Why Taxi Drivers Are Making So Much Fuss?

Ash-Say on 10/09/2015 - 12:17
Last edited 10/09/2015 - 13:15

I read an article http://www.smh.com.au/national/taxi-strike-cabbies-across-au… on SMH this morning and it is very annoying to see this attitude.

I personally know at least 12 taxi drivers who make more than $150K per year but they pay less than $1500 tax and they also claim Centrelink payments for being low income earner. From what I understand, majority of taxi income is cash intensive and therefore there is no paper trail.

I personally always pay cash for taxi use as credit card attracts high fees and I assume all other Ozbargainers are in the same boat.

Is this fuss all about the competition where Uber is taking away business from the taxi drivers?

If taxi drivers cry about Uber being illegal then isn’t tax evasion and not declaring the correct income also illegal?

Poll Options

  • 97
    You pay cash for taxi use
  • 93
    You pay taxi via credit card
Education & Work

Comments

    • cktftw on 10/09/2015 - 18:20

      yes

    • nephilim on 10/09/2015 - 18:40

      My old trick on friday/sat nights was to flag down random taxis when going into the city, only took 2-3 cars for 1 to agree to a flat fee. $10 to go for a 20min ride into the city.

    • Eivad on 11/09/2015 - 13:39

      It has been reduced to a 5% surchage (at least in NSW) for a number of months now.

    • DealzEddy123 on 11/09/2015 - 15:22
      -1

      nothing wrong with a CC surcharge as long as it's transparent.
      It's your choice whether you want to pay for it or not.

      • ChickenTalon on 11/09/2015 - 15:33
        +2

        There is a lot wrong with it when the government sets the price of the service. And then cabcharge uses its monopoly powers to limit choice.

      • mobius on 12/09/2015 - 08:21
        +2

        Yeah kind of is when you hand over a $50 and the Taxi driver doesn't have the correct change.

        • plasmoske on 12/09/2015 - 11:59

          Bastards get me every time with that.

          That's why I think uber is superior. No excess charges. No finding change. No taking the slow way around to maximise fare. No talking to your family overseas on the hands-free.

        • DealzEddy123 on 12/09/2015 - 18:02

          then you don't have to pay him. I would just get out of the taxi. His responsibility to ensure he has enough change.

          You are not obliged to pay with a card.

  • pjetson on 10/09/2015 - 21:09
    +17

    I drove taxis in Melbourne quite some time ago, and I call bs on the figures quoted here.

    Basically, there was a 50/50 split on the fare between the taxi company and the driver. I drove mainly night shift, 6pm to 6am. Only Friday and Saturday nights were worth the effort. It's impossible to have a fare for much more than about half the time you drive, usually a lot less. Even if you get a good fare somewhere, say from the city to the outer suburbs, you'll be lucky to get a fare back. Best advice was to get into the city or inner suburbs and/or stick to the tramlines.

    A fare to the airport was good but infrequent, and then you might be stuck there for hours earning nothing and then only get a local fare.

    So, for a $50 fare, the drive:r would get $25 less whatever tax you choose to pay. And if you don't pay tax, you'll be in big trouble when they eventually catch up with you (and they will).

    Other negatives are violence and theft, people vomitting in the cab, and fare run-offs. All cost the driver at least time, and usually money.

    • aboabo on 11/09/2015 - 22:05
      +1

      Never seen vomit bags in taxis. Never seen anyone throw up on an airline flight.

      • momov3 on 11/09/2015 - 22:30

        I once sat next to a lady who threw up all the way to London. There were enough vomit bags for her for sure. She musn't have known about air sickness pills.

    • blitzzbargain on 13/09/2015 - 10:20

      Well explanation. I totally agree!

  • PVA on 10/09/2015 - 22:43
    -1

    uber doesn't have the security either, no cameras taking pics every 2 seconds, no video, no emergency call button.

    • Cyphar on 11/09/2015 - 10:52
      +6

      Uber records the details of both driver and passenger. If something happens, they know who you are.

      • hayne on 11/09/2015 - 14:44
        +4

        Not only that, but you have an issue, Uber gets back to you quickly and resolves it. Good luck if you ever hear back from a cab company. Examples - cab driver accepts job and doesn't show up, cabbie illegally charges you the Maxi-cab rate even though you didn't request a Maxi-cab, cabbie's credit card machine doesn't work but he leaves the meter running and then charges you for the time it took to get his machine to work.

