USING a train, tram or a bus should attract the same tax concessions as driving a car, both Connex and the State Government have told a Senate inquiry into federal funding of the nation's public transport.

"Public transport fares attract no tax concession," Connex's head of corporate affairs, Mark Paterson, yesterday told the inquiry, which is conducting hearings throughout Australia.

"Tax concessions to private motorists should either be removed or similar concessions be afforded to public transport users," Mr Paterson said.

The more kilometres Australian motorists clock up in their company car, the more they are rewarded by the fringe benefits tax system. Less generous tax concessions apply to public transport use. The Brumby Government's Department of Transport also made a presentation to the inquiry, and the department's head of policy, Michael Hopkins, agreed public transport should attract tax concessions, although he said tax incentives for drivers should stay.

"Fringe benefit tax currently treats motor vehicle use and public transport differently," Mr Hopkins said. "We would be seeking more equitable treatment of public transport."