Labour reveals public transport fare cap in long-awaited election policy

Wednesday, 10 June 2026

Labour has promised public transport fare caps of $20 per week in Auckland, Wellington and Christchurch from July 2027, if elected in November.

Regional areas outside main centres would have $10 weekly fare caps.

InterCity buses, Capital Connection, Te Huia and Mainlander trains and Waiheke ferries would be exempt.

The Labour Party has pledged to cap public transport fares at $20 per week, in its first election policy announcement since the Budget last month.

The long-awaited announcement is a sign the party is finally kicking into campaign mode, after months of asking New Zealanders to be patient and wait for the Government’s Budget to set the lay of the land.

Under the policy, public transport fares in Auckland, Wellington and Christchurch would be capped at $20 per week starting July next year. For other areas, the cap would be $10 per week.

Any rides taken after those thresholds would be free.

Most forms of daily commuter public transport would be part of Labour’s fare cap policy, but not quite everything.

Interregional trains, such as the Capital Connection and Te Huia, would not be covered. (However, the Metlink-operated Masterton to Wellington train would be covered.)

Ferries running to Waiheke Island would not be covered, but ferries operating in Wellington, Auckland and Lyttleton harbour would be covered.

InterCity busses and public transport that operates cash-only fares would also not be part of the fare cap.

Labour leader Chris Hipkins said this would be one “of many” cost of living polices Labour would release ahead of November’s election.

“One of the reasons we’ve left our policy announcements up until now, and there’s more to come, is that we wanted to give the Government an opportunity to actually do something to support New Zealanders with the cost of living, which we would support. They haven’t done that,” he said.

Hipkins promised there would be policies designed to help people who don’t use, or can’t use, public transport - such as rural communities.

The policy has been costed at approximately $65 million per year, which was less than 1% of the National Land Transport Fund. Labour planned to use that fund to pay for the policy.

The party estimated it would save commuters, on average, $25 per week - which could total $1200 per year.

Labour transport spokesperson Tangi Utikere said he expected this policy would lead a 6% increase in public transport patronage, based on modelling from Auckland Transport.

He said there were enough trains, buses and ferries to take those extra passengers.

The National Land Transport Fund was also used to pay for roads and other transport projects. Treasury had warned that the fund would struggle to pay for many of the projects governments had promised.

Hipkins said he was certain this policy was worth the investment.

“I am taking those [Treasury] warnings very, very seriously. For $65 million, this benefits a lot more people much more quickly than investments in the roads of national significance, which are much more expensive, and take a lot longer,” he said.

Soon after Labour announced this policy, at Auckland’s Waitematā Station, National’s Simeon Brown had bagged the idea.

“Labour is once again trying to bribe New Zealanders with their own money. This is yet another spending promise from the Labour Party with no plan for how they’ll pay for it,” he said.

He said the National Land Transport Fund was already “oversubscribed”, and said it was “fanciful” to be “siphoning a quarter of a billion dollars” for the policy.