Good news for Uber passengers, bad news for taxis as WA reform hits a roadblock

A plan to impose a 10 percent levy on all ride-sharing trips in Western Australia looks set to fail, after the state opposition said it wouldn’t support the scheme.

The McGowan government had planned to use the extra funds from ride-sharing companies like Uber, to fund a taxi plate buyback scheme.

Owners of government-regulated taxi plates have seen their value plummet since the arrival of app-based transport services in WA.

Several Liberal MP's supported a buyback scheme with a levy while in Government, but Opposition leader Mike Nahan today described the levy as a tax while vowing to oppose the plan.

“Don’t expect us to support you breaking your election promise and put a great big $110-million tax on Western Australia,” Dr Nahan said.

It means the State Government is unlikely to get the reforms through the state’s Upper House.

Premier Mark McGowan says there is no plan B for funding.

“We think it’s a fair and reasonable way to go, this is the package put forward, there is no other option,” he said.

The reforms would have seen plate owners receive compensation of at least $100,000.