About community transport in NSW
Community transport operators play an important role in NSW by providing services for eligible people, including those with accessibility needs or limited access to public transport.
Community transport is the transport, by a motor vehicle, of specified people, either supported by Commonwealth funding or under a contract with Transport for NSW.
Journeys under a direct contract with Transport for NSW are not considered to be a ‘passenger service’ under our law.
Recent changes
From 1 July 2025, community transport services funded under a Commonwealth Government program such as the Commonwealth Home Support Program (CHSP), will be regulated under NSW Point to Point Transport law. This means, community transport providers who:
- are supported by Commonwealth funding, and
- provide services using a vehicle with 12 seats or less (including the driver)
will need to be authorised as a ‘booking service provider’ to be able to continue providing passenger services.
While most community transport services will now be regulated under Point to Point Transport law due to these Commonwealth direct funding arrangements, a handful of community transport services will remain under a contract arrangement with Transport for NSW to service transport disadvantaged communities, these services are not passenger services under point to point transport law. A community transport provider who only carries out passenger services under a contract arrangement with TfNSW are not required to be authorised by the Commissioner.
What is point to point transport in NSW?
In NSW, point to point transport is any passenger service, in a vehicle with 12 seats or less, that can take customers on the route they choose, at a time that suits them, for a fare.
The following are passenger services:
- If the passenger has paid a fare.
- If your business is transporting people and has been paid by a third party, e.g. a club, a retirement village, or any other entity.
Services that are not passenger services:
- Transport under the Assisted School Travel Program (Department of Education).
- Transport for patients organised by hospitals or by HealthShare NSW.
- Ambulance Services authorised under the Health Services Act 1997.
- Transport for persons in custody by or on behalf of Corrective Services NSW.
Which community transport services does the Point to Point Transport Commissioner regulate?
While most community transport services will now be regulated by Point to Point Transport law due to Commonwealth direct funding arrangements, a handful of community transport services provided under a contract with Transport for NSW are not passenger services under point to point transport law. Services under a contract with Transport for NSW continue to be considered not a ‘passenger service’ under our law. If you are unsure if you are offering a passenger service under point to point law, please contact us on 131 700 (Monday to Friday between 8am and 5pm).
When does the Passenger Service Levy (PSL) apply?
Only the journeys which are booked point to point passenger services attract the Passenger Service Levy (PSL).
It is up to each service provider to decide whether to absorb the $1.20 levy or to pass it on to customers. If you choose to pass the levy on to customers (for example, as an addition to their fare), it will attract GST and a charge of $1.32 (incl. of GST) must be collected.
For more information please visit the Passenger Service Levy page on our website.
The table below will help community transport providers to understand where the PSL should be applied.
Do I need to collect the PSL? | |
Where a fare is charged, or payment is made to carry the passenger | Yes |
Services which are provided under contract or on a booking basis, for instance, from NDIS or DVA | Yes |
Fully complimentary (free) transport, where you are not getting paid or reimbursed | No |
All services which are under a Transport for NSW contract | No |
The service is in a vehicle which has 13 seats or more (including the driver) | No |
The service is funded by the Commonwealth directly – a CHSP Community Transport Service | No* |
Where the passenger service is not provided for any reason | No |
Where the passenger service commences in another State or a Territory | No |
Where another provider is already liable to pay the levy for the booking | No |
Transport under the Assisted School Travel Program (Department of Education) | No |
Transport for patients organised by hospitals or by HealthShare NSW | No |
Ambulance Services authorised under the Health Services Act 1997 | No |
Transport for persons in custody by or on behalf of Corrective Services NSW. | No |
* Note: A PSL exemption order is in place until 30 June 2027 for this type of service
Can I use my community transport vehicle to provide point to point transport services?
Yes, you can if the following criteria are met:
- You are authorised as a booking service provider or you accept bookings from another authorised booking service provider.
- Your vehicle has 12 seats or less (including the driver).
- The vehicle meets the required specifications.
Note: if you are providing services in a vehicle of 13 or more seats you may come under the Bus Operator Accreditation Scheme (BOAS) further information on BOAS can be found here.
Do I need to collect the Passenger Service Levy for all point to point trips subsidised by Commonwealth funding?
An exemption applies for journeys made under the Commonwealth Home Support Program (CHSP) Community Transport Service, no levy is payable for these journeys.
This exemption runs from 1 July 2025 to 30 June 2027. Further information can be found in the Point to Point Transport (Community Transport Passenger Service Levy Exemption) Order 2025.
Do I need to be authorised to provide passenger services for the National Disability Insurance Scheme (NDIS) or the Department of Veterans Affairs (DVA)?
Yes. If you are providing passenger services other than those under a community transport contract with Transport for NSW you are required to be authorised to provide passenger services which may be provided under contract or on a booking basis, for instance, from NDIS and DVA.
Do I need to be authorised to provide complimentary passengers services for a local club, (e.g. RSL)?
If you provide complimentary transport, which is free of charge, and you are not getting paid or reimbursed, it is not considered a passenger service and authorisation would not be required.
If you are paid or reimbursed by e.g. the local club, to provide transport whether the passenger is charged a fee or not, authorisation from the Point to Point Transport Commissioner will be required.
Can I carry community transport passengers and point to point transport passengers in my vehicle at the same time?
Yes. To provide this type of ‘blended’ service, the person or business taking the point to point transport booking must be authorised by the Commissioner and comply with all obligations. Only the journeys which are booked point to point passenger services attract the passenger service levy.
What types of services I can provide if I become authorised?
Authorisation opens opportunities such as:
- on-demand or flexible route services
- private shuttle services or airport transfers
- contracts such as icare transport
- on-demand wheelchair-accessible services.
Further education
Related resources are available from the Learning centre and the following links:
If you have any questions or need further information, please visit the Point to Point Transport Commissioner’s website pointtopoint.nsw.gov.au or call the Industry Contact Centre on 131 727.