The State Government has announced a $432 million cost-of-living package aimed at easing pressure on commuters, including those in East Gippsland who rely on regional rail and coach services to travel to and from Melbourne.
The 2026/27 State Budget measure extends free public transport until the end of May, before introducing half-price fares from June 1 to the end of the year. Under the changes, a full daily fare will drop from $11.40 to $5.70, with regular commuters expected to save more than $850 over the second half of 2026.
Premier Jacinta Allan said the move was designed to provide immediate relief for households under pressure from rising living costs and fuel prices.
“Free travel now – cheaper fares next,” she said.
“I’m determined to do everything in my control to help Victorians who are under pressure.”
The government says the policy is also aimed at reducing congestion and fuel demand by encouraging greater use of public transport, with “tap and go” ticketing set to return from June 1 across the network.
Public transport will remain free for under 18s and eligible pass holders, with reimbursement arrangements planned for existing myki pass users during the half-price period.
However, Gippsland East MP Tim Bull said the announcement is already putting pressure on regional services, particularly the Bairnsdale line and connecting coach routes, with reports of overcrowding and passengers standing for long journeys into Melbourne.
He said the Government must ensure additional carriages and bus capacity are provided to match demand, warning that some services are already operating beyond safe and practical limits for long-distance travel from East Gippsland.
“Even before this announcement, we had a three-carriage train turn up at Bairnsdale and around 100 people being forced to stand all the way to Melbourne,” Mr Bull said.
“I have raised with the Minister the need for every Bairnsdale train to have six carriages, especially in this free travel period (noting the carriages come in sets of three). If they’re not available, they should be putting on more buses to link up with the trains leaving Traralgon.
