Victoria’s Government has announced plans to legalise Uber, which will also see taxi and ride-sharing passengers hit with a $2 per trip levy.
The Government will establish a single registration system for taxis, hire cars and ride-share services.
Premier Daniel Andrews said the State Government would do away with taxi licences and provide $378 million to help existing licence holders transition to the new laws.
It is also setting up a $75 million “Fairness Fund” to those experiencing immediate financial hardship, with $25 million going to improve access for people with a disability.
Passengers will be hit with a $2 per trip levy to fund the changes, which will apply for at least eight years.
Mr Andrews said it was appropriate for taxi licence holders to be compensated.
The government said all drivers for taxis, hire cars and ride-sharing services would also have to pass medical, police and driving history checks.