        The cab companies have an antiquated, broken business model and got fat and lazy reaping healthy profit margins while treating their customers like dirt (the 10% cabcharge credit card surcharge being a great example of that). Now Uber, Gocatch and others are turning this model on its head. Good for them.

        • Flying Ace on 14/09/2015 - 16:56

          Would it also be fair to say that Uber would be less likely to attract riffraff too? You have to be a little tech-savvy to use it (downloading an app and signing up) and it would be less likely that those who are drunk or would be more likely to cause trouble in a regular cab would go to the "trouble" of using Uber?

        • eug on 14/09/2015 - 18:43
          +1

          @Flying Ace: That's what an Uber driver in the US told me. He prefers driving for Uber because the people who use it are "more educated".

  • no user information on 11/09/2015 - 09:18
    +9

    I cannot believe where OP got his ~150K per year figure from, they would be lucky enough to make half that.
    Yes I agree some of them would claim centrelink payments and pay less than 1500 tax, but they work 12 hr a day shifts for 5 - 6 days. How do you compare them to someone getting paid 75K per year and working 38 - 40 hrs a week.
    How is this any different to all small take away restaurants, grocery shops, and anyone working cash in hand paying no tax and getting centrelink payments.

  • [Deactivated] on 11/09/2015 - 09:29
    +6

    Cabbies are scared of the competition.

    The system that cabbies use is so old and the actual costs of plates is crazy as well and also the change that they need is scaring them to compete with the system that uber use.

    I for one am for uber in competition but I think if it was legal it would wipe the floor clean of taxis period.

    • DealzEddy123 on 11/09/2015 - 15:20
      +6

      I'm all for Uber going legal. As long as they are held to the same standards taxis are in terms of insurance, taxation, training etc.

      • ChickenTalon on 11/09/2015 - 15:36
        +5

        I hope Uber never sinks to the same standards as Taxis!

        Uber cars are cleaner, their drivers receieve feedback on their service and they don't last long if they're rude or smell etc.

      • [Deactivated] on 11/09/2015 - 18:23

        No I hope uber don't go down the taxi path as it will result in shit service.

        Uber is the way taxis should be now with all the new tech they are still in the stone age

  • bocca on 11/09/2015 - 10:01
    +2

    I'm going to call BS on $150k

    "According to the agency which sets taxi fares in NSW, a taxi driver takes home a measly AUD 29,000 a year. That’s down from AUD 47,000 not so many years ago."
    http://www.abc.net.au/radionational/programs/backgroundbrief…

    • bobbified on 11/09/2015 - 10:14
      +14

      I believe that it should read.. a "measly AUD 29,000 a year PLUS cash fares and tips".

  • Brendoo on 11/09/2015 - 12:47
    +10

    The fact remains, what UberX is doing is illegal. Sure, Uber is paying fines and court costs for any drivers who get busted, but it's still illegal.

    I'm all for competition and progress, but not when some company, foreign or not, decides they are going to take the law into their own hands and do whatever they want. It's just not right.

    Like someone opening a pub next to another but without a liquor or gaming license and sends the pub next door broke. I'd be pissed too because it's illegal. Obviously the govt would shut that one down fast.

    If the govt changed the law (in NSW) then no problem whatsoever, it's good old competition. But right now it's the law and we live in a country that is pretty good because most people follow the law. I'd hate to see that change.

    In saying all that, it does seem like the govt is turning a blind eye here. I am not hearing about UberX drivers getting busted every day (I think i read the fine is $110k or something like that) so maybe they are poised to make this legal? Fine by me, I hate the cost of Sydney cabs and the difficulty in getting one most of the time. But this needs to be legal.

    • [Deactivated] on 11/09/2015 - 13:31
      +7

      But what about when Govt laws are truly stupid or tyrannical ?

      Should we as individuals or in groups (companies) just sit back and go 'OK THEN, BECAUSE THIS GOVT MADE THIS LAW WE WILL SIT BACK AND ACCEPT IT' ???

      Of course in this case UBER is just another for profit venture pushing the limits and beyond. But as has been said it is giving many people access to cheaper cab fares and providing extra income for people who need it.

