As the NSW government ramps up its campaign against UberX drivers, the state's neighbour is welcoming them with open arms.
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The ACT will become the first jurisdiction within Australia to carve out a legal home for drivers using UberX, the ride-sharing platform in which regular motorists offer lifts in their cars.
And in a potential preview of changes that may yet happen in other states, the ACT will also slash fees levied on taxi drivers and operators forced to compete with new ride-sharing operators.
"These reforms champion innovation and help taxi and hire car services remain sustainable and important modes of travel in the Territory," the Labor Chief Minister, Andrew Barr, said in a press release.
Uber does not currently operate UberX in the ACT. But the global ride-sharing goliath is preparing to enter the market, as it has done in Sydney and Melbourne in recent years, and from October 30 drivers will be able to offer lifts on UberX legally.
The NSW government has been accused of sending mixed signals in its approach to UberX, which is wildly unpopular with segments of the existing taxi industry.
The government is conducting a review of taxis and ride-sharing, but this week also said it had suspended the registration of 40 vehicles used for UberX trips.
The Labor opposition is in favour of regulating UberX.
The ACT reforms will come in two stages. The first stage will allow UberX drivers to legally operate in Canberra, provided they have passed criminal and driver history checks.
Annual licence fees for taxi drivers will fall from $20,000 to $10,000 on October 30 and, one year after the second stage of reforms are introduced, taxi licences will drop to $5000.
This second stage of reforms will include new laws around insurance and driver accreditation for ride-share drivers.
UberX drivers will not be able to pick up passengers who hail them on the street – this will remain the preserve of taxi drivers.
The NSW review of taxi and ride-sharing operators is scheduled to report to the government next month. The review's author, Gary Sturgess, has suggested that the owners of taxi licence plates could be compensated under coming reforms.
Mr Barr said Canberra's taxi drivers would have access to multiple modes of business, from rank-and-hail work to ride-sharing and third-party taxi booking apps.
"This will increase productivity and income streams for drivers while providing a consistent and high-quality on-demand transport service for Canberrans," Mr Barr said.
