Premier Ben Carroll has promised to cap the amount paid by full fare holders at $30 a week and concession card users at $15 a week for two years.
It comes a day after Labor also announced it would cap road tolls at $30 a week, while proclaiming itself the party of cost-of-living relief.
Expected to cost the state $206 million, the proposed public transport changes would save a full fare holder who commutes five days a week up to $1400 a year, or $27 a week, nearly halving overall travel costs.
The changes would come into effect from January next year, when an existing policy delivering half-price fares on public transport is scheduled to end.
Under 18's would continue to travel for free indefinitely and free weekend travel for seniors would also remain in place, the government said.
Amid the conflict in the Middle East that raised petrol prices, the government previously made all public transport free throughout April and May, before reverting to half price for the remainder of the year.
Mr Carroll said everyone could benefit under the new capped fare structure, but full-time workers would benefit the most.
"This is real cost-of-living relief that helps a regular commuter save $1400 a year," he said.
"Car, ute or van, train, tram or bus – $30 a week, only under Labor."
For its part, the Coalition has pledged to establish an independent Public Transport Victoria board to ensure a focus on better service delivery for commuters and taxpayers.
It has also promised to spend $1.7 billion to deliver 25 new hybrid electric trains to service Melbourne's expanding western suburbs, doubling passenger capacity on the Melton and Wyndham Vale lines during peak times.
Labor's promise of capped fares also comes after Mr Carroll was forced to apologise for a hidden surcharge on public transport tickets.
The premier vowed to abolish the one per cent levy on fares quietly introduced at the beginning of 2025 and not disclosed by the government in public communications about fare increases around the same time.
About 60 per cent of the levy's revenue was planned to fund the Suburban Rail Loop East, which the government has since scaled back in order to save around $2 billion.
27°C