Soon, the hefty taxi fares from Sydney Airport could be a thing of the past, thanks to a strong recommendation from a key pricing regulator to set fare limits for journeys to and from the busy airport.
The Independent Pricing and Regulatory Tribunal has advised the NSW government to implement a maximum fare of $60 for standard taxi rides from the airport to the CBD, and $80 for larger maxi taxis.
This flat fare system will be tested for two years and will apply only to trips heading to destinations with a 2000 postcode.
These fares will adjust annually according to the consumer price index starting in July 2026. This proposal aims to eliminate the inconsistency in fares, as some travelers report paying $50 while others are charged up to $100.
Nick Abrahim, the chief executive of the NSW Taxi Council, expressed support for the fare caps, stating they would guarantee “reliability and consistency.”
He mentioned, “We feel disappointed when we hear of overcharging or when drivers fail to use the meter.”
“Our goal is to resolve these issues so that passengers can feel assured about their fares.”
He also highlighted how the fare caps would benefit Australia’s tourism sector.
“Tourists come to enjoy our country, and we want them to have a wonderful experience,” he said.
“We don’t want them to leave with stories of being overcharged or having a negative experience.”
Initially, IPART proposed a $55 cap, but after discussions, drivers suggested $65 instead.
Mr. Abrahim stated that while the council supports the $60 trial, it should be evaluated to ensure it balances driver income and passenger affordability.
“There should be some flexibility,” he remarked.
“Is $60 the right amount? We must ensure it is sustainable for drivers.”
In addition to the airport fare cap, IPART also suggests increasing maximum hire and on-demand rates for drivers based on various situations.
Nighttime rates in urban areas might increase from $2.73/km to $3 for the first 12km, reverting to $2.73 beyond that distance.
Charging for hires is likely to rise from $3.60 to $5.
John Graham, the NSW Transport Minister, is reviewing these proposed rates.
If accepted, the new pricing structure will take effect from July 1.
These proposed changes come as taxi drivers face heightened competition at the airport from rideshare services, including Uber.
Back in 2018, taxis represented 57 percent of airport pickups and drop-offs, but this figure plummeted to just 27 percent by June 2024, according to airport statistics.
Passengers can now book Uber rides near the southern end of the T1 taxi area.