    • cheng2008 on 11/09/2015 - 16:51

      "But right now it's the law and we live in a country that is pretty good because most people follow the law. I'd hate to see that change."

      You haven't seen this then I take it?

      http://mumbrella.com.au/australia-leads-way-illegal-download…

      • mobius on 12/09/2015 - 08:23

        Rubbish how is it illegal? If it were it would be shutdown tomorrow.

        And getting busted for what?

  • [Deactivated] on 11/09/2015 - 13:26
    +5

    lol. yeah cabbies make 150k per year and you 'personally know' 12 that do. hahaha

    • Ash-Say on 11/09/2015 - 13:34

      Are you taxi driver in melbourne?

      • hayne on 11/09/2015 - 14:54
        +4

        No, but @pjetson WAS - scroll up.

        It doesn't take a lot of skill with back of the envelope maths to know the average driver isn't taking home $150k.

      • cheng2008 on 11/09/2015 - 16:53
        +1

        Have you thought about the possibility that these guys raised their figures so they could brag to you?

  • TailsK on 11/09/2015 - 13:54
    +4

    Illegal or not, if taxis weren't so awful, people wouldn't be flocking to alternatives like UberX.

    • usman6062 on 12/09/2015 - 11:54
      -1

      Unfortunately, that is true. However, this approach is not right to let an international company capture a market.

      • Lysander on 12/09/2015 - 13:31
        +1

        What is wrong with an international company? I do not understand that nationalism BS.

        Don't people in Australia let international companies capture markets everywhere? Think Apple, Samsung, Lenovo, Acer, Holden (US owned, not Australian), Ford, Miele, Bosch, Hilti, HP, Jack Daniels, Jim Beam, Smirnoff, Topsho, Zara's, H&M, Sony - need I go on?

        All the things that Australians love dearly like their PC, consoles, smartphones and cars are made by international companies and from 2018 solely made abroad.

        If you really want to be Aussie, only buy Australian made and owned things but you will have to go without a car, phone, PC, and virtually all kinds of clothes.

        Good luck.

        So enough already with the "We cannot let international companies be the market leader in Australia. We should buy Australian." Imagine the rest of the world would think so. Goodbye to trade of any kind, including resources.

        The world is competitive. Offer a great service and great value for money and you will succeed. If you don't you will fail. It is that simple.

        • usman6062 on 12/09/2015 - 18:56
          -1

          It is not about nationalism.
          The reason why UBER is becoming popular is because the taxi drivers and taxis were not doing good enough. Therefore, the vacuum/market created is being captured by UBER.
          What I meant is that the government should improve taxi industry standards just like there is black cabs in UK.

          Lastly, I am a Aussie and would like to use Australian products. This is not what I need to learn from anyone.

        • Lysander on 12/09/2015 - 19:05

          @usman6062:

          As I said: good luck using Australian phones, cars, computers etc.
          Please let me know when you find any.

          I do agree with regulation though. However, if the cabbies here are not doing good enough (for various factors) they have brought it upon themselves.
          It is NEVER a good idea to protect the market through regulation as it prevents the industry from becoming competitive whenregulation falls and then it really hits.
          France just learned that lesson fairly recently.

  • Cluster on 11/09/2015 - 14:21
    +2

    I see that a certain number of taxis have received expensive modifications to allow wheelchair users with profound disabilities to be carried as passengers.

    How many UberX cars have been similarly modified?

    • Japius on 11/09/2015 - 14:44

      And that's why taxis shouldn't be complaining. Uber does not operate in the majority of areas that taxi services do. No rank work no street hail no disability etc etc. 70% of a taxi companies work comes from areas that uber does not compete in

      • PVA on 11/09/2015 - 15:36

        They do go in ranks, Gold Coast airport, casino rank. And wait there and get the 1500 fine.

    • hayne on 11/09/2015 - 14:52
      +2

      They already have this in the US.

      http://newsroom.uber.com/philly/2014/09/your-wheelchair-acce…

      In fact, I rode in one in New Orleans.

      Not only that, you can request Uber cars with baby seats as well. All at the click of a button.

      So hopefully the regulators get their heads out of their @rses and Uber continues to take off in Australia, because once they do, you'd expect them to expand their UberX fleet in the same way.

