Victoria’s Labor government has pledged to introduce a $30 weekly cap on public transport fares if re-elected in next month’s state election, aiming to ease cost-of-living pressures for commuters. Premier Ben Carroll announced on Monday that the fare cap would take effect from January 1, immediately following the expiration of half-price fares that were implemented earlier in response to the fuel crisis triggered by the US-Iran conflict.
Under the plan, concession card holders would see their weekly cap set at $15. Existing concessions, such as free travel for children and seniors on weekends, would remain in place. Carroll estimated that the new cap could save frequent travelers up to $1,400 annually, describing it as critical relief amid rising interest rates and escalating petrol costs.
Public Transport Minister Vicki Ward emphasized that commuters would need to use their Myki cards to access the capped fares. This stipulation remains in place despite the recent completion of a system-wide rollout of tap-and-go payment options allowing passengers to pay with bank cards, smartphones, or smartwatches, particularly benefiting concession card holders. Ward acknowledged the government’s intent to enable the cap through tap-and-go payments “as quickly as possible,” but declined to specify a timeline.
The government projects the fare cap will cost approximately A$206 million over a two-year period until December 2028. Officials acknowledged the cap is not sustainable long-term and would be funded through budgetary reallocations, describing the approach as a temporary measure to provide financial relief.
Transport expert Professor Hussein Dia from Swinburne University welcomed the initiative for providing certainty to households during difficult economic times but noted its uneven impact. “The greatest benefits will naturally go to people who already have good access to trains, trams, buses, and travel frequently,” Dia said, pointing out that residents in outer suburban areas with limited public transport options may gain less, despite facing similar financial pressures.
The Victorian Council of Social Service’s Juanita Pope praised the fare cap as sound policy beneficial for household budgets, congestion reduction, and environmental goals. Meanwhile, Greens leader Ellen Sandell called for free public transport, criticizing the Labor government’s temporary discount as insufficient and urging improvements in service frequency, reliability, and accessibility.
Opposition leader Jess Wilson reaffirmed the Coalition’s refusal to match the $30 weekly cap, citing Victoria’s financial situation. Speaking from Mildura, Wilson pledged $51.2 million to restore passenger train services to Mildura and Dimboola by mid-2029 if her party wins government. Wilson also reiterated a prior commitment to a $50-per-week toll cap for two years and described Labor’s toll policies over the past 12 years as unreliable.
The competing transport fare and toll cap promises have elicited calls from the Victorian Chamber of Commerce and Industry for both major parties to exercise fiscal restraint ahead of the November 28 election.