An efficient public transport system is essential for a liveable, modern city. It is good not only for the people who use it – it also benefits the whole community by taking cars off the road.

The challenge is determining how to pay for an expanding system in a way that is fair to those who use a lot of public transport, those who travel occasionally and those who never use it at all.

Right now fares cover about 20 per cent of the $5.5 billion annual public transport cost. That is, a trip with a $3 fare costs around $15 to provide. The other $12 is paid for by taxpayers, for which they get community benefits such as reduced congestion and cleaner air.

In developing our recommendations for changes to public transport fare structures for Sydney and surrounding areas, IPART looked at whether passengers should pay an even lower share of the cost. We have looked at the number of cars taken off the road by public transport, the existing and planned public transport capacity and the cost of raising taxes to subsidise it. We also looked at how much people pay for public transport in other cities.