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These definitions will assist you in understanding your obligations in relation to the commercial passenger vehicle service levy.

Affiliation agreement

An affiliation agreement is a formal agreement between a booking service provider and a trip provider for the booking service provider to lodge and pay returns on behalf of the trip provider for their rank and hail work, which is also known as unbooked work.

Bailment agreement 

A bailment agreement (also known as a driver agreement) is an agreement made between the owner of a commercial passenger vehicle and another person, the driver, which enables the driver to use the vehicle for commercial passenger vehicle services. It is not an agreement for the purchase of the vehicle or a contract of employment or of service.

Booking service

A person provides a booking service if they are in the business of receiving requests (bookings) to provide people with commercial passenger vehicle services. They arrange or facilitate booking requests by or on behalf of drivers of commercial passenger vehicles.

Commercial passenger vehicle service

A commercial passenger vehicle service is the carriage, for a fare or other consideration, of one or more passengers in a motor vehicle on a journey beginning in Victoria and ending at one or more destinations, whether in or outside Victoria.

Employee

The Commercial Passenger Vehicle Industry Act 2017 does not define the term employee. However, in most instances, it is not difficult to determine whether someone is an employee.

If it is unclear whether a person is an employee, a number of significant factors (established under law) should be considered, including:

  • control and direction
  • contract and practical relationship
  • contracts to achieve a ‘given result’
  • independent business
  • power to delegate
  • whether the person bears risk around things like profit and loss, and
  • provision of tools and equipment.

Numerous court decisions have held that the totality of the relationship between the parties must be taken into account before deciding whether a worker is an employee. A determination cannot be made on the basis of a limited, or selective, number of factors.

If uncertainty exists, contact us to obtain a ruling.

Rank and hail work

Also known as unbooked work, rank and hail work is where commercial passenger vehicle services are conducted without a booking. 

Unbooked work

Unbooked work, otherwise known as rank and hail work, comprises all commercial passenger services provided without the use of a booking service. 

Last modified: 5 December 2023
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