How taxi meters work in Australia

Taxi meters in Australia are legally approved instruments that calculate fares using a time-and-distance algorithm: a fixed flagfall is added to charges that switch between distance and waiting-time depending on how fast the vehicle is moving, with extras like tolls or late-night surcharges applied under state rules. In practice, the meter continuously tracks distance and elapsed time, applies the correct tariff for the time and place, and displays the running total; all devices must be pattern-approved and periodically verified under national measurement law, while fare caps and surcharges are set by state and territory transport regulators.

What an Australian taximeter measures

Modern Australian taximeters track two things at once—distance and time—and always charge according to the tariff that yields the appropriate amount at that moment. Distance is measured either from the vehicle’s calibrated pulse output (wheel/speed sensor) or from an integrated GPS module, while time is measured continuously when the meter is “hired.” The device displays the total fare, flagfall, extras, and sometimes distance/time, and it can print or send an electronic receipt through an integrated payments terminal.

The fare calculation algorithm

Although exact prices vary by state and territory, the logic of a taximeter is broadly the same nationwide. It combines a fixed start charge (“flagfall”) with incremental charging that alternates between distance and time depending on the vehicle’s speed, so that slow traffic or waiting is billed by time and free-flowing travel is billed by distance. The meter also switches between tariff tables for day/night, weekends, holidays, and geographic areas as required by local rules.

The following steps outline how a typical Australian meter calculates the fare from start to finish.

1. When the trip begins, the driver presses “Hire,” which starts timing and adds the regulated flagfall to the fare.
2. The meter tracks distance and time simultaneously and applies the active tariff table selected for the time/day/area.
3. As the taxi moves, the meter compares the distance-based increment and the time-based increment. Above a threshold (“changeover”) speed it charges by distance; below it (or when stopped) it charges by time/waiting.
4. Charges accrue in small steps (for example, a few cents per X meters or per Y seconds) to keep the display updating smoothly and to meet legal accuracy requirements.
5. Extras that are permitted by local regulation—such as tolls or an airport fee—are added when triggered by the driver or automatically by the in-vehicle system.
6. At the destination, the driver presses “Stop” to freeze the fare and then “Vacant” after payment; the meter can print or send a receipt itemising the journey.

Taken together, these steps ensure that you pay a regulated combination of flagfall, distance, and waiting time, plus only those extras that are allowed for the place and time of travel.

Tariffs, extras and surcharges

Australia regulates taxi pricing at the state and territory level. Each jurisdiction sets maximum fares for rank-and-hail trips (and often guidance for booked trips), with different tariff tables for day, night, weekend, and public holidays. Meters contain these tables and select the correct one automatically (by clock) or via the driver. Extras are tightly defined and must be disclosed.

Here are the most common fare components and add-ons you may see on the meter or receipt.

• Flagfall: a one-off starting charge when the meter is engaged.
• Distance rate: the per-kilometre charge applied when the vehicle is moving faster than the changeover speed.
• Waiting/time rate: a per-minute charge applied when the vehicle is stopped or moving slowly (for traffic lights, congestion, or passenger-requested waiting).
• Time-of-day/holiday tariffs: higher or different rates for nights, weekends, or public holidays, as specified by local rules.
• Booking fee: allowed in many jurisdictions for pre-booked trips arranged via phone or app.
• Airport/rank access fees: added automatically or manually when departing certain terminals or ranks that levy access charges.
• Tolls and road-user charges: passed through at cost when the route uses a tolled road or airport lane.
• Payment surcharge: a capped card-processing fee may be applied for non-cash payments, with caps set by state/territory rules and national card-surcharge laws.
• Cleaning/damage fee: a fixed fee allowed in limited circumstances when cleaning is required due to a passenger’s actions, as defined by local regulation.

Only items authorised by the relevant state or territory may be added, and any surcharges must be disclosed before payment; the receipt will itemise these components so you can verify them.

Regulation, approval and compliance

Two layers of law keep taxi meters accurate and fares fair in Australia. National measurement law governs the instrument itself, and state/territory transport law governs tariffs and operating rules. Together they require approved devices, verified installation, sealed calibration, and transparent pricing.

The following points summarise how meters are controlled and checked.

