Drivers will only be required to fork out $52.90 a year to hold a licence in Victoria.

It comes as part of the Victorian Government reforms to the taxi and hire car industry.

3AW Drive was sent a memo Uber had issued its drivers.

Tom Elliott then received the following statement from the Taxi Services Commission.

As part of the Victorian Government’s reforms to the taxi and hire car industry, important changes to taxi and hire car licensing took effect from today.

The high fees for taxi and hire car licences have been removed and  licence holders are now only required to pay a $52.90 annual administration fee, regardless of the type of service they provide or where that service is provided.

The fee is the same for taxis and hire cars. From today, owners of hire cars (including rideshare vehicles) are required to apply for a hire car licence before the end of the year.

Applications can be made by downloading an application form from the Taxi Services Commission website.

A fully online form will be available soon. All current licence holders have been transferred to the new system.

Existing licence holders who currently operate a vehicle can continue to do so.