Ride-sharing to be legalised in Victoria

Victorian ride-sharing services could be legalised within months after the state government accepted amendments to get its bill through parliament.

The government has agreed to Sex Party MP Fiona Patten's recommendations for a $1 levy, and for the Essential Services Commission to determine when the government had recouped the amount paid in compensation.

The levy funds will be used to compensate existing taxi licence holders.

"I had to force the government to act, but as a result of this reform, Victorians will now be able to legally access and work within a business model with massive growth and an exciting future," Ms Patten said on Friday.

Public Transport Minister Jacinta Allan said the legislation would "regulate ride-sharing, cut fares and provide the most generous industry transition and support package for the existing taxi and hire car industry in Australia".

Uber's Victorian manager Lucas Groeneveld said Ms Patten's "sensible amendments" moved the reforms forward.

"We're pleased the Legislative Council has accepted the amendments and trust the Victorian government will pass the bill when parliament resumes," he told AAP on Friday.

But Liberal MP David Hodgett said the government voted to increase taxes on all Victorians.

"The amendments to the bill will be debated by the Legislative Assembly in August because Daniel Andrews continues to delay and play political games with people's livelihoods," he said.

The state government also agreed to remove the $50 million cap for their fairness fund to ensure all eligible applications receive payments.

The bill also requires ride-share service drivers to undertake police checks and be accredited while a Disability Commissioner will be appointed to expand accessible services.

The amendments will go before the Legislative Council in August.