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Public Transport Fares: Why Free Fares Don't Work | Transport Strategy Deep Dive Why do we pay for public transport? And should we? In this episode, transport strategists Graham McCabe and Russell King challenge common assumptions about fare policy and reveal why popular "cheap fare" schemes often backfire. What We Cover: The Fare Debate Why low or free fares don't reduce car use, and actually pull people away from walking and cycling instead. The evidence from Melbourne's free trams and Queensland's 50-cent fare experiment. Peak Demand Management How differential pricing could spread peak demand across the day, and why most systems only run at capacity 3 days a week post-COVID. The Hidden Costs of Popular Policy Why politically popular low-fare schemes lead to service cuts, maintenance backlogs, and long-term system decline. Case studies from Kentucky, Vienna, and across Australia. Cost Recovery Reality Check London recovers nearly 100% of operating costs through fares. Australia averages less than 20%. What's the difference and why does it matter? The Road Subsidy Elephant How hidden subsidies for driving dwarf public transport investment, and why road user charging could change everything. Welfare vs Universal Subsidy Why blanket concessions are poorly targeted, and how fare reform in NSW successfully improved both cost recovery and social equity. Key Takeaways: Free/low fares primarily shift trips from walking and cycling, not driving Steady fare increases work better than fare shocks Unsustainable fare policies create a predictable spiral of service deterioration Road user charging may be the key to rational public transport pricing Current fare policies represent a "smorgasbord of bad policy" driven by politics over evidence Featured Experts: Graham McCabe - Founder, Step Advisory - www.stepadvisory.au Russell King - Transport Strategist & Founder, Transport Leader Newsletter and Blog - www.transportlc.org 🔔 Subscribe for more evidence-based transport policy discussions 💬 What's your experience with public transport fares? Share in the comments 👍 Like if you learned something new about transport economics