The Passenger Service Levy is a fee per passenger service transaction that authorised taxi and booking
Payment of the levy is a condition of authorisation.
How and when do I register as a taxpayer for the levy?
Authorised service providers must register as a taxpayer to pay the levy within seven days of becoming liable – this means within seven days of commencing passenger services. Registration can only be done through the Industry Portal.
You will need to:
- Complete the online direct debit authorisation that will allow Revenue NSW to make deductions from your nominated bank account
- estimate the number of passenger service transactions that you expect to carry out during the next 12 months
- provide details of a person who can be contacted about the levy.
If you provide taxi services or booking services but are not registered as a taxpayer, you must still pay the levy. If you do not complete a return, the Commissioner may issue you with an estimated assessment of your liability. Read the Passenger Service Levy User Guide for more information.
Depending on the number of passenger service transactions to be conducted, a service provider may seek an exemption or rebate of the levy.
How is the levy calculated?
The levy is calculated on each passenger service transaction. For taxi service providers 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.
Please note the Passenger Service Levy will increase to $1.20 from July 1, 2023
Where does the levy apply across NSW?
Can I pass the levy on to customers?
It is up to each service provider to decide whether to absorb the 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.
Transport for NSW has included the levy in its most recent taxi fares order to enable taxi service providers to pass on the cost of the levy to passengers.
What are the GST and income tax implications of the levy?
The Australian Taxation Office has information about income tax and the GST in relation to the levy on the ATO website.
Lodging a levy return
If you carry out 600 or more passenger service transactions in any 12 month period, you must submit a monthly report on the number of transactions for the preceding month. This means that either on or before the last day of each month, you need to tell the Commissioner how many transactions you carried out for that month. Log into the Industry Portal and complete the Passenger Service Levy Return.
Download the Passenger Service Levy User Guide for the Industry Portal.
What if I don’t lodge a return?
If you fail to lodge a return, the Commissioner will make an estimated assessment of your liability.
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.
|151-400 passenger service transactions per year
|$150 total, payable annually
|401-600 passenger service transactions per year
|$400 total, payable annually
|600+ passenger service transactions per year
|$1.20 per passenger service transaction, calculated and paid monthly
Payment collection is managed by Revenue NSW. Service providers will need to nominate a bank account and ensure enough funds are available to allow for the payment to be debited on the 26th of each month (or the next business day if the 26th falls on a weekend or public holiday).
What happens if I don’t pay in full?
Payment of the levy is a condition of authorisation, and failure to comply may result in the Commissioner taking steps to vary, suspend or cancel your authorisation.
If this happens, you will be prohibited from providing taxi or booking services until your authorisation is reinstated. Fines of up to $110,000 may apply for a person who provides services without an authorisation. A body corporate convicted of providing a taxi or booking service without an authorisation for a second time may be liable for fines of up to $10,000,000. You will still be required to pay the outstanding debt, even if your authorisation has been cancelled.
What if I disagree with an assessment?
Under certain circumstances you can lodge an objection to your levy assessment. You can have the decision reviewed by lodging an objection with the Commissioner and providing evidence to support your objection. Objections can only be lodged in the following circumstances:
- a mistake was made in your return which resulted in a higher assessed liability
- if you receive an estimated assessment and you can demonstrate that the actual number of passenger service transactions is lower than the estimated assessment
- a third party such as a driver, affiliated provider or other relevant person collected the levy amount on your behalf, but has not paid the levy amount (or as otherwise agreed), and you have taken all reasonable steps to recover that amount, such as providing written instructions and reminders relating to the collection and remitting of levy amounts, or have the amount paid
- you gave a third party such as a driver, affiliated provider or other person reasonable directions about collecting the levy. The levy amount was not collected by the person as you directed, and you took all reasonable steps to recover the amount such as providing written instructions and reminders relating to the collection and remitting of levy amounts, or have the amount paid.
You may not make an objection on the grounds of the same third party failing to pass on the levy amount to you more than once.
You must continue to pay any outstanding levy amounts and any new assessments while your objection is being considered.
If you remain dissatisfied with the outcome of your objection, you can appeal to the NSW Civil and Administrative Tribunal or the Supreme Court of NSW for further review.
Unless the Commissioner is satisfied that there are special circumstances, you must lodge your objection within 30 days of the initial assessment if a mistake was made in your return or you received an estimate, or within 60 days if the issue is with third party collection.
You must provide written evidence to support your objection. Further information on lodging an objection will be contained in your notice of assessment.
Revenue NSW Passenger Service Levy Data
Revenue NSW is publishing Passenger Service Levy data quarterly. Data from the levy’s inception can be found at https://www.revenue.nsw.gov.au/help-centre/resources-library/statistics