• Pattern approval: Meters must be type-approved by Australia’s National Measurement Institute (NMI) to recognised standards (aligned with OIML R 21 for taximeters) before they can be used for trade.
• Verification and sealing: After installation in a specific vehicle, an NMI-licensed technician verifies accuracy (distance/time) and seals the meter; resealing is required after repairs, software updates affecting measurement, or tyre size changes.
• Accuracy tolerances: Meters must stay within tight tolerances during tests (for distance and time) and be reverified if disturbed.
• Tariff loading: Only regulator-approved fare tables may be installed; operators are responsible for keeping rates current when regulators update them.
• Receipts and records: Meters must be able to issue receipts showing fare components, extras, date/time, vehicle/operator identifiers, and GST. Data logs may be retained under local rules for auditing and safety.
• Enforcement: NMI inspectors and state/territory transport compliance officers can test meters, check seals, and penalise misuse or overcharging.

These requirements are designed to ensure consistent measurement across fleets and cities and to give passengers confidence that the fare displayed reflects regulated settings and accurate measurement.

Riding with a meter: what passengers should know

For most trips, the meter will handle everything automatically. Still, a few practical checks can help you understand and, if needed, question charges.

Consider the following tips when you take a taxi in Australia.

• Check the tariff: A small label or on-screen indicator shows whether the meter is on the correct day/night or holiday tariff.
• Watch the extras: Tolls and airport fees should be itemised; if you’re unsure, ask the driver before the route is taken.
• Request a receipt: You’re entitled to one—paper or electronic. It helps with expense claims and fare disputes and should show GST.
• Know about fixed fares: Some jurisdictions allow fixed quotes for pre-booked trips. If you accept one, the meter may still run but the payable amount is the agreed price, subject to local rules.
• Payment choices: Cards and contactless are widely accepted. Any card surcharge must be within legal caps and displayed.
• Disputes: If something looks wrong, note the taxi’s number and time, keep the receipt, and contact the relevant state/territory transport regulator listed inside the cab.

Following these steps makes it easier to confirm you were charged correctly and to resolve issues quickly if they arise.

Differences across states and territories

While the metering principles are national, pricing and operating details differ by jurisdiction. State and territory transport regulators set maximum fares for rank-and-hail and define what extras are allowed. Examples include agencies such as IPART in New South Wales (for fare setting), Safe Transport Victoria (commercial passenger vehicles), Queensland’s Department of Transport and Main Roads, and the Departments of Transport in Western Australia, South Australia, Tasmania, the ACT, and the Northern Territory. Rates and surcharge caps are reviewed periodically, so operators must update meters when changes take effect.

Technology trends

Australian fleets increasingly use “smart” taximeters integrated with GPS, dispatch, cameras, and payment terminals. These systems can auto-select tariffs by time and location, add tolls automatically, support e-receipts, and provide regulators with anonymised compliance data. Regardless of integration, the measurement and charging core must still meet NMI approval and verification requirements.

Summary

In Australia, taxi meters are approved measuring instruments that combine a flagfall with time-and-distance charging, switching between distance and waiting-time based on vehicle speed and applying only regulator-authorised extras. The National Measurement Institute ensures meters are accurate and sealed, while state and territory regulators set fare tables, surcharges, and operating rules. For passengers, watching the tariff indicator, understanding permitted extras, and keeping a receipt are the simplest ways to confirm a correct fare.

What is the taxi meter rule?

17. A taxi meter in a vehicle is considered accurate if, (a) On a road test, the distance computed by the taxi meter is within 2% of the actual distance travelled; and, (b) On a time test, the time computed by the taxi meter is within 2% of the actual time. 18.

How do taxis work in Australia?

Taxis in Australia are required to be licensed and are typically required to operate and charge on a fitted taximeter. Taxi fare rates are set by State or Territory governments. A vehicle without a meter is generally not considered to be a taxi, and may be described, for example, as a hire car, limousine, carpool, etc.

Do taxi meters go by time or distance?

In short, a taximeter works technically by constantly measuring distance and time, and uses pre-programmed fares to calculate the total amount of the trip in real time. This enables accurate and transparent billing for cab services.

Are taxis metered in Australia?

Yes, in all Australian states and territories, taxi drivers must use the meter for any hailed or unbooked services.