Melbourne Taxi Fares Explained: How the Meter Actually Works

Victorian taxi fares are regulated, which means every compliant Melbourne taxi charges from the same table. There is no surge pricing. Once you understand the four moving parts, you can predict almost any fare before you get in the car.

Part 1 — Flag fall

The meter starts at a fixed amount the moment the trip begins. It depends only on the rate band that applies at that time of day.

Part 2 — Distance or time, never both

This is the part most people get wrong. The meter charges a per-kilometre rate while the car is travelling above 21 km/h, and switches to a per-minute rate whenever it drops below that speed. It never charges both at once. That single rule explains why a stop-start peak-hour trip costs more than the same distance at midnight.

Part 3 — The three rate bands

Part 4 — Extras

• Tolls — CityLink and EastLink are passed through at cost when the route uses them.
• Melbourne Airport pickup fee — charged by the airport on every taxi and rideshare collecting passengers from the terminals.
• Booking fee — applies to pre-booked trips.
• Waiting time — billed at the per-minute rate if you ask the driver to wait.
• Card surcharge — a small percentage on non-cash payments.

Worked example

A 45 km daytime run from the eastern suburbs to Tullamarine that flows freely spends nearly all of its time above 21 km/h. The fare is therefore flag fall plus roughly 45 km at the distance rate, plus tolls. Put the same trip in the 8am peak, add twenty minutes below the speed threshold, and those twenty minutes are billed at the per-minute rate instead — a materially different number for an identical journey.

How to keep a fare predictable

• Travel outside 7–9am and 4–6:30pm wherever possible.
• Pre-book so the car is waiting, rather than paying waiting time while you find one.
• Accept the toll route on long airport runs — it usually costs less than the extra metered minutes.
• Ask for the estimate up front; our booking form calculates it from real road distance before you confirm.

SE Premium Cabs quotes every trip in advance using these regulated rates. Call 0493 100 265 or book online.