Victoria Extends Free Public Transport Until End of March Amid Soaring Debt

Gross debt in Victoria is expected to hit $236.6 billion by 2029 according to the auditor general.

Victorian Premier Jacinta Allan during a press conference in Melbourne, Australia, on July 2, 2025. AAP Image/Joel Carrett

Victorian Premier Jacinta Allan has extended free public transport across the train, tram, and bus network until the end of May amid the state’s soaring debt.

The measure is estimated to cost $432 million and was unveiled by Premier Allan ahead of the 2026-27 state budget.

Victoria’s gross debt is projected to reach $236.6 billion (US$169.6 billion) by June 30, 2029 according to the state’s auditor-general.

Gross state debt in Victoria hit $187.9 billion in the 2025 financial year, up from $168.8 billion in the previous one.

Allan stood by the measure saying it was aimed at supporting Victorians amid heightened fuel prices due to the U.S.-Iran War.

“We can do this targeted temporary measure from the strength of our budget position,” Allan said on Sunrise.

Allan will also offer half-price public transport until the end of the year, with fares capped at $5.70 per day, down from $11.40 daily.

Opposition Leader Jess Wilson expressed support for the measure but raised concerns it would not help tradespeople, regional residents, and frontline workers who can’t use public transport.

“We need a comprehensive plan to reduce cost of living right across the board,” she told reporters.

Premier Allan also announced on April 20 a $673.6 million spend on 25 new X'Trapolis 2.0 trains, and the next day, a $249 million pledge for maternity services in the western suburbs.

Victoria’s state budget is due to be delivered on May. 5, ahead of a state election on Nov. 28, 2026.

Victoria is not the only state offering heavily discounted public transport.

The Queensland Liberal National Party (LNP) government has made 50 cent public transport fares permanent across the state.

While Labor first trialled the discounted fares during the 2024 election campaign, LNP Premier David Crisafulli matched the policy and locked it in permanently from February 2025.

Meanwhile, South Australian Opposition Leader Ashton Hurn also called for free public transport.

“Businesses in the CBD are noticing a pretty significant reduction in foot traffic. What we’re talking about today is something immediate that the government could be doing when it comes to the free public transport,” she said on social media.