  • cktftw on 11/09/2015 - 15:07

    150K is unlikely tbh..
    But cash job, pay little or no tax - tells gov unemployed and get welfare allowance on top of that (not to mention the wife is most like on welfare already with a few kids)
    So much win

    • Ash-Say on 11/09/2015 - 15:22

      Exactly!!

    • usman6062 on 12/09/2015 - 11:57
      -2

      you are just making it up mate. You think Taxi drivers are dodgy & shifty. Get educated.
      I have heard many times people saying cabbies are life savers. I am sure you must have said someone.

      • cktftw on 12/09/2015 - 20:41
        +1

        So now cabbies are life savers as well..wow
        Is that why they charge the exorbitant fees?

      • Ash-Say on 12/09/2015 - 20:55

        Yes taxi drivers are dodgy and tax evaders!!!!

        • usman6062 on 12/09/2015 - 22:12

          Really surprised by your opinion. Wondering if you still use cab? I am sure you won't. coz a normal person won't always get into same thing which is ripping him off, dodgy & shifty.

    • momov3 on 12/09/2015 - 13:17

      But they aren't the only profession to do this. Many other cash in hand jobs can easily under declare income and mind you, they also get Centrelink allowances in exactly the same way plus their wives may all also be on those benefits A and B etc…. and speaking of which (different topic altogether) what about the LEGAL loophole allowing middle income to extremely wealthy people negative gear and then they don't end up paying their share of tax, and even more, they manage to devise their investments holdings so they are still entitled to Centrelink? I don't see how one is much different from the other, apart from the fact, the legal loophole one justifies our government turning a blind eye to what is actually 'lost' income tax revenue.

  • DealzEddy123 on 11/09/2015 - 15:18
    +1

    I caught an Uber into town today and a taxi back.

    Uber ended up $15 and Taxi ended up being $15.50

    There wasn't much difference in price, for people who think Uber is cheaper.

    I'm not trying to say which is better, but purely from a cost perspective

    • PVA on 11/09/2015 - 15:37

      Last taxi I took at rhe airport had set rates. Told me the rate is cheaper than user in peak times.

      • DealzEddy123 on 11/09/2015 - 15:59

        na in NSW there's no set rates. It's always by the meter.
        The airport also has a $4 surcharge but that's charged by the airport, not the cabby.

        • [Deactivated] on 11/09/2015 - 18:58

          I was in a taxi a few weeks ago - trying to get to Central (Sydney) to get the train to the airport. Driver offered me a flat $20 to airport once he realised where i was heading. I took it.

          Not sure if legit, but that's what's happening out there.

          I'll be the one making the suggestion next time…

          The driver on that occasion claimed he paid a set rate each shift to the plate owner, and then it was up to him to try to recover that before he actually starts making any money.

          BTW some of the drivers (esp South Asian) are always on the phone to either each other or their mummy back home.
          Makes the trip more dangerous due to the distraction, even though they're wearing a earphone.
          Some twat wouldn't stop it recently so i told to him to pull over.
          He was an aggressive little bastard - forgot to lodge a complaint.
          Now i always ask before getting in the taxi what their phone policy is - they can go kill someone else with their culpable driving.

          I genuinely suspect Uber drivers are more likely to be safer on the road.

        • DealzEddy123 on 11/09/2015 - 19:06

          @steamtrain: $20 is cheap as. (but what he was doing is illegal)

        • [Deactivated] on 11/09/2015 - 19:20

          @ed123:

          Yep, it sure was.
          No doubt he was seeking a fare from the airport.

          There is a serious issue with Uber in case of injury though, and certification of drivers.
          I've yet to use them because of this.
          They're a big heavy corporate with big bucks behind them - the withdrawal of charges against drivers in NSW recently was on the basis of technical issues - the kind that they won't make next time, though they seem to have backed off.

          All you really need is decent legislation to accommodate the new players now that they are here, as it's currently wild west.
          NSW government should pull their corrupt little finger out.

        • DealzEddy123 on 11/09/2015 - 19:29

          @steamtrain: Yes that's what I mean. I have nothing against Uber, but they are uninsured and unregulated.

