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Becoming an approved taxi organisation (ATO)

Updated: 8 May 2012

Operating a taxi service comes with many responsibilities, which is why you have to be an approved taxi organisation (ATO) to provide this passenger service. ATOs coordinate taxi services operating under their name.

Sections 30P and 30Q of the Land Transport Act 1998 (external link) set out the minimum requirements ATOs must meet, while Section 8 of the Land Transport Operator Licensing Rule details the legal standards and requirements. Here, we provide an overview.

Making an application to become an ATO

To become an ATO you need to apply to us. To apply, you need to complete some forms and submit them to the NZ Transport Agency office in the area in which you want to operate. You’ll need to pay the required fee when you apply.

You can only begin operating your taxi service once you have written approval from us.

Showing adequate knowledge

You must show that you have an adequate knowledge of legal requirements and responsibilities to operate an ATO. At least one person who has a controlling position in your organisation must hold a Certificate of Knowledge of Law and Practice. To gain this certificate, our transport officers will assess you on your knowledge of the rules and legislative requirements. As part of the assessment process, you’ll need to provide proof of your identity.

Find out more information on the Certificate of Knowledge of Law and Practice at our Contact Centre.

Operating rules

All ATOs must have operating rules. The rules, and any amendments to them, must be approved by us and ATOs must ensure their members and drivers comply with them.

You are responsible for developing your own rules.

We can only approve your application as an ATO if we’re satisfied your rules provide adequate control over your members and drivers.

Level of service

Unless exempted by us, you must provide your taxi service and take phone bookings 24 hours-a-day, seven-days-a-week. You must also advertise your ATO’s telephone number in the White Pages as soon as practicable (in the next edition for the area(s) in which you will operate).

Notifying changes

You must notify us within 14 days if you change:

  • the person in control of your ATO
  • your business address or phone number
  • the areas in which you operate

Passenger service licence

Passenger service licences must be held by:

  • ATOs that employ drivers – as employees – to drive taxis
  • Members of ATOs who drive taxis.

Drivers who are employees of ATOs are not required to hold a passenger service licence. They are covered under the employing ATO’s licence.

Find out more about your employer obligations (external link), including determining whether a person is an employee or a contractor.

Driver requirements

You must ensure all your drivers have:

  • adequate knowledge of your operating area(s) and, where required, hold an area knowledge certificate
  • adequate English language skills
  • a current driver licence, P endorsement and driver ID card. Find out more about these requirements.

Immigration law requires you to ensure your drivers can legally work in New Zealand ie, they hold New Zealand residency or a work permit. Check the Immigration Service website for information (external link - PDF).

You and your drivers have a number of legal and other responsibilities in providing a safe and effective passenger service. Find out more.

Driver misconduct

You must report to us within 48 hours if you:

  • terminate any member or employee because of improper behaviour
  • receive any complaints of a serious nature and the actions you’ve taken.

Incidents of misconduct could include driver violence, assault, sexual offences, driving under the influence of alcohol or drugs, dangerous or reckless driving.

Keeping proper records

ATOs are required to keep a number of registers, which must be made available when requested by an enforcement officer, at any reasonable time of day.

You must keep registers of:

  • all members who hold passenger service licences, with licence numbers and vehicles operated by each
  • all drivers working for your organisation, their driver licence and area knowledge certificate details
  • all vehicles operated under your organisation, their unique fleet and registration numbers
  • complaints.

Complaints register

As far as practicable, your complaints register must include:

  • the name and position of the person within your organisation who received the initial complaint
  • the name, address and contact telephone number of the person making the complaint
  • the date, time and location of the event or issue relating to the complaint
  • the name, or description of the person complained of
  • details about the complaint
  • details of your response to the complaint and any action taken
  • how you notified the complainant of your response to the complaint and the date you did this
  • the name and position in the ATO of the person who took action in response to the complaint (if different to the person who took the initial complaint).

Driver hours logs

You must also:

  • record the log-on and log-off times of all drivers, and
  • retain these records for 12 months.

These records of driver hours help demonstrate that you are maintaining adequate control of your drivers, which is an important consideration in the 'chain of responsibility'. The chain of responsibility recognises that everyone who influences a driver’s behaviour and compliance should, and must, be held accountable if that influence results in non-compliance. Find out more.

Signage

We must approve all ATO signage. Signage includes:

  • the name of your ATO
  • business location
  • contact number
  • logo(including colour)
  • roof sign.

It also includes Braille information, which all taxis must display on the inside of either left passenger doors. Contact us for more information.

To get our approval, your new signage must be distinguishable from the signage used by other ATOs operating in the same area. You may use more than one brand name or signage – and fares – provided they target different markets.

Your drivers must use the latest signage approved by us, including fare schedules. When you replace your signage, you must ensure use of the old signage is discontinued.

Fares

Fare schedules

You must ensure that all your vehicles display your fare schedule – and only the schedule most recently approved by us. The fares schedule must state whether GST is included.

See the Operator Licensing Rule for detailed information on how you must display fare schedules.

If you charge GST you must be registered for GST. If your operators are unsure of GST requirements, they should visit www.ird.govt.nz. If the receipt is also a tax invoice, then IRD requirements will also apply.

Fare receipts

Whether your receipts are handwritten or printed, each fare receipt must include:

  • the fare
  • any special charges
  • driver's unique identifier (as shown on ID card)
  • vehicle's registration number
  • operator's GST number (if GST is charged)
  • name of your ATO
  • date.

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