Levy requirements for booking services

The On-demand passenger transport Levy (the Levy) commenced on Monday 1 April 2019 and will fund the buyback of Perth metropolitan taxi plates. The Levy is temporary and will be collected from on-demand booking services.

On-demand Passenger Transport Levy ending on Tuesday 31 May 2021

The WA Government has committed to ending the On-demand Passenger Transport Levy (the Levy) on Tuesday 31 May 2022 – this is 11 months earlier than planned.

The Levy, which began on 1 April 2019, was established to recover the costs of the $120 million Taxi Plate Buyback Scheme. A further $9 million was added to this amount in April 2020 as part of COVID-19 relief measures.

The exact amount recovered by the Levy will not be known until all levy returns have been submitted and finalised later this year. 

What does this mean for ODBSs?

The repeal of the Levy will only impact on-demand booking services (ODBSs) providing leviable services in the Perth Metropolitan and Murray and Peel districts. 

Affected ODBSs will need to ensure their fare schedules, fare calculation devices (meters), and receipts are up to date – any changes that were previously made to accommodate the Levy will no longer be required or lawful.

Note: The Department of Transport is currently undertaking a review of maximum metered rank or hail (taxi) fares, and an update is expected to be released by September 2022. The review may result in further changes to fare schedules. To avoid additional costs to ODBSs, DoT will take an educational approach to fare schedules still displaying Levy information over this period.

ODBSs are liable to pay Levy on affected bookings taken on or before Tuesday 31 May 2022, even if the trip occurs after this date. Any bookings taken after this date are not subject to the Levy. 

Final Levy return due dates for ODBSs

Large ODBSs with a nominated fleet band of 51 or more will be required to submit a final Levy return before the end of June, for all bookings taken in May.

Small ODBSs with a nominated fleet band of 50 or less will be required to submit a final Levy return before the end of July, for all bookings taken in April or May.

If you have bookings for trips that occur after 31 May 2022, you must include any applicable Levy in your final Levy return.

Example levy return timings

Fleet band ODBS size (large or small) Date booking taken Trip start Levy required to be paid? Final Levy return date
1 Small 31 May 2022 at 11.55am 1 June 2022 at 12.30am Yes July
6-15 Small 15 May 2022 25 August 2022 Yes July
16-30 Small 1 June 2022 at 12.05am 1 June 2022 at 12.35am No N/A
51-100 Large 29 May 2022 31 May 2022 Yes June
251-500 Large 4 May 2022 12 August 2022 Yes June

What does this mean for drivers?

Drivers should contact their chosen ODBSs with any questions about how the end of the Levy may affect them.

Drivers are encouraged to make sure any fare schedules, fare calculation devices (meters) and receipts issued from Wednesday 1 June 2022 no longer include charges or details for the Levy.

  What is the On-demand Passenger Transport Levy?

On 1 April 2019, the On-demand Passenger Transport Levy was introduced to fund the buyback of owned Perth metropolitan taxi plates. This program was expected to apply for approximately four years (until April 2023) to cover the full cost of the Taxi Plate Buyback Scheme. 

The Levy is 10% of every fare to a maximum of $10 per trip. It applies to on-demand trips in vehicles that seat 12 or less people (including the driver) that start and finish in the Perth metropolitan area, Mandurah or Murray local government district areas.

The Levy is collected from on-demand booking services (ODBSs), including those who take or facilitate bookings for taxi, ride-sourcing and charter services.

In April 2020, $9 million collected by the Levy (from funds collected over projections) was redirected back to the industry as part of the COVID-19 relief measures.

  Which trips does the Levy apply to?

The Levy applies to on-demand trips that:

  • start and finish inside of the defined Levy area (incorporating the Perth metropolitan area, Mandurah or Murray local government district areas); and
  • are undertaken in vehicles equipped to seat 12 or less people (including the driver).

If an on-demand booking service takes or facilitates bookings for any of these trips, they must register for the Levy. 

The Levy does not apply to on-demand trips that are conducted in wholly electric vehicles.

  Applying for a Levy exemption

On-demand booking services (ODBSs) that solely take bookings for special events in luxury or vintage vehicles may apply for an exemption from the Levy.

Special events are defined as:

  • a tour; 
  • a wedding, funeral, graduation, birthday party or other ceremony or celebration of religious or personal significance; or
  • a ball or similar function.

Bookings that relate to trips to or from an airport, or that are provided for business purposes are not considered special events.