          Uber is still possible with regulation. Though it will drive up price and make it less attractive to drivers. But (most) of the regulation is to protect the public and Australian businesses (in this case the taxi industry, whether this is good or bad is another discussion)

        • usman6062 on 12/09/2015 - 12:02

          @steamtrain: I agree people have really bad experiences in taxis. However, you admitted yourself that you forgot to lodge a complaint against the driver.
          All taxi drivers are not the same. Hopefully, you will receive a professional & experienced taxi driver next time that change your mind.

        • momov3 on 12/09/2015 - 13:25

          @steamtrain: Taxi driver in Kuala Lumpur drove the entire highway journey into the city on the straight highway road with BOTH hands off the steering wheel, but dweeping on his ipad. I questioned him in Malay whether it was safe to drive this way and he laughed so hard and said 'It's OK it's a very straight road the taxi isn't going anywhere!' BTW he was going top speed at least 100 kph if not more.

        • [Deactivated] on 12/09/2015 - 16:57

          @usman6062:

          All taxi drivers are not the same.

          Oh, most are just fine.
          But there is a minority that gives the industry a bad name.

          But there's no doubt there have been some very serious crimes perpetrated by taxi drivers over the years, and one factor seems to be cultural given many drivers are new to the country.

          This article for example doesn't pull any punches, which is rare. It's not something you want to taint every driver with, but it is an environment where you are often dealing with vulnerable clients (esp. drug affected or drunk women).

          The relevance here? Well, Uber drivers tend to be a little more established and have their own car.
          Hard to be sure, but they may in fact be safer overall, despite the total lack of regulation at the moment (which needs to be fixed yesterday).

          @momov3:

          'It's OK it's a very straight road the taxi isn't going anywhere!'

          He's obviously never experienced a tyre blowout, or a roo jumping in front.
          You don't have much time to respond when that shit goes down.

        • BartholemewH on 12/09/2015 - 19:21

          @momov3:
          Precisely why we use a premium car service from KL airport. Some of the most professional drivers I've come across. When you say more than 100 in a taxi you mean 140 right?

        • momov3 on 12/09/2015 - 23:48

          @steamtrain: most definitely no danger of a roo jumping in front on a Kuala Lumpur highway. :) :) :)

        • [Deactivated] on 13/09/2015 - 00:30

          @momov3:

          most definitely no danger of a roo jumping in front on a Kuala Lumpur highway

          Pouchland, part of the National Zoo of Malaysia in Kuala Lumper, is home to a variety of marsupials including wallabies, kangaroos, and pademelons.

        • Baysew on 13/09/2015 - 13:37

          @steamtrain: Are there lots of roos jumping across the road in Sydney and Melbourne ?

        • [Deactivated] on 13/09/2015 - 14:23

          @Baysew:

          Roo, kid on a bike, another car veering out of control, someone's pet ferret - there's no shortage of options.

          Accidents happen when, you know, something unexpected happens.

    • cktftw on 11/09/2015 - 17:59

      If it's the same price, I'll take Uber every single time. At least I dont have to breathe through my mouth the entire trip.

    • mobius on 12/09/2015 - 08:23

      Did you take Uberx or taxi using Uber?

  • momov3 on 11/09/2015 - 19:39

    If they are claiming Centrelink, that means they are Aussie citizens? That's strange because I was told most of them (and pardon me but from what I saw in the demonstration photos) are 457 visa workers from India, and not entitled to Centrelink. Unless the laws have changed and these 457 workers can go on Centrelink by being on work visa. And although OP's figures may be exaggerated, it is no secret they are often paid cash and can very easily conceal true income. Which is why many tradesmen who work for me ask for cash and offer a 10% discount. I myself would only pay cash to a taximan because I am still wary about credit card fraud and handing my card number and id to a source that can be misused. Will never never pay credit even if it's a massive amount like $100 fare from my place to the airport.

    • usman6062 on 12/09/2015 - 12:03
      -1

      You are right. Only Australian Citizens are eligible for Centrelink Claims.

  • Guilty Flamez on 11/09/2015 - 20:18
    +4

    My friend's next door neighbour is a taxi driver, two years ago he bought a brand new house by paying 500k cash.

