New licences, new fares in Vic cab changes Taxis will be dearer in Melbourne on Friday and Saturday nights and drivers will sit a new knowledge test under a government shake-up of the cab industry. But exactly how much more passengers will have to pay won't be known for at least another year, after a fare review by the Essential Services Commission (ESC). Card payment service fees will be halved from 10 per cent to five per cent. Taxi fares will rise at peak times, including Friday and Saturday nights, but will be cheaper during off-peak periods. Victorian Premier Denis Napthine says fares will be overhauled to improve affordability and address cab shortages and drivers refusing short trips. Drivers will have to sit a mandatory independent knowledge test in Melbourne and urban areas. The exam, to be set by the new Taxi Services Commission, will cover driving and customer service skills, English proficiency and safety awareness. Dr Napthine said drivers needed to know the location of basic landmarks and main streets in central Melbourne. "We had customers complaining that drivers didn't know the fundamentals of where the MCG was, where the airport was, let alone Bourke Street and Collins Street," he said. Other reforms include talking taxi meters and a metropolitan dedicated booking service for people requiring wheelchair-accessible cabs. Licence holders will no longer have to be affiliated with a network but must follow the same safety rules as the large cab companies. An unlimited number of new licences will be available to rent from the government, with the annual renewable taxi licence fee set at $22,000 in metropolitan zones. Fees will be indexed to the CPI minus 0.5 per cent, contrary to recommendations from the taxi industry inquiry. Inquiry head Allan Fels said the indexation would trigger escalating licensing costs. The ESC will be able to act if so many people apply for taxi licences that it would damage the industry. Victorian Taxi Association chief executive David Samuel said he was concerned the reforms would devalue existing taxi plates, currently worth about $350,000. He said taxi drivers unaffiliated with network providers would not be able to provide the same level of safety. Passenger safety can be affected if you're not affiliated, because it makes it harder to track that journey. It also makes it harder to provide in-car safety equipment like cameras and alarms," he said.