Taxi, shuttle, private hire and dial-a-driver transport services will become separate categories of small passenger transport service, each with different new legal responsibilities.

The changes are to improve the overall standards of those working in the industry and help Land Transport New Zealand and the New Zealand Police better target those who aren't up to standard. This will help create a fairer system for everyone and protect the safety and security of customers using your service.

Some changes affect all small passenger services. For example, from 1 October 2007 your transport (passenger) service licence number must be displayed on the front doors of all vehicles used in that service. (If you work for a dial-a-driver or private hire service, you will need to carry the number with you.)

However, there are some changes which only affect some services. If, for example, you currently operate a dial-a-driver service, then you will need to obtain a transport service licence by 1 October 2007 to continue operating.

Our summary guide will help you see how the changes affect each type of small passenger service. Check which requirements affect you, and then read on for more detail about what you need to do and by when.

It's important you understand all the changes that affect you so you can be ready for 1 October 2007. If you are unsure about any of the new requirements, call the Land Transport NZ contact centre on 0800 822 422.

2 - Summary guide

The changes being introduced on 1 October 2007 will affect different types of small passenger service licence holders and drivers in different ways.

Use the summary guide to see which of the changes affect you and your business, and then read the information on pages 5–18 to get more details about each change.

New legal requirements from 1 October 2007

3 - Changes for all small passenger service licence holders

Whether you're an individual owner, owner/driver or a company, you must hold an appropriate transport service licence to operate on New Zealand's roads.

There are four categories of transport service licence – passenger service, goods service, rental service and vehicle recovery service. To operate a passenger service, you need to meet the conditions for a passenger service licence (PSL) before you can begin operating.

From 1 October 2007, PSL holders must comply with the following requirements (many of these requirements also affect dial-a-driver services as they are required to hold a PSL from 1 October 2007 - see Dial-a-driver services for details).

Display your TSL number

Passenger service licence holders will be required to display their licence number on the outside of their vehicles.

The TSL number will need to be displayed on both forward doors, so that it can be seen by a person standing next to the vehicle.
The passenger service licence number needs to have the letters TSL before it, eg TSL 1234567.
The numbers need to be printed in an easy-to-read font, in a contrasting colour to the vehicle and be at least 48-point sized. (Depending on the font you will need to use letters that are at least 11 mm in height.)

Note: Dial-a-driver and private hire (eg, limousine) drivers will not need to display their TSL number on the outside of their vehicle, but must carry the operator's TSL details with them while working (see pages 15 and 17 for more details).

Keep us informed

From 1 October 2007, all PSL holders must let Land Transport NZ know within 14 days if there are any changes to their name, the people in control of their business or their business address.

If you are a body corporate, you will also need to update Land Transport NZ with any changes to your company's details (including details of mergers, amalgamations or dissolutions) within 14 days.

Fare receipts

Fare receipts will need to include:

the fare and any special charges that apply
the driver's unique identifier (from their identification card)
the vehicle's registration plate number
the operator's GST number (if applicable)
the date of hire.

If you are operating a taxi service, you will also need to include the name of your approved taxi organisation (ATO) on your receipts.

The new requirements do not apply to dial-a-driver services. Dial-a-drivers are still subject to Inland Revenue's GST reporting requirements.

Certificate of knowledge of law and practice

If you currently hold a PSL, then you should already have a certificate of knowledge of law and practice (CKLP), a test designed to ensure you understand general transport industry laws and safety standards, and the specialist rules and practices that apply to the transport service you operate.

From 1 October 2007, Land Transport NZ can require you to re-sit the CKLP if it has reason to believe that you don't have adequate knowledge of your legal responsibilities to ensure safe and proper operation of your transport service.

If you are disqualified from holding a PSL, and wish to re-apply at the end of your disqualification period, you'll need to re-sit the CKLP test.

Dial-a-driver services do not need to sit the CKLP test to obtain a PSL.

For more information, call the Land Transport NZ contact centre on 0800 822 422 or read Factsheet 47, Transport service licences.

Certificate of responsibility

If your vehicle is used by another transport service licence holder, then you will need to get a certificate of responsibility from them. A certificate of responsibility confirms what the vehicle is being used for and that the person or organisation using your vehicle is responsible for any offences committed while the vehicle is in their possession.

Make sure that:

you organise the certificate of responsibility before you allow another person to use your vehicle for a transport service
you hold onto the certificate for 12 months after the date it relates to, so that you can produce the certificate for inspection by an enforcement officer
the driver of the vehicle is given a copy of the certificate to carry in the vehicle.

For more information about obtaining a certificate of responsibility, call the Land Transport NZ contact centre on 0800 822 422.

4 - Changes for all small passenger service drivers

Work time

Fatigue is a serious issue for the transport service industry. If you work for any type of passenger service, you (and your employer) are responsible for ensuring that you do not exceed legal work time limits and that you record all hours worked.

