NSW, WA legalises Uber

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By Leith van Onselen

Following the ACT Government’s landmark decision in September to legalise ridesharing services like Uber-X, it was always only a matter of time before the other state and Territory governments fell into line.

Today, I am happy to report that both the NSW and Western Australian governments will legalise ridesharing.

Regarding NSW:

Passengers face a $1 levy for each trip to help pay for a $250 million compensation package for the taxi industry after the Baird government decided to legalise ride-sharing services such as UberX.

The government has justified the levy over the next five years by insisting that the sweeping changes will significantly lower taxi and ride-sharing fares across the state…

NSW cabinet signed off on legalising ride sharing from midnight on Thursday and putting in place a compensation package, which includes payments of $20,000 to owners of taxi licence plates in perpetuity. The one-off payment will be capped at a maximum of $40,000 for owners of multiple plates.

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And WA:

A spokeswoman for Transport Minister Dean Nalder said he would make an official announcement later today to confirm Uber will be allowed to operate without fear of prosecution.

The decision has caught the taxi industry by surprise…

Uber drives will need to be licensed and will have to pay an annual fee and get police and medical clearances.

Good stuff. Hopefully the annual fee in WA won’t be excessive, otherwise consumers and operators will simply resort to the ‘black market’.

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Over to you Victoria, Queensland, South Australia and Tassie.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.