Police are investigating the incident which happened on Gavarnie Way at 9.40am.

The girl was taken to Peel Health Campus before being transferred to Princess Margaret Hospital in Perth yesterday.

Peel inspector Phil Clews said the baby was run over by the taxi as it was reversing out of a driveway.

On Thursday afternoon she was listed as being in a critical, life-threatening condition.

Police are interviewing witnesses and the taxi driver, who is believed to be in his 60s.

Insp. Clews said it was a “tragic incident” which would have a significant impact on the family and police officers.

“It will impact on us all and our thoughts are with the family,” he said.

He said there were other people, including children, in the front yard at the time of the accident.

The baby’s parents accompanied her to the hospital.