Levy requirements for booking services
How does the Levy affect booking services?
The Levy will be 10% of every fare to a maximum of $10 per trip. The Levy will apply to on-demand trips in vehicles that seat 12 or less people (including driver) that start and finish in the Perth, Mandurah or Murray areas.
It is expected the Levy will apply for approximately four years, to cover the full cost of the taxi plate buyback. A condition of booking service authorisation is payment of 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 who have been granted a special event provider exemption by DoT.
Booking services must lodge Levy returns to DoT on a monthly or quarterly basis, dependent on the number of vehicles they dispatch work to.
Booking services must keep records of all leviable trips. This includes start and finish dates and times, start and finish locations, the individual component amounts of the fare paid by the passenger, name of driver and vehicle registration.
A detailed Levy lodgement user guide is available below.
Further information about the Levy is available at On-demand passenger transport levy
|On-demand Passenger Transport Levy fact sheet||Kb|
Which on-demand trips does the Levy apply to?
When applying for authorisation, a booking service is required to register for the Levy unless they meet one or more of the following criteria:
- All bookings taken by the booking service are for journeys that start and finish outside of the defined levy area;
- All bookings taken are completed in vehicles that are equipped to seat more than 12 adult persons (including the driver); or
- All bookings taken are conducted in vehicles that are propelled wholly by electricity.
In addition, if a booking service solely takes bookings for weddings, balls, funerals, tours or other special events in luxury or vintage vehicles, they may apply for an exemption by completing the ODT104: Application for Exemption - On-demand Passenger Transport Levy form. Bookings that relate to a service for journeys to or from an airport, or that are provided for business purposes are not considered special events.
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.
A booking service may undertake a combination of leviable and non-leviable trips. Booking services such as these will be required to register for and pay the Levy, if they expect to conduct any leviable trips.
|ODT104: Application for exemption - On-demand Passenger transport levy form||Kb|
What happens if a booking service fails to pay the Levy?
If a booking service fails to pay the Levy, their authorisation may be cancelled and their operations will cease. This means that booking services will no longer be able to provide work to drivers.
DoT may monitor 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.
How to calculate the Levy
The Levy fare is to be based on the metered fare, or the contract fare agreed with the passenger, prior to the imposition of GST on those amounts. 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.
Most other fees that may be imposed in connection with the passenger transport service, such as cleaning fees and airport charges, will be excluded from the Levy fare.
The following amounts are included in the Levy fare:
- Base or minimum fare;
- Callout charge;
- 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:
- 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.
For fares where a taxi meter has been used, the following items are to be included in the Levy fare:
- The metered fare amount;
- Any callout fee, guaranteed booking fee or surcharge set out in the Taxi Regulations fare schedule; and
- Any other amount payable for the service that is not listed above as an exclusion.
The same exclusions as above apply to the metered fare.
Please note, if the booking service chooses to pass the Levy onto customers (for example, as an addition to their fare), the Levy will attract GST.
A three-step formula is used to determine the Levy fare where the service is provided as part of a multi-service contract:
Calculate the percentage that the relevant Levy assessment period is of the multi-service agreement length.
Example: If the agreement period was 365 days and the relevant assessment period was 91 days, the percentage would be 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.
Example: 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.
Example: 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.
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.
|Transport (Road Passenger Services) Act 2018|
Resources for registering to pay the Levy
Please refer to the below documents and forms when completing the Levy registration module of the application for ODBS authorisation in DoTDirect.
- ODT104: Application for Exemption - On-demand Passenger Transport Levy form
This form is to apply for an exemption from paying the Levy from 1 April. This is for booking services that solely provide on-demand services for weddings, balls, funerals, tours or other special events in limousines or other luxury vehicles. Bookings that relate to a service for journeys to or from an airport, or that are provided for business purposes are not considered special events.
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. Please note completion of this form does not constitute an approved exemption.
- Direct Debit Request Service Agreement: On-demand Booking Services - Levy Payments
|ODT104: Application for exemption - On-demand Passenger transport levy form||Kb|
|Direct debit request service agreement: on-demand booking services - levy payments||Kb|
Lodging a Levy return
Booking services will report and lodge their Levy payments via their DoTDirect account.
Returns must be submitted on either a monthly (for an ODBS authorisation of more than 50 vehicles) or quarterly basis (for an ODBS authorisation of 50 or less vehicles).
A Levy lodgement user guide is available below.
What information needs to be provided to lodge a Levy return?
To complete a Levy return, booking services will need to provide the total number of individual relevant journeys undertaken in the assessment period:
- With a “Levy fare” of less than $100, as well as the total value of the Levy fares charged for those journeys; and
- With a “Levy fare” of $100 or more.
How is the Levy paid?
During the Levy registration process, booking services will be required to nominate a bank account. This will be accessed by the Department of Transport to direct debit the required levy payment as reported by booking services.
What rights do booking services have in relation to a reassessment, objections and review of the Levy?
Booking services have a right to apply:
- for a reassessment of the Levy;
- to object when dissatisfied with a levy assessment or a decision that affects their liability for the Levy; or,
- if booking services are dissatisfied with the outcome of an objection or other reviewable decision, an external review by the State Administrative Tribunal.
The Levy lodgement user guide contains more detail about these processes.
|User Guide: On-demand Passenger Transport Levy||Kb|