From 1 July 2023 the Passenger Service Levy (PSL) will increase to $1.20 per passenger journey. The increase to the PSL was announced in 2022 to help offset the cost of the Government’s financial assistance to the point to point transport industry to help it adjust to major reforms.
What does this mean for you?
The Passenger Service Levy is a fee per passenger service transaction that authorised taxi and booking service providers must pay. For taxi service providers (TSPs) this means there is a fee for every rank or hail journey. For booking service providers (including for booked taxis), it means a fee for every booking which results in a passenger service.
It is up to each service provider to decide whether to absorb the levy or to pass it on to passengers. If they choose to pass the levy on to passengers (for instance, on top of the fare), it attracts GST, meaning the additional cost to the passenger will be $1.32.
What do you need to do if you choose to pass on the service levy?
Booked service providers (including booked taxis) will need to update systems and procedures to ensure the $1.32 appears on bookings and passenger receipts.
Taxi service providers will need to update fare related signage in vehicles and the PSL fee on fare calculation devices (meters).
More information for taxi service providers
The Transport for NSW Taxi Fares Order will be amended to allow TSPs to pass the increased PSL to passengers. As noted, if a taxi service provider decides to pass on the cost of the increased PSL, it will be $1.32 as the PSL attracts the GST. This means there will be an increase of 22 cents compared with the current fares order.
Frequently Asked Questions - Passenger Service Levy (PSL)
What if I don’t pass on the PSL to the passenger?
If you don’t pass on the PSL to the passenger, you as the service provider will need to pay $1.20 for each passenger service transaction (it will not attract GST). Your passenger service transactions still need to be reported to the Commissioner via the Industry Portal. You will be issued a notice of assessment based on this information. If you fail to report, the Commissioner will make an estimated assessment of your liability.
For more detailed information on when to report your passenger service transactions, how to report and paying the PSL please go to our Passenger Service Levy webpage.
How do I know what to pay?
Monthly levy payments are calculated based on your return, or an estimated assessment. You will be issued with a notice of assessment telling you how much you need to pay.
For more information on how the levy is calculated and how to pay the PSL please go to our website.
I am a TSP and pass the PSL onto the passenger. If the passenger is paying a fare with cash, is the PSL of $1.32 rounded up or down?
Existing rounding rules for when a passenger pays a fare with cash are unchanged.
Where a passenger pays by cab charge, credit card or EFTPOS it is unnecessary for businesses to round the total value of the transaction, as such the full $1.32 can be passed onto the passenger.
Please go to the ACCC’s website for information on rounding transactions.
Authorisation Fees – reminder ahead of end of financial year
Authorised providers of a taxi service or booking service are required by law to pay an authorisation fee at the end of each financial year.
If you are authorised at any time during a financial year, you are required to pay the authorisation fee by the date specified on the relevant Fee Notice issued to you.
This means, at the end of this financial year, if you are planning to stop taking bookings or providing passenger services as an authorised service provider or if you no longer provide taxi or booking services as an authorised service provider, you will need to surrender your authorisation before 30 June 2023 or you will be required to pay the annual authorisation fee for 2023/24.
Frequently Asked Questions - Authorisation
How can I surrender my authorisation?
Surrendering an authorisation is a simple process that can be completed online via the Industry Portal. If you require assistance, please contact the Industry Contact Centre on 131 727.
What if I surrender my authorisation part way through the financial year?
If you are an authorised service provider (ASP) and surrender your authorisation part way through a financial year, you still need to pay the authorisation fee for that financial year.
For example, Tony is an ASP who decides to surrender his authorisation on 25 July 2023. Tony will still need to pay an authorisation fee for financial year 2023/2024 as he was authorised for part of that financial year.
If Tony knew he no longer wanted to be authorised prior to 30 June 2023, he should have surrendered his authorisation before the end of the previous financial year (30 June 2023).
The authorisation Tony needs to pay for the 2023/2024 financial year will be based on the number of passenger service transactions (trips) that Tony carried out whilst he was authorised for part of the financial year, which is the period 1 July 2023 to 25 July 2023.
Looking for more information on annual authorisation fees?
Visit the Commissioner’s website for further information including FAQs and a fact sheet on authorisation fees.