Taxi drivers

Taxi drivers will take home more with a new announcement from the South African government

South Australian taxi drivers are set to earn more pay, with the state government today allowing a 6% fare increase.

The increases, which will be the first for the industry since 2016, will come into effect at the end of this month and are designed to address the financial shortfall that taxi drivers currently face at the hands of ride-sharing services and rising Cost of life.

According to estimates, the cost of a 5km trip in metropolitan Adelaide will increase by 90 cents.

Infrastructure and Transport Minister Tom Koutsantonis said raising maximum taxi fares would support the taxi industry by increasing the revenue-generating capacity of taxi operators to meet overhead costs.

“The industry has convincingly demonstrated that it is struggling to meet operating costs and attract drivers – the problems it has faced being exacerbated by rising fuel prices in 2022,” said he declared.

“Taxi drivers haven’t seen their take home pay rise for six years – their wages have languished.

“It is one of the lowest paid sectors in South Africa and the state government is obliged to give these workers a chance to earn a fair wage.”

Tom Koutsantonis MP outside Parliament. Photo: Matt Turner

The increase is expected to have minimal impact on South Australia’s Transport Subsidy Scheme, under which disabled access to taxi travel is subsidized, currently up to a maximum metered fare of $40 .

Additionally, the country’s maximum taxi fare remains set at 20% more than regulated metropolitan fares.

READ MORE: NSW Government announces $645m aid package for taxi industry