Single fares for Sydney’s public transport should be increased by 5 per cent annually over the next four years but more discounts should be offered to regular users, according to the state’s pricing regulator.

In a draft report to the NSW Government, the Independent Price and Regulatory Tribunal (IPART) said passengers were currently paying about a quarter of the overall cost of public transport, with taxpayers funding the rest - the equivalent of $4900 per household.

The independent pricing regulator has recommended the government increase Opal fares by 5 per cent on average. Credit:Edwina Pickles

A 5 per cent annual rise for single Opal fares between 2020 and 2024 would amount to a 30-cent increase for every adult journey on average, according to the regulator.

While the IPART recommended an increase in fares, the draft report also suggests the government introduce a range of cost-saving measures for regular commuters and low-income passengers.