South Australia has stepped back from a growing national push to make public transport free, even as fuel prices surge and pressure builds across households, businesses and political circles.
State Treasurer Tom Koutsantonis made it clear on Monday that while the idea of free buses, trains and trams might sound appealing, it is not something the government is prepared to consider right now.
“Yes, it would be lovely to give everyone free public transport and free car parking and a puppy,” he said, in a remark that underlined the government’s position that not everything can be funded, even if it is popular.
SA breaks from other states on free transport push
The decision puts South Australia at odds with other parts of the country. Victoria has announced free public transport across the state in April, while Tasmania is waiving fares until July. New South Wales, like SA, has ruled out the idea ahead of national cabinet discussions focused on the fuel crisis.
Despite rising fuel costs, SA Transport Minister Joe Szakacs confirmed the government has no plans to reduce fares. In fact, public transport usage is already increasing, with validations up 3 per cent compared to the same period last year.
The government’s core argument is financial. According to Koutsantonis, around 90 per cent of public transport costs in Adelaide are already subsidised by taxpayers. Removing fares entirely would place additional strain on the state budget — something the government wants to avoid, especially as it keeps options open in case fuel supply issues worsen.
“The fares are already heavily subsidised,” he said, adding that acting too early could limit the state’s ability to respond to future challenges.
Political pressure and business concerns intensify
The stance has not gone unchallenged. Calls for free public transport have come from multiple fronts — including the SA Liberal Party, the Greens, the South Australian Business Chamber and the Rail, Tram and Bus Union.
Deputy Liberal leader Josh Teague has urged the government to waive fares for three months, arguing that immediate action is needed as fuel costs rise. The Liberals had earlier promised 50-cent fares during the state election campaign, although they secured only five of the 47 parliamentary seats.
Beyond politics, business leaders are increasingly concerned about the economic ripple effects of high fuel prices. Adelaide city councillor Henry Davis said fewer people are coming into the CBD, impacting local businesses that rely on steady foot traffic.
“It’s going to make sure that people keep coming to the city, but it’s also going to relieve congestion, stress and reduce fuel consumption,” he said, supporting the idea of free public transport.
South Australian Business Chamber chief executive Andrew Kay echoed those concerns, pointing to rising absenteeism and more employees requesting to work from home due to transport costs.
“We certainly want to see workers coming to the workplace,” he said. “This is an important part of that, by keeping costs down for workers.”
Kay also warned that some events, including the upcoming AFL Gather Round scheduled from April 9 to 12, are already seeing cancellations linked to fuel costs — a worrying signal for hospitality and tourism operators working on tight margins.
“If they miss out on what’s a peak period, it’s not great for their sustainability for the rest of the year,” he added.
Meanwhile, fuel supply concerns are adding to uncertainty, with some service stations already reporting shortages. In response, the federal government has stepped in, with Prime Minister Anthony Albanese confirming a temporary cut to fuel excise. The move will reduce petrol and diesel prices by 26.3 cents per litre for three months.
That measure may offer short-term relief, but it has not silenced calls for broader state-level action.
For now, South Australia’s position remains cautious. While other states experiment with fare-free public transport to ease cost-of-living pressures, SA is prioritising budget stability and keeping policy options open.
Whether that stance holds will likely depend on how fuel prices, public demand and economic conditions evolve in the weeks ahead. For ongoing updates on this developing story, readers can follow coverage on ABC News Australia.
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