The Victorian Government will abolish taxi licences and create a single registration system over the next two years to provide for safer, simpler and more flexible trips, it says.

It will impose a levy of $2 per trip on all commercial passenger vehicle providers such as Uber to pay for the reform.

About $378 million will be spent helping taxi licence-holders transition to the new framework, while a $75 million “fairness fund” will help industry participants experiencing immediate financial hardship due to the changes.

Premier Daniel Andrews says the reforms are “a comprehensive and fair” response to the new ways people travel.

“We’re levelling the playing field for the whole industry while ensuring consumers have safe and reliable access to transport services,” he said.

Under the new system drivers must be accredited by the Taxi Services Commission, undergo police, medical and driving history checks, and be subject to ongoing criminal data matching.

There will be a dedicated commissioner for disability services.

Rank and hail work will be available only to services that meet stringent requirements including cameras and fare meters.

The knowledge test will be abolished and replaced by a simple system of industry accountability for all drivers.

Some $25 million of the fairness fund will be spent improving transport access for disabled people.

Minister for Public Transport Jacinta Allan says the reforms will give Victorians more choice and guarantee disabled people are not disadvantaged.