Tasmania weighs indefinite extension of free public transport

Tasmania is assessing whether to make public transport free indefinitely, with Transport Minister Kerry Vincent saying the government is examining costs before deciding whether to extend the arrangement beyond July 2027.

The government initially removed fares for three months in March in response to high fuel prices. The state budget subsequently extended the measure until July 2027, costing A$24 million.

Vincent said patronage had grown, but the government needed to assess operating costs for Metro and general access buses alongside the benefits of encouraging people to use public transport. No targets had been set for deciding whether the policy was worthwhile, although he wanted passenger numbers to increase.

Work on a new electronic fare system has been paused during the assessment. Building Tasmania put the value of the government's contract with Cubic at A$27.7 million, of which A$11.9 million had been paid. Vincent could not say what consequences might follow if the government withdrew from the contract.

A system to count passengers remains a possibility even if fares do not return, to help the government assess demand.

Transport consultant Steven Burgess said removing fares improved convenience and access, but much of the growth reflected additional journeys rather than people switching from cars. He also said a permanent policy would require substantial investment to address unequal service quality, with some outer suburbs receiving poorer services than wealthier areas.