Independent Pricing and Regulatory Tribunal proposes flat rate on taxi fares from Sydney Airport

News.com.au

3 days ago

The days of passengers getting slammed with mammoth taxi fare shocks from Sydney Airport could soon be over, with a powerful pricing regulator recommending fare caps on trips to and from the busy transport hub.
The Independent Pricing and Regulatory Tribunal has recommended the NSW government introduce a maximum $60 fare for taxi trips in standard taxis from the airport to the CBD and $80 for maxi taxis.
The flat rate system would be trialled over a two-year period and would only apply to trips from the airport to a 2000 postcode destination.
The fares would also rise with the consumer price index each year from July 2026. The proposal is designed to block inconsistent fares to the city, with some passengers reporting a $50 trip while others shell out up to $100.
NSW Taxi Council chief executive Nick Abrahim told NewsWire that he supported the caps and said they would ensure 'reliability and consistency'.
'We are disappointed when we hear reports of overcharging or drivers not using the meter,' he said.
'That what we're trying to resolve so passengers can have that certainty.'
He also said the caps would support Australia's tourism economy.
'Visitors coming to our country, they come here and have a great experience,' he said.
'We don't want them talking about they got overcharged or had some bad experience.'
IPART originally recommended a $55 cap, he said, but drivers argued that would be too low and presented a $65 alternative.
Mr Abrahim said the council would support the $60 trial, but it would have to be reassessed to make sure it was working and striking a fair balance between driver earnings and affordability.
'There needs to be flexibility,' he said.
'Is that ($60) the right amount? We do want to make sure it is viable for drivers.'
Alongside the airport cap, IPART recommends increasing maximum rank and hail rates for drivers across a range of scenarios.
Night rates in urban zones could move from $2.73/km to $3 for the first 12km and then $2.73 thereafter.
Hire charges look set to move from $3.60 to $5.
NSW Transport Minister John Graham is considering the new rates
If approved, the new system will come into effect from July 1.
The potential changes come as taxi drivers face increased competition at the airport from rideshare services like Uber.
In 2018, taxis accounted for 57 per cent of pick-ups and drop-offs but only 27 per cent in June 2024, airport data shows.