From 1 October 2007, there will no longer be a difference between working hours and on-duty driving hours - all hours spent working will be counted as work time hours.

Most types of passenger service drivers, including dial-a-driver, shuttle and private hire, will need to take a 30-minute break after 5½ hours of work time*. Drivers must take a break of at least 10 hours (as well as the 30-minute breaks during work time) after working for 13 hours (a ‘cumulative work day’) in any 24-hour period.

Drivers can work a maximum of 70 hours in any ‘cumulative work period’, counted from the last 24-hour break taken (eg your last day off).

* Because taxi drivers normally have unscheduled rest breaks while waiting for a fare, the new law will allow them to work for 7 hours before they are required to take a 30-minute break. However, if a taxi driver accepts a fare of more than 100 km, or undertakes other work-related activities within the cumulative work day, then they must take their 30-minute break after the standard 5½ hours that applies to other commercial drivers.

Logbooks

The new format for the taxi logbook form is shown on page 11. This format has been designed for use by taxi drivers and other passenger services. A new general logbook form has also been designed for use by transport services. Passenger service drivers can use either version.

Old-style logbooks cannot be used after 1 July 2008. Make sure you have a new style logbook and are using it correctly before then.

When you are filling out your logbook page, make sure you include:

your name
the date
the registration number of the vehicle you are driving
the start and finish distance recorder readings, if the vehicle you are driving is subject to road user charges
the start and finish time and location for all your work time hours
the start and finish time and location for all your rest breaks.

You will also need to make sure that your name or unique identifier is on the cover of your logbook.

Taxi logbook form

If you are employed by a PSL holder, you will need to provide your employer with the ‘record’ copy of your logbook entry for each cumulative work period within 14 days.

If you experience a delay that causes, or is likely to cause, the work time limits for that day or your cumulative work period to be exceeded, you need to note the event and the length of the delay in your logbook.

If you employ drivers or are an owner-operator, you are also required to keep fuel and accommodation receipts and produce them on demand by an enforcement officer. You are also required to keep a range of employment records. For more information visit www.landtransport.govt.nz/commercial/.

If you fail to produce your logbook to an enforcement officer on demand, you could face a maximum fine of $2000 if you are an individual or up to $10,000 if you operate a body corporate.

You will also incur 35 demerit points on your personal driver licence.

For more information on the new work time and logbook requirements, order a copy of Work time and logbooks from the Land Transport NZ contact centre on 0800 822 422.

Example

Alex Driver starts a shift in his taxi at 1 pm. He drives his taxi around Matamata until 8 pm, when he takes a break for 30 minutes for a meal. After his break, he works until 10 pm before stopping for the evening.

An example of how Alex's logbook entry should look can be seen below.

5 - Taxi owners and drivers

If you drive a taxi (for yourself or for someone else) you'll need to know about the work time and logbook requirements on pages 8–11, but also about other changes which apply only to taxi drivers.

Area knowledge certificates

Area knowledge certificates (AKCs) test your knowledge of the routes and destinations in the area you work.

From 1 October 2007, the number of areas where an AKC is required will be reduced. Taxi drivers working in areas indicated on the map will require AKCs. In other areas, it is the responsibility of the ATO to ensure drivers have an adequate knowledge of the area they are operating in.

From 1 October 2007, taxi drivers in Wellington and Auckland must hold all the AKCs for the wider metropolitan area. If you hold an AKC for one area in either Wellington or Auckland, and you have been working as a taxi driver prior to 1 October 2006, you will be considered to hold all the AKCs for that area. If you started working as a taxi driver after this date, you will need to obtain the remaining AKCs by 1 April 2008.
You must not accept a hire in an area for which you don't hold an AKC.
If Land Transport NZ has reason to believe you don't have adequate knowledge of the area in which you normally drive, you can be asked to re-sit and pass the AKC for that area.

For more information about AKC requirements, read Factsheet 4, Taxi drivers and area knowledge certificates.

English language requirements

While the AKC tests taxi drivers’ English skills, Land Transport NZ will now be able to request additional English language testing if there are reasonable grounds to suggest that a driver isn't able to communicate adequately with passengers.

Further information is available under the Operator Licensing Rule.

Tax obligations

If you are a taxi owner who charges GST on your fares, then you need to be registered for GST, even if your turnover is less than $40,000 each year.

If you are a taxi owner who employs other drivers, you must deduct PAYE tax from payments to your employees. PAYE forms need to be sent to Inland Revenue each month with your payments.

To find out more about your tax responsibilities, contact Inland Revenue's INFOexpress centre on 0800 257 773 or read Taxes and the Taxi Industry IR272, available at www.ird.govt.nz.

Approved taxi organisations

The legal responsibilities of approved taxi organisations (ATOs) are also changing on 1 October 2007 to enhance their responsibilities to both their members and drivers, and the public. For more information, call the Land Transport NZ contact centre on 0800 822 422.