To apply for an exemption, complete the ODT104: Application for Exemption - On-demand Passenger Transport Levy form available below. 

DoT will assess each application for an exemption from the Levy based on the information provided by the applicant. Information available on the applicant’s website and/or social media presence will also be taken into consideration.

Please note that ODBSs will still need to register for the Levy when applying for authorisation. If DoT approves the completed application, the Levy registration will be removed from their authorisation, and they will not be liable to pay the Levy.

If you are operating outside the defined Levy area, you do not need to apply for an exemption. You can indicate this when applying for an ODBS authorisation.

For further details on DoT’s policy on Levy exemptions, including electric vehicle exemptions, visit the On-demand transport levy policies page.

  Registering for the Levy

When applying for an ODBS authorisation via DoTDirect, ODBSs must elect to register for the Levy unless they:

  • only offer services that are not considered leviable; or 
  • have been granted an exemption by DoT.

Detailed instructions on how to register for the Levy are available in the On-demand Passenger Transport Levy User Guide below.

  Calculating the Levy

The "Levy fare" is the amount that the Levy is calculated on. The Levy fare is based on the metered fare, or the contract fare agreed with the passenger, prior to the addition of GST. Fares that are part of an ongoing contract with a hirer, and do not have an individual Levy fare recorded in the contract, are also leviable.

The following amounts are included in the Levy fare:

  • base, minimum or metered fare;
  • callout charge, guaranteed booking fee or surcharge set out in the Transport (Road Passenger Services) Regulations 2020 fare schedule;
  • the amount of the fare relating to the time and distance of travel;
  • any booking fee; and
  • any other amount payable for the service that is not listed below as an exclusion.

The following amounts are excluded from the Levy fare:

  • GST;
  • airport fee;
  • payment method charge (e.g. credit card surcharge);
  • cleaning fee;
  • child restraint, booster seat or safety harness fitting charge;
  • charge for carrying oversized or excess luggage using a trailer, roof-rack or similar equipment; and
  • any amount allocated for the Levy as long as it doesn't exceed the lesser of 10% of the Levy fare or $10.

If an ODBS chooses to pass the Levy onto customers (charging the Levy to the customer in addition to their fare), the Levy will attract GST. GST is paid to the Australian Tax Office, not to the Department of Transport as part of the Levy.

1. Passing the Levy on to customers

Levy component Amount
Fare – GST exclusive $9.09
GST on service $0.91
Amount allocated to Levy (10% to a max of $10) $0.91
GST on levy payable $0.09
Total fare paid by customer $11.00
Levy liability (paid to DoT) $0.91
GST paid to ATO $1.00
Net income $9.09

2. Absorbing the Levy (not passing it on to customers)

Levy component Amount
Fare – GST exclusive  $9.09
GST on service $0.91
GST on levy payable -
Total fare paid by customer $10.00
Amount allocated to Levy (10% to a max of $10) $0.91
Levy liability (paid to DoT) $0.91
GST paid to ATO $0.91
Net income $8.18

For more information on GST, please see the Passenger movement levies information on the Australian Taxation Office website.

Multi-service contracts

Multi-service contracts include fares that are part of an ongoing contract with a hirer. For example, on-demand services provided for a specified time period (e.g. one year) for an agreed upon amount (e.g. $10,000).

A three-step formula is used to determine the Levy fare where the service is provided as part of a multi-service contract

For the purposes of calculation, the following terms are used:

  • Assessment period – the Levy assessment period:
    • quarterly – booking services with up to 50 vehicles; or
    • monthly – booking services with over 50 vehicles.
  • Agreement period – the time period specified in the contract.


Step 1: If the agreement period was 365 days and the relevant assessment period was 91 days, the percentage would be 25% (i.e. 365/91=4=25%).

That same percentage is then used to calculate an amount of the total amount payable under the agreement for on-demand passenger transport services – using the same inclusions and exclusions above to determine the Levy fare.

Step 2: If the total amount payable for on-demand services under the agreement was $10,000, 25% of that would be $2,500.

The amount calculated in Step 2 is then divided by the number of on-demand passenger services completed during the relevant assessment period.

Step 3: If 40 trips were taken during the 91-day assessment period, $2,500 divided by 40 is $62.50. This amount would be the levy fare to which 10% would be applied.

Full details of Levy calculations are available in the regulations below.

Levy payments where the fare is not paid

If a trip is completed and the fare has not been paid (whether due to non-payment by the passenger or a declined financial transaction), the booking service is still liable for Levy on that trip.