    • momov3 on 12/09/2015 - 13:18

      He bought it with casino win money….or maybe he was the mystery Tatts winner

      • Guilty Flamez on 12/09/2015 - 20:00

        May be who knows! All I know is that he is a taxi driver

    • amsaini15 on 12/09/2015 - 21:10

      @Guilty Flamez
      Your right. I know few such people as well and they also continue to claim low income benefits from government.
      Does anybody know if government is seriously doing anything about tax evasion by taxi drivers?

    • noshopping on 14/09/2015 - 08:11

      It always starts with "my friends". Also very funny how he would be gloating to all his friends of friends about paying nearly half a million cash for property. All transactions over $10,000 is recorded to AUSTRAC by law, so the ATO would be aware of your friend paying 500k cash to buy a house because the real estate agent would by law have to fill out paperwork about the cash pyment. So when the ATO rocks up, checks to see he is a taxi driver claiming benefits and looks at his tax returns over the past 3 years, he'll be in for a nice surprise..

  • r3volt on 11/09/2015 - 21:05
    +2

    dae hate the idea of cheap unregulated Labour from China taking your job but love Uber?? - This entire thread.

    Uber should be regulated or the taxi industry should be allowed to regulate itself free from control so it can compete with Uber without the overheads.

    People should be pissed at the government for creating a taxi licence monopoly and cabcharge for ripping of credit card users.

  • bargainslut on 12/09/2015 - 07:06

    I know at least 750 taxi drivers and they all make at least $3.5 million per year (Apart from Bob who is part time)

    • BartholemewH on 12/09/2015 - 19:26

      Poor Bob, he's never been the same since the Buffalo Bill incident.

  • usman6062 on 12/09/2015 - 11:50
    +4

    @bluecasper
    I am surprised that Taxi driver earns 150k+ every year…..this is a joke mate!!

    I have driven cab for more than 2+ years. So whatever I shall state below is from my personal experience.

    1. First you can not earn 150k+ in 1 year. If you drive a cab continuously for whole year without getting sleep, eat, piss and any break, you will be lucky enough to earn 100k.

    2. You need to consider the amount of hours you put in to earn $$ in cab industry.

    3. The average income is $10-$15 per hour in taxi industry.
    4. This is a false statement that Government receives $1500 tax from a cabbie. Taxi Services Commission charges $25000 every year which is separate from the tax paid to the government.

    Now comes to UBER…Why Government can not legalize UBER.

    1. Uber Black is legal and permitted in all over Australia.
    2. It is Uber Black for which Cabbies are making FUSS according to you.
    3. Taxis are regulated by Australian Government whereas Uber is a private company and not regulated by government.
    4. One Taxi pays nearly $50000 per year to the government (nearly 25000 to TSC per year) . Uber pays nothing.
    5. Uber is an international company and takes the revenue overseas without paying proper tax.
    6. All Uber-X drivers have private comprehensive insurance which states the car should not be used for commercial purposes.
    7. You are liable for your own life/claims if you have an accident in Uber-x. Taxis are different. You can claim work cover etc easily. Hopefully never happen to anyone.
    8. Taxis have navigations installed in their cars and keep track of your journey. It is just the matter of asking them. Whereas Uber send you an email.
      9 Taxis have Cameras installed in their cars , make more secure for a rider for journey.

    Now, I understand and completely agree with people having their really bad experiences in taxi. Unfortunately, it is true & and it is still happening. Many people have been denied for short fares etc. But the right way to stop this is to get the rego of the taxi and report it to Taxi Services Commission. Since Last year, Taxi Services Commission has made remarkable changes in taxi industry & filtered the good/experienced drivers from the bad ones.

    Note: I worked as a Taxi driver in past & have Uber-x driver account active.

    • Lysander on 12/09/2015 - 13:41
      -1

      Most of your arguments are good, except 5 which is another nationalist bogus argument. All companies do that, including the Aussie businesses making money overseas and bringing their profits back to Australia.

      And top of the list is Apple there. Maybe Australia should not buy Apple products for a whole year in protest. That would show them.
      It really is a matter of tax law. Write t your MP to urge him to change the law, organise protests regularly, set up a movement for the benefit for Australians (maybe "Australian movement for the right of Australians to exclusively exploit tax loopholes") etc.
      Then I believe you really care.

      • usman6062 on 12/09/2015 - 18:08

        I would take a different approach to that. The govt should pass legislation for overseas company with proper % on revenue & target getting tax from big fishes.

