Whether it's birthdays, weddings or funerals, Mark Tonga is used to missing family occasions — and that's outside the busy festive season.

"I don't even know if I'm going to make Christmas lunch," Mr Tonga told the ABC.

The Sydney man depends on wheelchair accessible taxis for his freedom.

But he's finding it harder to catch them.

The number of wheelchair-friendly cabs registered in New South Wales has fallen by one-third in five years.

There are 625 across the entire state, down from 941 in October 2019, according to government data.

Rising maintenance costs and diminishing government incentives have made it less viable to operate accessible taxis.

Disability advocates lobbied for change at a series of roundtables held by the state government.

But like the passengers in wheelchairs they represent, they've been kept waiting.

As the ABC previously reported, the government missed a September deadline to release its response to the consultation.

Months later, the government has finally announced action.

$15 million lifeline 

The ABC can reveal the government will throw a $15 million lifeline at the taxi market to address the shortage of accessible vehicles.

Incentive payments to drivers who pick up passengers in wheelchairs, referred to in the industry as "lift fees", will increase from $15 per trip to $25.

Interest-free loans of up to $125,000 will be made available to convert vehicles into accessible taxis.

Grants will be on offer to help with the costs of modifying cabs and training modules will be developed for drivers.

The emergency funding is set to flow in early 2025 and will last for just one year, with the government yet to work out an ongoing solution.

The problem was demonstrated when Treasurer Daniel Mookhey met with disability advocates and the NSW Taxi Council in October.

A member of the Physical Disability Council of NSW was unable to attend the meeting in person because he couldn't get a taxi.

One advocate has been told it was this meeting that got the treasurer over the line.

"It is unacceptable that people with disability are being denied the right to participate in their communities — to get to a job interview, a medical appointment or a friend's place — simply because they can't get around," Mr Mookhey said.

Funding a 'starting point'

Physical Disability Council of NSW CEO Ed Morris said change was overdue.

"We would have liked action to be taken on this sooner but it's a very, very complicated issue," Mr Morris said.

NSW Taxi Council CEO Nick Abrahim said the short-term funding was a "starting point".

"It's not going to fix the problem completely, however it is a very important step," Mr Abrahim said.

"The New South Wales government has been playing a bit of catch up, particularly compared to the other states who have increased their lift fees a while ago."

The transport minister took aim at the former Coalition government, which in its final months passed laws removing the cap on the number of ordinary taxi licences.

This meant a conventional cab licence could be obtained for a $200 application fee, as opposed to thousands of dollars a year to lease.

The cost-savings presented by wheelchair accessible taxi licences, which are free, were reduced.

An independent review, which in 2020 recommended the changes, noted the "attractiveness of the current incentives for wheelchair accessible taxis … will be diminished when licenses are available at minimal cost".

Shadow Transport Minister Natalie Ward defended the Coalition's reforms, which she said made point-to-point travel far cheaper for most people.

Ms Ward said services for people with disability had worsened under Labor.

"We support action working with the industry to fix a supply-side problem, which the government should have done well before now," she said.