This Information contains an overview in what's involved in becoming an "Operator" with Garden City Cabs.  It Provides :-

  • An approximation of the start-up costs, expected income & typical expenses when operating a taxi.
  • An outline of the Department of Transport requirements.
  • Some considerations when starting a small business and becoming an "Operator"
  • An "Operator Application Form" to affiliate with Garden City Cabs including a "Credit Application Form" to establish an "Operator " account with us (available from Garden City Cabs office)
  • Broad information on Taxation issues.

What is a Taxi Service Licence (TSL)?
To ensure that the communities served by taxis receive quality and innovative taxi services at a reasonable cost, the Queensland Government regulates the taxi industry in this state. The government specifies such items as areas of operation, the numbers of taxis in those areas, maximum fares, types of vehicle, and standards of service. A Taxi Service Licence is a licence issued by Queensland Transport that allows the holder to provide a taxi service in a defined area. The holder of the licence must hold Operator Accreditation (also issued by Queensland Transport) and be affiliated with a taxi company holding a Taxi Service Contract. A driver of a taxi must hold Driver Authorisation. [Issued by Qld Transport] All of these entities and standards are defined in the governing legislation for the taxi industry in Queensland  the Transport Operations (Passenger Transport) Act 1994 and subordinate legislation.

In other words?
You need a Taxi Service Licence (TSL) to run a taxi. The operator of a taxi can own the TSL, or you can lease a licence from an owner or a taxi company. Garden City Cabs can lease you a TSL and assist you with setting up your own taxi business.

Business plan
Operating a taxi is a business. Just like any small business, there is a risk to investing your own money in the business. And you are investing a lot of money ? you may need to spend in excess of $40,000 before you make any income at all. This figure includes purchasing a car, which you could choose to finance instead. However, you will still need to spend about $15,000 in registration, insurance, lease fees, base fees, vehicle fit-out and other upfront expenses.
Garden City Cabs strongly recommends that you prepare a business plan before you proceed with investing such a sum of money. Your business plan should take into account the following factors:

  • The expenses as outlined below are continual, however demand for taxis fluctuates depending on the season. There will be quiet periods where you may not earn enough to cover expenses. You need to plan ahead for these.
  • You will need to allow for the start up expenses to be paid before you earn any money.
  • Up to half of your income can be in the form of Cabcharge and other dockets or EFTPOS payments. In some cases you may not receive payment for these fares for up to four weeks after the docket is lodged or the fare is processed. This will affect your cash flow in the first few months.
  • Accidents and mechanical breakdowns can cause your vehicle to be off the road while repairs are completed. In the worst case, your vehicle may be written off and require replacement. Your expenses will still need to be met during this time.
  • If you wish to use bailee drivers, you should give consideration to how you will recruit and retain drivers. Garden City Cabs will provide assistance in finding drivers, but only you can make someone want to drive for you.
  • You may have already driven a taxi for some time, but have you driven the shifts you intend to drive when you own the taxi? Have you driven the shifts your driver will drive so you know what to expect from them?  Do you know for a fact you can bring in the money that your business plan calls for?
Typical Start-up Expenses
Vehicle (on average)
Stamp Duty
Vehicle Fitout. [Decals, Eftpos, Meter, Computer, Cameras etc]
Initial Lease & Base Fee & Set Up costs & Bond
Registration & Third Party Insurance
Comprehensive Insurance

Total Start Up Expenses (approximate)		 $22,000
$     500
$  2,000
$  6,000
$  4,500
$  5,500

$40,500

What else do I need to know?
Operator Accreditation
Operator Accreditation from the Department of Transport is the qualification that a taxi licence operator must attain and maintain to be legally permitted to provide public passenger transport services. Even if the owner is not driving the taxi on a day-to-day basis, they are still required to hold Operator Accreditation.  Operator Accreditation is generally issued for a one-year period, and an annual fee is applicable on renewal. An application for Operator Accreditation may be refused (eg. if an applicant has been convicted of certain criminal offences), however for most operators approval should be straightforward. Garden City Cabs will supply you with an application form.

Driver Authorisation
Driver Authorisation from the Department of Transport is the qualification that a taxi driver must attain and maintain to be legally permitted to provide public passenger transport services. Driver Authorisation is generally issued for one to five years, and an annual fee is applicable. An application for Driver Authorisation may be refused based on driving or criminal history, but for most people approval should be straightforward on successful completion of a training course. Garden City Cabs will provide training and assistance with your application to Queensland Transport.

Income Tax
Taxi operators have the ability to claim the depreciation of the taxi vehicle as a deduction. On a $30,000 vehicle this could result in a deduction of up to $11,250 in a single year (depending on the method of depreciation used).

Goods & Services Tax
A taxi operator can hold the GST collected from taxi customers until the end of the reporting period it was collected in for a business with turnover in excess of $120,000 per annum that is a significant cashflow benefit.

Special Conditions for your Operating Account with Garden City Cabs
When the Account is established, EFTPOS payments are held for the 28-day billing cycle. The Lease & Service fees for the following month are then deducted with the balance transferred to your nominated bank account. The Security Deposit of $2,500.00 is held until the Account is closed. There are 13 account cycles per year.

What do I do now if I want to proceed?
You will first need to fill out an application form. We will need a few days to do credit checks and process the application.
You will be contacted with the decision and given:-

  • Advice about the availability of leases [with up to 30 days notice]. Please note there is presently a 9 to 12 month wait for these leases.
  • An "Operator's Agreement" and Department of Transport "Notification Form" to be signed before the lease commences
  • An account for the prepayment of the Security Deposit [$2,500.00] and the first month's Service and Lease and set-up fees
  • Assistance [if needed] in sourcing a vehicle
  • Referrals to approved installers who can fit-out your vehicle with the necessary dispatch equipment, decals, hail lights, eftpos, meter etc.