The government has outlined its plan to deliver a further $500 million to licence holders, on top of $145 million in payments already doled out.
The compensation for taxi licence owners was in response to the rise of rideshare apps like Uber that disrupted the industry despite not being strictly legal when the services were introduced to the market.
Rideshare and taxi passengers pay a one-dollar Passenger Service Levy in NSW to fund compensation for the taxi licence holders, and the scheme will be extended a further two years until June 2029
Taxi licence owners in Sydney could claim up to $600,000, made up of $100,000 for each licence with a six-licence cap.
Outside the capital, owners will be able to secure $130,000 for each licence, with no limit on the number, Treasurer Matt Kean said on Wednesday.
The government needs to pass legislation through parliament to remove taxi licence supply restrictions before the compensation comes online.
The package will fully deregulate the industry.
"This will create a level playing field across the sector, freeing the taxi industry to better compete, while driving improved and more innovative services for customers," Mr Kean said.
Transport Minister David Elliott said people in the taxi industry had financially and emotionally suffered in recent years.
"We have acted to support them by offering financial assistance which surpasses the package proposed to the industry in September last year," he said.
Regional Transport Minister Sam Farraway said rideshare services weren't available in regional areas like they were in larger cities.
The compensation package will help regional taxi businesses move forward and continue providing vitally important transport options, he said.
The government plans to totally deregulate the point-to-point transport industry with legislation to be introduced before the end of the year.
The money will begin flowing next year if the package passes.
29°C