        • Lysander on 12/09/2015 - 18:47
          -1

          Agree. But the problem I have is that for many people here it seems OK if an Aussie company does the same overseas as then they bring money to Australia which people see as benefiting the country. But as soon as international companies do exactly the same thing everybody is upset.

          So in short: it is OK if Aussie company exploits loopholes overseas but it is not OK if overseas companies exploit loopholes in Australia.

          I do NOT agree with it. Same rules for everybody. Being Australian does not get you special treatment.

          I would be inclined to think you are a bit against overseas companies.

          The amount of money lost by Aussies (you and I) exploiting loopholes is much larger than anything the big companies do. Maybe start with the bigger sum then and have the ATO ensure ordinary people do not exploit loopholes and cheat the taxman, right?

      • noshopping on 14/09/2015 - 08:18
        +1

        WRONG WRONG WRONG. You guys have no idea about tax laws. Only US companies are allowed to dodge international taxes. If they don't repatriate international income back onto US soil, they don't pay any US taxes. If an Australian company makes profits overseas, by law they need to pay tax in Australia. The difference in laws between the two countries allows US corporations like Apple, Google, Uber, Facebook, Microsoft, etc to store vast sums of profit offshore without ever paying a penny of tax. Australian companies cannot do that!!! and before you say but BHP/Rio Tinto do that…. BHP, Rio Tinto are foreign owned companies whose parent entities are not registered in Australia. E.g. The structures they register here are 'sub-entities/divisions'.

        • Lysander on 14/09/2015 - 11:40
          -2

          1. Look up BVI and Cayman Islands and then tell me why they are so popular with banks and tax lawyers?
            My colleagues specialising in that area in Australia are very busy as Australian corporations and companies also play that game.

          2. You have just proven the point. All that an Aussie company (owned by Aussies, founded by Aussies, run by Aussies) needs to do is to register the formal structure elsewhere and voila - Australia loses out in tax. So, the companies circumvent Aussie law and tax bu simply just registering a sub-entity here while formally having their HQ and incorporation elsewhere. That really is soooo much better than Google etc.
            They are ALL to blame.

          3. Don't blame the companies. They are applying the law of their country. If Australia had those same laws you can be certain all the companies would be doing it as well. If you want to blame anybody, blame your government for not being as nice to its companies and corporations as the US is. You cannot force the US to change its laws. You can only change Australian laws and if that is not done properly the US will retaliate (see tariff war)

          4. The U.S. is by far not the only country. Ever heard of a double-dutch construction? Looked into Ireland's laws?
            Those are the two most popular jurisdictions used in conjunction with the US laws. There is a reason lawyers can make a lot of money with this stuff as it is not that straightforward and requires knowledge of laws of several jurisdictions, not just US law.

  • momov3 on 12/09/2015 - 13:21
    +1

    When I didn't know better, I paid driver $20 for a short journey, and you should have seen the dragon smoke spewing out of his eyes and ears. He was livid with rage. Another time, my mom hailed a cab and sat in a taxi that was manned by a drunk reeking of alcohol. She came home in tears and didn't have the presence of mind to jot his license plates.

  • Faulty on 12/09/2015 - 13:39
    -1

    $150k per year? Do they own and operate multiple taxis or do they just own and operate one taxi? From personal experience (my uncle being a taxi driver), his gross income is approximately $90,000. After expenses such as plate lease, insurance, radio costs etc which amount to $60k/year, tax, he ends up with a net income of $25k-30k. These figures were before the introduction of Uber.

    After the introduction of Uber, his net has dropped to $17-19k/year. Now considering this, it is sort of hard to make ends meet.

    • amsaini15 on 12/09/2015 - 21:17

      That is what taxi drivers are showing to ATO. What about cash in hand income which he probably never told you?

      Do you think he would be driving taxi for $17-$19K/year? Dont think so.

      Yes taxi driving is hard work just like any work but tax evasion is the problem here.

      • Ash-Say on 12/09/2015 - 21:38

        $19k per year for taxi driver..lol..Joke of the centruy.

  • Hirolol on 12/09/2015 - 15:25

    i dont understand how Taxis in victoria can charge 10% if paying by credit card, that is the biggest load of BS.

