WA caps taxi surcharge to 5 per cent

• Regulations to cap taxi surcharges for non-cash payments take effect today

• Drivers can only charge up to 5 per cent surcharge, including GST

• Current charges up to 11 per cent, including GST

The State Government has capped unfair surcharges imposed on taxi patrons who pay their fare with non-cash methods to 5 per cent.

Transport Minister Dean Nalder said from today, passengers using a credit, debit or charge card, manual voucher, e-ticket or a smartphone app to pay their taxi fare would no longer have to pay a surcharge of up to 11 per cent.

"These regulations, which reduce the cap to a maximum of 5 per cent including GST, are a big win for Western Australian taxi customers," Mr Nalder said.

"The community agrees that surcharges of up to 11 per cent are too high and cannot be justified."

The State Government last year finalised regulations to cap surcharges in Western Australia following extensive consultations with stakeholders, including the Victorian Taxi Services Commission who capped surcharges in February 2014.

In finalising the new regulations, the State Government had to consider constitutional issues, the most effective mechanisms for enforcing any cap on non-cash payment surcharges and how the Department of Transport (DoT) would enforce regulations.

"For some drivers and operators this will be a big change, however I am confident the industry will adapt and support these changes," the Minister said. 

DoT will take a graduated approach to enforcement and will focus on educating drivers and operators about the new regulations.

        Fact File

• In April 2014, the New South Wales Government announced it would introduce legislation to halve the surcharge rate

• In December 2014, the NSW Government implemented their cap

• New cap takes effect in Western Australia from February 24, 2015

Minister's office - 6552 6400