It was introduced in 2018 as a temporary measure to help the struggling industry.
The value of taxi licences plummeted when ride-sharing services like Uber entered the market.
In 2016 then-transport minister Andrew Constance announced a $250m package to support the industry, giving licence holders $20,000 in transitional payments.
David Elliott, who took over the transport portfolio last year, has told the industry he did not believe the relief measures went far enough.
Earlier this month, Mr Elliott assured taxi drivers through a budget estimates hearing that the government “has got their back”.
He has told parliamentary colleagues that his first priority in the role was to ensure families who have had their livelihoods and assets trashed are given some dignity given that Uber has radically changed the market.
“I am very conscious of the fact that they, through no fault of their own, have lost the value of a business and, in many respects, tragically, that includes the life savings of families,” he said.
Senior sources indicated that given the position of NSW’s finances, any new budget proposals would be unlikely to pass the expenditure review committee unless they were offset by cuts or extra revenue measures.
That means unless the compensation proposal is fully funded through an extension to the passenger service levy, it is unlikely to be accepted.
There are about 5000 taxi licence holders in NSW.
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