beaverdownunder (1822050) writes "Victoria Australia's Taxi Directorate has begun a crackdown on Melbourne Uber drivers, fining them $1700 each for operating a taxi service illegally, with total fines apparently equalling over $50000. In response, Uber has shut down its Melbourne service, and has refused to comment on whether its drivers will be compensated, since Uber told them they were providing a legal service. (Fined Uber drivers could take the company to the state's consumer tribunal: stay tuned!) Uber is set to meet with the Directorate next week but it is likely the demands the Directorate will place on Uber drivers, such as mandatory criminal record checks, vehicle inspections and insurance, will make the service in Melbourne unviable. Meanwhile, the New South Wales government is awaiting a report to determine if Uber drivers operating in that state are doing so illegally, warning that drivers could face substantial fines if they are found to have been operating in breach of the law. In South Australia, it doesn't even appear Uber will get off the ground — the state has made it clear that those who operate as an Uber driver will be driving without being covered by the state's mandatory insurance coverage, essentially de-registering their vehicle and making them liable for fines and license suspension."