6 - Dial-a-driver services

From 1 October 2007, if you operate a dial-a-driver service, you will need to hold an appropriate transport service licence (a PSL) to continue operating. Dial-a-driver operators will need to apply for a PSL before 1 October 2007.

From 1 October 2007, all dial-a-drivers must carry the PSL number, and the full name, business location and phone number of the PSL holder with them. They must also wear a current identification card in a place where it can be easily seen.

Dial-a-driver services do not have to obtain a CKLP to operate.

To apply for a PSL, download an application pack. Alternatively, call the Land Transport NZ contact centre on 0800 822 422 to request an application pack.

7 - Shuttle services

A shuttle is a small passenger service vehicle designed to carry 8–12 people from or to an airport, a railway station or a ferry or bus terminal.

If you operate a shuttle service, you must register the following information with Land Transport NZ by 1 October 2007*:

fare information including GST (if GST is charged)

Note: a fare, provided it is lower than the registered fare, can also be agreed with the prospective passenger(s) in advance of the journey taking place
the service itself, and the start and end points of the shuttle service (as appropriate).

Note: either the start or end point of the service must be an airport, railway station or a ferry or bus terminal.

For more information on how to register your shuttle service, call the Land Transport NZ contact centre on 0800 822 422.

* Land Transport NZ will acknowledge your registration. You will need to carry a copy of this acknowledgment with you and produce to an enforcement officer, if requested.

8 - Private hire vehicles

A private hire vehicle transports passengers who have booked the vehicle for a particular service or journey for an agreed fare (eg limousines or wedding cars).

If you operate a private hire vehicle service, you must register the type of service (eg wedding car) and the general area that you operate in with Land Transport NZ by 1 October 2007*.

To qualify as a private hire service, you must ensure that your services are pre-booked and that you charge a set fare or an hourly rate agreed with the prospective passenger(s).

While private hire vehicle drivers do not need to display their PSL number on the outside of their vehicle, they do need to carry the PSL number with them while working, and the full name, business location and phone number of the PSL holder.

For more information on how to register your private hire vehicle service, call the Land Transport NZ contact centre on 0800 822 422.

* Land Transport NZ will acknowledge your registration. You will need to carry a copy of this acknowledgment with you and produce to an enforcement officer, if requested.

9 - Exempt passenger services

Some passenger services don't need a TSL. Examples of exempt passenger services include services operated by incorporated charitable organisations and district health boards. From 1 October 2007, the exemption criteria will be widened to include educational and recreational organisations.

If you believe that you provide a passenger service that may be exempt from passenger transport service requirements, call the Land Transport NZ contact centre on 0800 822 422 to confirm, or read Factsheet 18, Volunteers transporting passengers for more information.

Where do I fit?

If you don't believe that your type of passenger service has been covered in this booklet, and you want to find out whether any of the new requirements apply to you, call the Land Transport NZ contact centre on 0800 822 422 for more information.

Glossary

Area knowledge certificate (AKC)
Examinations designed to test taxi drivers’ knowledge of the routes and destinations in a particular area.

Certificate of responsibility
A certificate that outlines who is responsible for a vehicle when it is lent or hired to another TSL holder.

Certificate of knowledge of law and practice (CKLP)
A test designed to ensure an understanding of general transport industry laws and safety standards and the specialist rules and practices that apply to the transport service you operate.

Cumulative work day
A working day that does not exceed 24 hours and that begins after a continuous rest period of at least 10 hours.

Cumulative work period
A set of cumulative work days between continuous periods of rest time of at least 24 hours.

Passenger service licence (PSL)
One of the four types of transport service licence; required to operate a passenger (taxi, shuttle, private hire or dial-a-driver) service.

Transport service licence (TSL)
A licence to operate one of four types of transport service in New Zealand. Depending on the type of service you operate, you will need a passenger service licence, a goods service licence, a rental service licence or a vehicle recovery licence.

Disclaimer

This publication is intended to provide general information to the public about safe driving practices. Every effort has been made to ensure the quality and accuracy of this information. However, readers are advised that the information provided does not replace or alter the laws of New Zealand and other official guidelines or requirements or replace any legal requirement. You should also be aware that any such legal requirement may be replaced or amended subsequent to this publication. Readers should, therefore, take specific advice from qualified professionals before undertaking any action based on information contained in this publication.

The authors of this publication do not accept any responsibility or liability whatsoever, whether on contract, tort, equity or otherwise for any action taken, or reliance placed, as a result of reading any part of this publication or for any error, inadequacy, deficiency, flaw or omission from the information provided in this publication.

Page created: 14 May 2008

Hire standards

Upcoming law changes for taxi, shuttle, dial-a-driver and private hire services

Table of contents

1 - Passenger transport service law changes