NSW Taxi Council members may be aware that Roads and Maritime Services (RMS) has posted the average taxi licence value for Sydney at $150,000 for the month of June 2016. RMS also advised that there were less than five (5) transactions that led to this value.
The NSW Taxi Council wishes to advise that it considers that this does not properly reflect the correct market value of these assets.
The NSW Taxi Council is aware that this value is derived from the sale of one (1) licence only. For privacy reasons RMS is not able to divulge specific details of the sale however, in the view of the NSW Taxi Council, this sale is an outlier and therefore not representative of the current market value.
It is also materially inconsistent with recent trends in licence sales over the past few months and furthermore, the yields that are currently being achieved at this value are significantly higher than the long-term average for Sydney taxi licences.
The NSW Taxi Council has also requested that RMS review its processes for posting average licence values across the whole of NSW as it is considered that greater transparency is required to ensure that the market is properly informed in this critical area.
Members are therefore requested to view this latest advice from RMS regarding Sydney Taxi licence values with some caution. The NSW Taxi Council will keep members posted on any further relevant information as it comes to hand.