Business
12 November, 2026
Insurance not the only issue facing taxi operators: Minister
NSW Minister for Transport John Graham has acknowledged that insurance costs are hurting regional taxi companies but says the issue is ‘complex’ and is being compounded by fuel costs.
NSW Minister for Transport John Graham has acknowledged that insurance costs are hurting regional taxi companies but says the issue is ‘complex’ and is being compounded by fuel costs.
The issue was raised in NSW Parliament on Thursday by Liberal MLC Natasha Maclaren-Jones in direct response to the recent closure of Southern Highlands Taxis.
Mrs McLaren-Jones said the company had been forced pull its cabs off the road – leaving more than 50 people out of work and residents struggling to get around.
She asked why the government hadn’t acted on the findings of a 2025 review of the Compulsory Third Party Insurance (CTP) insurance scheme which found a significant disparity between the premiums paid by taxi and rideshare operators, despite both providing point-to-point transport services.
Mrs McLaren-Jones said taxi operators across the state were paying “exorbitant” CTP costs and warned that more services would be forced to close.
The NSW Parliamentary Committee which carried out the review recommended that taxis and rideshare vehicles be grouped into a single class for CTP insurance, as already occurs in Queensland and Victoria.
The Committee found that country taxis can pay around $4,000 per vehicle in CTP insurance, while rideshare operators may pay between $400 and $700.
It also warned of an ongoing decline in taxi services across regional NSW, including impacts on wheelchair-accessible transport and services for vulnerable communities.
Mr Graham said the NSW Government had been working with the NSW Taxi Council on the CTP issue and had introduced a number of measures to help taxi operators facing fuel cost shocks.
The Government announced a $2.3 million point to point industry relief package in August to help operators manage rising operating costs.
Mr Graham said his own concerns were shared by Minister for Regional Transport, Jenny Aitchison and congratulated the NSW Taxi Council for “stepping up” and helping to resolve the issues.
The NSW Taxi Council says insurance now represents up to 8.9 per cent of all costs for taxi operators – the fourth highest cost category behind driver labour, lease costs and fuel.
It says those costs are ultimately forced onto customers through increased fares – which in turn has contributed to reduced affordability for passengers who rely on taxi services.
The 2025 Review of the Compulsory Third Party Insurance Scheme, undertaken by the Standing Committee on Law and Justice, found the inequity in CTP premiums had contributed to an ongoing decline in taxi numbers across NSW.
The Committee tabled its report in April this year.
Its first recommendation was that the State Insurance Regulatory Authority finalise changes to the appropriate guidelines “within six months of the tabling of this report”, grouping taxis and rideshare operators in the same classification for CTP insurance.
“This disparity has been in place for over 10 years; it is time it is solved,” the Committee said in its report.
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