COVID-19: Updates on Department of Transport services

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.

  What is the On-demand Passenger Transport Levy?

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 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), which includes those who take or facilitate bookings for taxi, ride-sourcing and charter services.

It is expected the Levy will apply for approximately four years, to cover the full cost of the Taxi Plate Buyback Scheme.

ODT_P_FS_Levy_factsheet.pdf icon On-demand Passenger Transport Levy fact sheet Kb

  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 a 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.
ODT_P_LevyAreaOndemandPassengerTransport.pdf icon On-demand passenger transport Levy map Kb

  Applying for a Levy exemption

Booking services 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, booking services will still need to register for the Levy when applying for authorisation. If the completed application is approved by DoT, the Levy registration will be removed from their authorisation and they will not be liable to pay the Levy.

If you are operating outside of 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.

ODT_P_OdT_levy_exemption_application_ODT104.pdf icon ODT104: Application for exemption - On-demand Passenger transport levy form Kb

  Registering for the Levy

When applying for an ODBS authorisation via DoTDirect, booking services 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.

OdT_P_Levy_user_guide.pdf icon User Guide: On-demand Passenger Transport Levy Kb
ODT_P_OdT_levy_exemption_application_ODT104.pdf icon ODT104: Application for exemption - On-demand Passenger transport levy form Kb
ODT_P_Direct_Debit_levy_authorisation.pdf icon Direct debit request service agreement: on-demand booking services - levy payments Kb

  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 a booking service 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.

Example:

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

Booking services must lodge Levy returns to DoT on a monthly or quarterly basis, dependent on the number of vehicles they dispatch work to:

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

All booking services who have registered for the Levy must lodge a return every month or quarter (dependent on their size). Booking services that have not undertaken any leviable trips for 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 trips
  • Total value of levy fares for trips

Individual trips with a Levy fare more than $100

  • Number of trips

For details on all record keeping requirements for booking services, 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.

OdT_P_Levy_user_guide.pdf icon User Guide: On-demand Passenger Transport Levy Kb

  Paying the Levy

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

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.

ODT_P_Direct_Debit_levy_authorisation.pdf icon Direct debit request service agreement: on-demand booking services - levy payments Kb

  Changing a Levy return

Booking services 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 a booking service raises an objection, they are still obligated to pay the Levy by the due date.

If a booking service 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.

OdT_P_Levy_user_guide.pdf icon User Guide: On-demand Passenger Transport Levy Kb

  Levy audits

Booking services 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 booking services who have registered for the Levy will be required to undergo a Levy audit at least once during the duration of the Levy. When booking services 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 template).

The Levy records template and the Levy template completion user guide can be found below. Booking services 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 – booking services will need their own processes to keep other relevant records. Visit Responsibilities for 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.

ODT_P_Levy_audit_process_map.pdf icon Levy audit process map Kb
ODT_P_Levy_Template_Completion_User_guide.pdf icon Levy template completion user guide Kb
ODT_P_Levy_Records_Template.xlsb icon Levy records template (desktop only access) Kb

  Levy compliance and penalties

If a booking service fails to pay the Levy, their authorisation may be cancelled, and their operations must cease. This means that booking services will no longer be able to provide work to drivers.

Booking services 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"

  • 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: Tue Oct 20 2020 3:03:20 PM