External Link Passenger movement levies: Australian Taxation Office
Opens in a new window Transport (Road Passenger Services) Act 2018
External Link Transport (Road Passenger Services) Regulations 2020

  Lodging Levy returns

On-demand booking services (ODBSs) must lodge Levy returns to DoT on a monthly or quarterly basis, dependent on the number of vehicles they dispatch work to:

  • quarterly – ODBSs with up to 50 vehicles; or
  • monthly – ODBSs with over 50 vehicles.

All ODBSs who have registered for the Levy must lodge a return every month or quarter (dependent on their size). ODBSs that have not taken bookings for any leviable trips during an assessment period are still required to lodge a zero-dollar return.

The following information must be provided to DoT as part of the Levy return:

Individual trips with a Levy fare less than $100

  • Number of bookings; and
  • total value of levy fares for bookings.

Individual trips with a Levy fare more than $100

  • Number of bookings.

For details on all record keeping requirements for ODBSs, visit Responsibilities for authorised booking services.

Detailed instructions on how to lodge a Levy return are available in the On-demand Passenger Transport Levy User Guide below.

  Paying the Levy

Note: ODBSs will no longer be liable to pay the Levy for bookings made from 1 June 2022.

During the Levy registration process, ODBSs will be required to nominate a bank account. This will be accessed by DoT to direct debit the required Levy payment as reported by ODBSs.

The Levy amount will be debited from the nominated bank account 14 days after lodging a Levy return.

Please refer to the Direct Debit Request Service Agreement: on-demand booking services - Levy payments document below when registering for the Levy in DoTDirect.

  Changing a Levy return

On-demand booking services (ODBSs) may amend or change the details of their Levy return if a mistake has been made. To do this an ‘objection’ must be submitted in DoTDirect. 

Objections must be raised within 60 days of the Levy return due date. 

When DoT receives an objection, we will:

  • consider the grounds of the objection and request further information if required;
  • decide whether to fully or in part allow the objection, or disallow the objection;
  • provide a written response if the objection is disallowed or partly allowed; and
  • issue a reassessment if appropriate.

Even if an ODBS raises an objection, they are still obligated to pay the Levy by the due date.

If an ODBS is dissatisfied with the outcome of an objection or other reviewable decision, they may request an external review by the State Administrative Tribunal.

Detailed instructions on how to change a Levy return are available in the On-demand Passenger Transport Levy User Guide below.

  Levy audits

ODBSs are legally required to keep records of all leviable trips, including:

  • date of trip;
  • start and finish times of trips;
  • trip locations;
  • fare components and amounts;
  • names of drivers; and 
  • vehicle registration details. 

All ODBSs who have registered for the Levy will be required to undergo a Levy audit at least once during the duration of the Levy.

When ODBSs are audited, they are required to submit their relevant Levy records to DoT for review. These records must be submitted electronically in an Excel template provided by DoT – the Levy records template and the Levy template completion user guide can be found below.

ODBSs are encouraged to use this template to keep their Levy records on an ongoing basis – this will help ensure compliance with Levy record keeping requirements and eliminate any additional work for Levy audits.

Please note: this template captures Levy records only – ODBSs will need their own processes to keep other relevant records. Visit Responsibilities for authorised booking services for further information.

For any queries regarding Levy audits or Levy record keeping requirements please contact On-demand Transport by phone on 1300 660 147 or by email at ondemandtransport@transport.wa.gov.au.

  Levy compliance and penalties

If an on-demand booking service (ODBS) fails to pay the Levy, their authorisation may be cancelled, and their operations must cease. This means that ODBS will no longer be able to provide work to drivers.

ODBSs are required to keep prescribed Levy records. For more information on record keeping requirements see Responsibilities for authorised booking services.

DoT monitors compliance through a range of activities, including:

  • investigations using data analysis and intelligence;
  • engaging specialist auditing firms;
  • use of 'secret shoppers'; and
  • on-road checks by DoT Education and Compliance officers.

Penalties may be applied for failing to pay the Levy, including:

  • Booking service fails to lodge a Levy return: $5,000.
  • Booking service fails to pay the Levy: $5,000.
  • Booking service fails to keep relevant records for Levy: $20,000.
  • Booking service continues to operate without authorisation: $40,000 for an individual and $200,000 for a company.
Page last updated: Mon May 16 2022 4:26:50 PM