The closure of Southern Highlands Taxis has become a key example in the NSW Opposition’s push to cut insurance costs for taxi operators, with the Coalition promising to overhaul compulsory third-party (CTP) premiums if elected.
The NSW Liberals and Nationals have pledged to place taxis in the same CTP insurance classification as rideshare vehicles, arguing the current system puts traditional taxi operators at a significant disadvantage. According to the Opposition, metropolitan taxi operators can pay up to $6,000 a year for CTP insurance, while regional operators pay about $5,200. By comparison, rideshare drivers typically pay between $500 and $700.
The announcement comes as the taxi industry faces increasing financial pressure, with more than 600 taxis leaving NSW roads over the past two years. The Opposition says the recent closure of Southern Highlands Taxis demonstrates the challenges facing regional operators and the risk of communities losing vital transport services.
Member for Goulburn Wendy Tuckerman said she had raised concerns about the future of Southern Highlands Taxis before its closure and blamed the NSW Government for failing to address the industry’s concerns.
“When I became aware of the difficulties facing Southern Highlands Taxis in the lead-up to its closure, I raised my concerns with my colleagues and highlighted the lack of action being taken by Chris Minns and Labor,” Mrs Tuckerman said.
The proposal follows a recommendation from a NSW Parliamentary Committee that taxis and rideshare vehicles be brought under a single CTP insurance classification within six months of its April 2026 report. The Opposition claims the recommendation has not been acted on by the Minns Government.
Opposition Leader Kellie Sloane said the proposed changes would create a fairer system for businesses providing similar passenger transport services, while NSW Nationals Leader Gurmesh Singh said regional communities are often hardest hit when taxi services disappear.
The Coalition says the reforms would help keep taxi operators on the road, protect jobs and maintain access to transport services in communities such as the Southern Highlands.
