NSW taxi fares to be cheaper

Taxi fares are set to become five per cent cheaper by the end of the year, with the NSW government making changes to transport legislation.

Minister for Transport Gladys Berejiklian announced the taxi surcharge on card payments will be cut from 10 to five per cent, and will come into effect at the end of 2014.

"More people are choosing to pay by card and they shouldn't be penalised," Ms Berejiklian said in a statement.

"Today's changes will put money back in taxi customers' pockets, providing a $2.50 saving on a $50 fare."

The Passenger Transport Act 2014 also brings taxi booking apps into the regulatory framework for the first time, giving customers more booking options while prioritising customer safety.

"Under the updated legislation, customers will be able to choose from a range of booking methods including apps that connect them directly with a driver and allow them to track their taxi service on their smartphone," Ms Berejiklian said.