Every Victorian child will get free public transport from 1 January next year, the state government has pledged.
A new youth Myki, valid across the state, will save families up to $755 a year (the cost of a yearly student pass) under the scheme. Anyone under 18 in non-Myki areas will also be eligible to travel for free.
The benefit will apply to all forms of public transport including trams, trains, buses and coach services.
The premier, Jacinta Allan, told reporters on Sunday that public transport was a “great equaliser” that benefited everyone, and that the decision meant public transport would be “free for every child, everywhere across Victoria, every single day”.
The announcement is a key cost-of-living measure in this week’s Victorian budget, and one Allan said she expected would lead to increased use of the network.
Allan was also asked whether the move – which was likened to Queensland’s 50c fare regime – was just a ploy to win votes.
“You have a choice to make,” Allan said.
“You back in working people and families when they are looking to governments to provide real cost of living help right now.”
Queensland’s introduction of across-the-board 50c fares led to drastically increased patronage and was credited with saving several Labor seats at last year’s state election.
Reduced fares have a double impact as a budgetary measure – they allow governments to ease pressure on household budgets but at the same time have a deflationary effect, because they bring prices down.
Asked about the impact of the free fares on the state budget, Allan said: “Through responsible decisions we’ve been focused on investments that go where they matter most”.
The government says more than one million children and their families will benefit. The program will cost $318m over four years.
The public transport minister, Gabrielle Williams, said it would save “many struggling families thousands of dollars a year”.
“Cheaper school runs, cheaper weekends at the footy – and one less thing for families to worry about,” she said.
In its 2025-26 budget, which the treasurer, Jaclyn Symes, will hand down on Tuesday, the government has also funded free weekend transport for seniors. Allan said it would save seniors more than $360 every year.
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Seniors card holders across the state can currently travel for free in neighbouring zones, but this move will expand to encompass the whole state.
The 50% weekday discount will continue.
“We’ve added hundreds more weekend services and now we’re making it free for seniors to travel on the weekend – making public transport an even better option, whether it’s for a trip to see family or to explore Victoria,” Williams said.
The move will cost $2.2m over four years.
On Monday, Allan announced the budget would also contain $5bn for a “public transport blitz”. Most of that money – $4bn – is to start major works turning Sunshine station into a “superhub” connecting train lines, including a future airport line, while $727m is going to “switch on” the Metro Tunnel and $98.7m to boost service frequency on seven train lines.
In a recent report, Infrastructure Victoria said barriers to using public transport included accessibility and frequency. People might not use public transport if they do not feel safe, the independent body said, and established suburbs have better access than newer developments.
Its recommendations included faster bus services running more often, a new bus rapid transit network, more bus and coach services in the regions, and the extension and electrification of trains in the west.
Ratings agencies including S&P Global Ratings class Victoria’s economic outlook as stable. The S&P analyst Rebecca Hrvatin said she expects debt to continue to rise, and forecast the government’s “hefty” infrastructure program would cost $23.5bn a year.
“What we will be looking for in the next budget is the state’s commitment to controlling operating costs and stabilising debt levels,” she said.
– with Ben Smee and AAP
