Is it time for taxis and rideshare to pay the same for compulsory third party (CTP) insurance? A review of the CTP scheme has found pricing is not equitable. It recommends they be grouped in the same class for CTP insurance.
Review of compulsory third party (CTP) insurance
The NSW Standing Committee on Law and Justice reviewed the CTP insurance scheme on 23 April 2026.
One recommendation addressed the disparity in CTP premiums between taxis and rideshare:
Recommendation: That State Insurance Regulatory Authority (SIRA) change its guidelines within 6 months to group taxis and rideshare operators in a single class for CTP insurance.
Queensland and Victoria already puts rideshare and taxis in one class for CTP insurance. South Australia will place them in one class from 1 September 2026.
Why are taxi owners concerned?
Taxis are declining –There are fewer taxis on NSW roads since rideshare operators were made legal. In rural and regional areas, this has reduced the number of taxis including those that carry wheelchairs.
Taxis pay for all kilometres travelled – While taxis pay for all kilometres travelled, rideshare vehicles pay for kilometres travelled only if they have a paying passenger.
They do the same job – Taxis and rideshare vehicles do the same job of carrying passengers but pay widely different CTP premiums. For example:
Taxi Council says:
- An urban taxi pays $5,200, while a country taxi pays $4,000.
- A rideshare operator pays $400-$700.
SIRA says:
- The average metro taxi premium is $4,913, while a country taxi pays $3,762.
These examples show a big difference between CTP premiums for rideshare and taxis.
The switch from taxis to rideshare
Two examples show taxi owners are switching to rideshare to save money.
- Jason operated a fleet of 200 taxis in Sydney. He paid:
- $5,000 per taxi for CTP, total cost $1 million
- $2,000 per taxi for workers compensation insurance, total cost $400,000.
Jason converted his taxis to rideshare vehicles. Now he pays:
- $144,000 for CTP
- Zero for workers compensation insurance.
- Jason saved over $1.2 million.
- A regional business operated 6 taxis, including wheelchair accessible, 2 hire cars and a charter bus. It switched from taxis to rideshare.
- Rideshare CTP: $769, total cost $4,614
- Taxi CTP: $2,885, total cost $17,310.
- The business saved $12,696
The CTP review says this disparity between rideshare and taxi CTP has existed for 10 years and recommends it’s time for change. It will be interesting to see whether SIRA decides to accept this recommendation.
Have your say on the Motor Accident Injuries Act
Meanwhile, a current review of the Motor Accident Injuries Act 2017 also notes the inequality in CTP premiums for rideshare and taxis.
If you are interested in contributing to a review of the Act, there are 2 ways to Have Your Say:
- Write a submission and submit to Have Your Say.
- Answer the survey through Have Your Say.
your opinion matters: