A loophole that once allowed taxi drivers to “rip off” passengers with disabilities has been closed in NSW.

Taxi drivers will now face a $3000 fine for refusing subsidised payment methods, refusing support animals, and starting the meter before a person’s wheelchair is properly secured within the taxi.

NSW residents who cannot use the public transport system are given paper dockets or smartcards which provide a 50 per cent subsidy up to $60 per taxi trip under the NSW Taxi Transport Subsidy Scheme, which was introduced 1981.

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The new fine follows a concerning number of “reports of cab drivers refusing to accept payment under the scheme — and even leaving passengers on the side of the road after disputes over payment,” the NSW Government said on Thursday.

“Some drivers have claimed their taxi is not equipped to take payment under the scheme but these reforms will compel all taxi service providers to ensure all drivers in NSW are set up to meet the requirements of the scheme.”

The new legislation also means taxi drivers will be fined if they refuse payment under similar interstate schemes which cover travelling passengers.

Other fines will also be increased to further deter taxi drivers from taking advantage of passengers.

Refusing a passenger who is travelling with an assistance animal or assistance animal-in-training will now be tripled to $3000.

Two or more such convicted refusals will also result in a disqualification for the driver.

Fare-related offences that cover overcharging, refusing fares, and refusing to use a meter, will also be tripled to $3000.

The fine for taxi drivers who start the meter before a passenger in a wheelchair is safely secured in the vehicle is also being increased from $300 to $3000.

“We are increasing these fines to send a clear message to the small number of taxi drivers who are doing the wrong thing, this kind of discrimination will cost you — so cut it out,” NSW Disability Inclusion Minister Kate Washington said.

“People with disability are entitled to the dignity of catching a taxi without having to worry about whether legitimate payments will be disputed, or whether they’ll be ripped off or left stranded.”

NSW Regional Transport Minister Jenny Aitchison said: “For many people with disability, particularly in regional areas, taxis aren’t a convenience — they are essential.

“This reform closes a loophole that should never have existed.”