A $1 rideshare levy originally brought in to help compensate the taxi industry is now hitting the victims themselves.

The $1 plus GST levy on every fare was brought in as a compromise to make taxis more competitive following the legalisation of Uber.

But instead of slapping it exclusively on Uber – the disruptor – the state government applied the levy to all rideshare services, including the victims of Uber; hire cars and taxis.

“Sure, it’s only $1 plus GTS, but on a short trip… that extra $1.10 could sway your decision between dialling up an Uber or going for the cab,” says Michael McLaren.

“Yet it applies to all.”

The levy collected more than $34 million in its first six months.

NSW Taxi Council Deputy CEO Nick Abrahim says it’s “been quite challenging”.

Click PLAY below to hear the full interview