Better security, stronger vehicle identification and removing barriers for service delivery in regional South Australia are among a raft of changes proposed after a thorough review of the state’s taxi, Access cab, chauffeur and rideshare industries.

The broad series of reforms, with changes to focus on enhancing safety, reliability and fairness, were recommended after a wide-ranging review of the state’s Passenger Transport Act.

The Malinauskas Government committed to undertaking a rigorous audit of all point-to-point passenger transport services in South Australia, including taxis and rideshare services.

The review by the Department for Infrastructure and Transport has been informed by feedback from industry, customers and both internal and external stakeholders through public consultation.

Safety and security, including vehicle tracking and the clear identification of drivers, were key themes identified by customers.

The changes proposed would allow more taxis into the SA market, which will combat surge pricing, helping bring down fares for customers, and broaden availability statewide.

Key recommendations include:

• Removing barriers for service delivery in regional South Australia and city fringe areas, which will allow metropolitan taxis, chauffeur and rideshare vehicles to operate statewide
• Removing the cap on the number of taxi licences able to operate in Adelaide. Unlike rideshare, the number of taxis cannot grow in response to demand because of the limit on the number of licences. Under a new model, the State Government would issue licences annually
• Providing new powers to impose a broader range of sanctions, which will ensure stronger compliance and enforcement powers to address safety issues and fraudulent behaviour
• Strong penalties for the inappropriate use of meters and EFTPOS machines in point-to-point transport vehicles
• Requiring cameras in all point-to-point vehicles to ensure in-vehicle safety for drivers and customers
• Introducing consistent vehicle inspection requirements, with annual inspections until a vehicle is five years old, and six-monthly inspections thereafter

All taxi fares, including for rank and hail and South Australian Transport Subsidy Scheme (SATSS) work, would remain regulated and subject to annual indexation. A new ministerial power to approve a surcharge on regulated fares is recommended to enable adjustment to fares in response to issues such as rising fuel prices, weekend work and public holidays and after-hours work. The Transport Minister would also have the power to prohibit or cap surge pricing in certain situations to prohibit price gouging, a measure in line with other Australian jurisdictions.

In order to deliver the changes required to address many of the problems identified during this detailed review, it was recommended that the taxi licence structure be overhauled – with the State Government conducting a broad licence buy-back of eligible licences and issuing licences annually.

The review heard from stakeholders across the taxi industry about the devastating impact the introduction of rideshare has had on the sector. This is in part due to the regulatory differences between taxis and rideshare, such as camera requirements for taxis only, specialised equipment and regulated fares. In addition, rideshare operates in an uncapped market, further limiting the taxi industry’s ability to compete.

Metropolitan taxis currently have a restricted market through a licencing system. Since the early 1990s, many taxi licences were purchased as an investment – however, the value of these licences has plummeted from a high of around $375,000 to as low as $10,000 since the introduction of rideshare operations.

The taxi industry continues to call for State Government support to address the impact of the decrease in licence and leasing values and impact upon the profitability of the sector, which has seen a reduction of over 50 per cent of taxi work since the introduction of rideshare.

The review recommends a broad Taxi Industry Reform Package, with a buyback of taxi licences from metropolitan taxi licence holders residing in South Australia before the introduction of rideshare. It is proposed eligible general licence owners receive a payment of $200,000 for the first licence and $10,000 for each subsequent licence up to a total of six. Access Taxi licence holders would receive $100,000 for the first licence and $10,000 for each subsequent licence.
This package would be funded by a $1 increase in the point-to-point passenger transport levy, which would increase to $2.
The review highlighted the need for fundamental change in the way Access Taxi services are delivered, with the current model delivering long-term poor service to people with disabilities.

In the year to July 2024, nearly 7000 customers waited more than half an hour for an Access Taxi to arrive, impacting around 580 clients a month.

The Government will conduct a market sounding process to identify viable options for a fundamentally new delivery model.

Quotes

Attributable to Tom Koutsantonis

There are profound challenges facing the taxi industry in South Australia – and they are adversely impacting both industry stakeholders and customers.

This holistic departmental review of point-to-point services highlights the urgent need to transition the taxi industry into a modern, fit for purpose regulatory structure with a focus on the safety of drivers and all passengers.

Point-to-point customers and drivers are vulnerable to a multitude of safety risks. We’ve seen a number of incidents, from assault and theft to unsafe driving, with criminal charges laid against point-to-point drivers – and we’ve also seen drivers subjected to attacks by passengers.

Customers are also vulnerable to fare gouging, both through inappropriate use of surcharging and pressure from drivers who use illegal payment methods.

Most disturbing is the desperate need for an overhaul of the Access taxi system, with SATSS figures over the last two years showing that alleged fraud remains prevalent across the Access industry - with 66 plates reported as being involved in allegedly fraudulent behaviour.
There have been 51 counts of drivers inappropriately claiming on lifting fees, with a total of 91 double-ups being recorded throughout this period.

Everyone deserves a fair and equal opportunity when catching transport and that is why we are already getting on with the job to expand the Access taxi lifting fee to support communities statewide.

But there is a clear need for greater reform, and we are asking the market to put forward alternative options.

The Government intends to adopt all recommendations of this landmark review, but we will consult with stakeholders before legislating.