TAC charge for taxi* operators change

Learn more about the change to Transport Accident Charge (TAC) charges for taxi* operators.

On 1 July 2018, the Transport Accident Charge (TAC) applicable to taxis* was reduced to align with the TAC charge paid for private vehicles. TAC charges will now be based on the registration address, as taxi* plate prefixes no longer represent the area of taxi* operation.  

Taxi* operators with “M” prefixed number plates with vehicles garaged in a TAC medium or low risk zone have been charged a higher TAC charge. 

VicRoads will be issuing refunds to eligible operators from 1 July onwards. If you are eligible, you do not need to contact VicRoads. Eligible taxi* operators will receive a refund of between $53 and $235.40, depending on the original TAC charge paid.

From now on, all M-plate taxi* operators will be charged at the correct lower TAC rate and no further refunds will be due.

Refund amounts

The refund amount will vary depending on the zone your vehicle was garaged and how long your vehicle was registered from 1 July 2018, to the date of our system updated the TAC rate.  

TAC zone Registration period Refund amount
Medium risk zone 12 months
  • 2018/19 - $53.90
  • 2019/20 - $55
Low risk zone 12 months
  • 2018/19 - $116.60
  • 2019/20 - $118.80

Please note: amounts may vary if you cancelled your vehicle’s registration at any time during these periods. Interest is not included in your refunded amount.

Do I have to apply for the refund?
No, you won’t need to apply for a refund. Any operator with an eligible vehicle will be reviewed and issued a refund. Only one refund cheque will be issued per vehicle.

Why are refunds being issued?

On 1 July 2018, the Transport Accident Charge (TAC) applicable to taxis* was reduced to be comparable with the TAC charge paid for private vehicles. This change meant that the TAC charge was based on the registration address and not the category of taxi* number plate, as plate prefixes no longer represent the area of taxi* operation. 

Some taxi* operators registered with a garage address with a TAC low or medium risk zone, were charged the incorrect TAC charge. From 21 May 2020, all TAC charges for taxis* align with the vehicle’s garage address.

Which vehicles are eligible for the refund?

This change only applies to all taxis* with a “M”-prefixed taxi* number plate (M0000-M9999). 

The system charges the correct TAC fee based on the garaged address or residential post code for the following taxi* number plates: “U”, “R”, “C (country)” & PS (peak service) or suffix - “M”.

When will I get my refund?

Refunds will start to be issued from July to October 2020 only.

How many vehicles are eligible for a refund?

There are approximately 1,000 vehicle operators eligible for a refund.

Why are some operators not getting refunds until October 2020?

Refunds are applicable for registrations and registration renewals with an effective start date from 1 July 2018. Some operators will receive a registration renewal prior to the system change for the registration period 1 July 2020 onwards. The refund will only be processed when registration payment has been made. 

If I register my taxi* now will I be charged the correct TAC fee?

Yes, from 21 May 2020, all TAC charges for taxis* now align with a vehicle’s garage address.  This is consistent with the TAC charges for private vehicles.  

Why is my registration renewal fee lower than last year?

If your vehicle was registered with a garage address with a TAC low or medium risk zone, you were charged the incorrect TAC charge. From 21 May 2020, all TAC charges for taxis* align with the vehicle’s garage address.

Why didn’t VicRoads charge the correct amount from 1 July 2018?

System changes were delayed due to the impact of other legislative changes occurring throughout 2018 and 2019 including Drink Drug Drive, remaking of the Road Safety (Drivers) Regulations 2009 and changes required for the National Heavy Vehicle Regulator.

I cancelled and re-registered my Taxi* – will I get a further refund back to 1/7/18?

All eligible vehicles will be reviewed, and refunds issued even if the registration has been cancelled. The refunded amount may be less if you have previously received a refund.

*Note: A taxi is a commercial passenger vehicle providing booked and unbooked (rank and hail) services.

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