Uber levy could be slashed to $1

The levy, which will be slapped on passenger trips from next year, is part of the Andrews Government’s $494 million plan to compensate taxi licence holders when they legalise Uber and other ride-share operators.

Sex Party MP Fiona Patten says she will put forward amendments to halve the $2 levy, as well as put a 10 year limit on how long the fee will be in place.

Her move comes as the bill is in danger of not passing in it’s current form.

The amendments are likely to receive support from the Coalition, but it is still unclear whether the government — which argues lowering the levy would torpedo its plans to pay compensation to the taxi industry — will back the changes.

Ms Patten said it was a “sensible compromise”.

“It just makes sense, the $2 levy will affect the market,” she said.

“A $1 charge will be easier for compliance. These amendments will make (the legislation) acceptable to the community.’’

It is likely the motion will be moved in the Legislative Council on Thursday when the bill is expected to be debated.

Minister for Public Transport Jacinta Allan said the government was working to pass the legislation.

“Our bill regulates ridesharing, reduces fares and provide assistance for the existing industry.

“We will continue to work with all Members of Parliament to get the best outcome for all Victorians.”

Earlier today Treasurer Tim Pallas said he didn’t think it was beneficial to put any kind of sunset clause on the $2 levy.

“We’ve taken the view that it would take quite some time before the recovery of the funds that will be necessary to pay for this, so putting a sunset on this would be both contradictory and negative to the interests of continuing to meet those obligations,” he said.

“I’m certainly sure the upper house would at some stage look to review the acquittal, if you like, of the obligations.

“Only then, when that acquittal has occurred, should there be a discussion about whether the charge remains in place.

“Certainly we’ve put an exceptionally generous package of compensation going forward.”

This month a parliamentary inquiry urged the Andrews Government to put an end date on the new Fee.

The panel included three Labor members who did not provide dissenting reports.

One Labor MP said the bill had been delayed to long and must pass, even with changes.

– Alex White and Anthony Galloway, Herald Sun, 20/6/2017