– Is Taxi Fairness Fund Fair? Are Victorian taxi drivers being treated fairly by the Victorian Government's reform package of the commercial passenger vehicle industry?
The Government announced on 22 August 2016 a series of reforms which would see Uber legalised and taxi owners receive the benefit of a compensation fund. Victorian taxi owners have all purchased their licenses in good faith and for substantial sums. The reforms will completely eliminate the value of those licenses. The Fairness Fund (expected to be $75 million raised from a levy on trips) will only be available to those who experience financial hardship.
A separate (Government funded) Industry Transition Assistance package will provide assistance to licence holders. The assistance is said to be only 'fair and reasonable', not full and comprehensive compensation. The gap between the two is likely to be significant.
The Government has promised to pay licence holders $100,000 for the first licence, $50,000 for the 2nd licence and nothing for subsequent licences. But some licence holders paid $500,000 only a few years ago.
To the extent the reforms destroy accrued value in existing businesses and assets (licence holders, network service providers, taxi operators and taxi drivers), Gadens is interested in exploring avenues to seek compensation from the Government on their behalf. Anyone interested in registering their interest in seeking compensation for the impact of the Government's taxi industry reforms should register here:
will apply to those registering their interest.
For further information, please contact:
Glenn McGowan QC
Partner & Chief Counsel
Tel: +61 3 9252 2587
Mobile: +61 412 263 691