Queensland's peak taxi industry body is asking taxi customers to report drivers who refuse a fare because the distance is too short.
In a memo sent to members across the State, Taxi Council Queensland (TCQ) tells drivers that "it is against Queensland law for any driver to refuse a fare based on the distance of the intended trip".
The memo warns, "Any driver who does this risks losing their driver authorisation."
TCQ chief executive officer Benjamin Wash said the memo was given after reports from the public.
"There are times when a driver can refuse a fare and the public should be aware of these, however distance or direction is not a lawful reason," he explained.
The memo outlines reasons for legitimate fare refusal as "the driver believing his or her safety may be at risk, the customer being in an intoxicated state, the customer having no ability to pay the fare or other legitimate reasons".
Mr Wash said the vast majority of drivers provide exceptional customer service and that taxis were the safest form of transport.
"Taxi travel is a door-to-door service and provides customers with a level of safety and security many other forms of transportation cannot."
However he said that TCQ would not allow a small percentage of drivers to tarnish the reputation that the industry has worked so hard to build.
"There are over 12,000 taxi drivers in Queensland and approximately 240,000 taxi fares every day across the state. We know that the amount of problems is miniscule but when we hear of issues we act," he said.
Mr Wash has appealed to customers refused a fare because of distance to record the driver or taxi number and contact the taxi booking company.
"I can assure our customers any complaint will be acted upon, but if no one tells us, we don't know."