  • [Deactivated] on 12/09/2015 - 15:27
    +1

    I think cabbies are pissed off because they are bound by a whole bunch of regulation that doesn't apply to Uber despite Uber offering an essentially identical service. It seems odd to so heavily regulate one service but have essentially no regulation upon another identical service.

    I think the Taxi industry could improve in some ways. Sometimes drivers are great, some don't even know common addresses in neighboring suburbs. Cabcharge seems like a racket, and some of the licenses cabbies have to pay seem insanely high.

    • ribze1 on 13/09/2015 - 00:07

      Good post.

  • freakitude on 12/09/2015 - 15:32
    +4

    op is full of crap spreading lies like this saying taxi drivers make $150K per year.

    i know at least 10 cabbies all silver service drivers, struggle to make 1000 bucks a week after tax by putting in 50+ hours.

    cabbies don't have issue with uber, all they want is a level playing field. why should uber be allowed to bypass all the rules and regulations that cabbies need to follow.

    Cabbies need to be accredited, need to meet the standards which are set by the taxi services commission and the dispatch companies. I know people who failed navigation assessment multiple times when doing taxi driving course before finally getting it right. You fail it multiple times you get flagged and need to get mandatory lessons in navigating using street directory. Nowadays anyone with licence can join uber and learn on the job.

    Cabbies need to pay for taxi licence which is about 25K per year and regular inspections by taxi service commission finding small fault putting cars off road for multiple days, no one to check uber cars.

    Also there is roadworthy every year that you don't need that in uber.

    You also need to pay the dispatch company a fee to have the dispatch system installed, a cab cant be on road without it, but uber can.

    then there need to be emergency alarms, safety cameras etc which uber don't need.

    • amsaini15 on 12/09/2015 - 21:15

      You have missed the point mate. Its not much about how much they ear but tax evasion. They are able to take money overseas, buy houses outright with cash, claim low income benefits, etc etc when they shouldn't be and government should be closing the loophole.

  • DiscoJango on 12/09/2015 - 18:05

    havent used uber yet, but i know a taxi from my house to the airport is around $200 (about an hours drive)

    thats a lot of money, regardless if the company is footing the bill

  • ribze1 on 13/09/2015 - 00:06
    +1

    My girlfriend's dad is a taxi driver in Sydney.

    He works 12 hour shifts, 6 days a week just to provide for his family. They live in the West and are paying off a modest house and mortgage. They also send money back to their family overseas.

    He does definitely not make $150k/year. If he makes half that i'd be surprised.

  • razorack999 on 13/09/2015 - 04:49
    +2

    The only reason they are complaining is the 350k they played for their plates- and all that came with it. For YEARS that was a huge positive.
    MONOPOLY
    PROTECTED

    This sounds like the ACCC should investigate.

    If not for the plates then guess what- they would be driving for UBER. Except that their cars are inferior because they have driven them into the ground- you guessed it driving and earning their huge protected profits.
    Squeal like pigs if you like. Your little game is up. The obvious answer is to develop your own app and COMPETE RATHER THAN HIDE BEHIND YOUR OLD PROTECTIONIST MONOPOLY. The Music industry hid behind their old business model and didnt adapt. Guess where that ended. Ditto for Newspapers
    There are many incidences of businesses paying large licence fees to earn protected profits eg Chemists Newsagents. Then their business model changes and their protected profits leak away. Its exactly the same for Taxis.
    REMEMBER they all have the option of joining UBER but they dont want to.
    But they will start to shift across eventually. Once that happens there will be LESS TAXIS . But there will always be at least for the next decade a lot of (older ) people who will always call a taxi, rather than UBER those taxis will be doing OK.

  • DiscoJango on 13/09/2015 - 08:56

    same thing happened when the doller was parity, all of a sudden the local retailers who had a huge monopoly (harvey norman, dick smith etc) now faced some real competition from cheap overseas internet sales, so they go on tv and cry poor

    as a consumer, personally i dont care that your taxi platex cost $400k, and you pay $6000 in insurance a year, i just want to get to my destination as cheaply as possible, and if uber (in some instances) can be 50% cheaper than a taxi, then hell yeh im going to use that service

  • Flowerbomb on 13/09/2015 - 12:12

    I'm all for uber as long as there is no tax avoidance. Why should we let these international companies rob us without paying company tax for providing services in Australia?

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