A landmark report released today by Professor Richard Holden, Professor of Economics at UNSW Australian Business School, into the taxi and ridesharing industries concluded there was no economic case for taxpayer compensation of perpetual licence holders. The report further noted that was any compensation to be paid, it should be paid from consolidated revenue and not any new levy which would ‘delay the benefits of reform’.
“This report conclusively confirms the Australian Taxpayers’ Alliance position that consumers and taxpayers should not foot the bill to bail out the taxi industry” says Tim Andrews, Executive Director of the ATA.
“As Professor Holden notes, there is no economic justification for bailing out license holders, and, even if were this to be done, it should not be done through punishing consumers with another new tax."
“The Australian Taxpayers’ Alliance has consistently argued that a failing industry should not be bailed out because more efficient competitors have arisen. We are pleased that this comprehensive report has thoroughly vindicated our position.
“Modelling underataken by the ATA has demonstrated that the NSW Government’s new tax on point to point travel will bring in over $1 billion of revenue, hurting industry, consumers, and the NSW economy. Other state governments considering legalising ridesharing should heed this landmark report and not follow NSW’s example.