Melbourne taxi fares are set for a shake up after a review has been fast-tracked. Source: Supplied
A NEW taxi fare structure with higher weekend evening rates and cheaper off-peak rates will be in place before midyear after a review of charges was fast-tracked.
Roads Minister Terry Mulder said the Essential Services Commission's recommendations for new fares were now likely to be announced in March, two months earlier than planned.
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It is understood this means passengers should see the new fares in taxis by the end of the financial year.
One proposal has been for peak weekend rates to be 20 per cent higher than standard rates, in exchange for cheaper off-peak rates.
Cabs queuing at Crown Casino on a Saturday night. Source: Supplied
Higher flagfalls are likely to be introduced to avoid problems with short-fare refusals, and to help address problems with Melbourne Airport pick-ups.
And taxi drivers would get 55 per cent of takings, instead of the current average of about 50 per cent, in a bid to improve services.
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News of the fast-tracked fare overhaul comes as Royal Taxis in Springvale closed its doors, leaving dozens of taxis off the road, with the industry blaming high costs - including a spike in LPG prices - and low fares.
Mr Mulder said some operators left the industry from time to time, but already there had been some interest from other companies in taking over Royal's licences.
Off peak fares will be reduced in the taxi fare shake-up. Source: Supplied
He said the Essential Services Commission's advice on a new fairer fare structure, which was supposed to be produced by May, had been brought forward.
"I would hope that somewhere around about March, we might be in a position to announce a new fare structure," he said.
Chair of the Taxi Services Commission, Graeme Samuel, told the Herald Sun that the commission and the ESC chair Ron Ben-Davis met regularly to ensure reforms were brought in quickly - including the new fare rates.
Taxi fares haven’t increased since 2008. Source: Supplied
"In the second quarter of this year, you should see a new regime of charges," he said.
He said some applications had already come through for new hire-car licences, with rule changes meaning companies could effectively run Mini Coupes or Smart Cars instead of luxury hire vehicles if they wanted.
And from February, credit-card charges for taxi customers would be cut from 10 per cent to 5 per cent.
Mr Samuel said changes would lead to a more competitive industry and better conditions for passengers.
He said no applications for new annual taxi licences, which can now be bought for $24,200 a year, had been made at this stage.
matthew.johnston@news.com.au
Taxis on Melbourne streets on a Friday night. Source: Supplied
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