National Community Transport Pricing model

iMOVE’s National Variable Pricing Matrix: Sustainable community transport project has been completed, and we present here an overview of the project and its outcomes.

Background

Community transport is a lifeline for many Australians who cannot access mainstream public transport – older people, those with disabilities, and residents in regional and remote areas. It provides flexible, door-to-door services that help people get to medical appointments, shops, and social activities, while also offering care and connection that taxis or rideshare services cannot match.

But under the current funding model, providers receive a flat per-trip rate, irrespective of the actual cost of service delivery. Flat subsidies often fall well short of the real cost of delivering trips, particularly in rural and remote communities. This has left many operators struggling to stay afloat, jeopardising access to vital services for those most in need.

About the project

To address this, the Australian Community Transport Association (ACTA), the University of South Australia, and iMOVE joined forces on the National Community Transport Pricing Model (NCTPM) Pilot.

The aim was simple but ambitious: design a new pricing model that reflects the true costs of service delivery, ensures financial sustainability, and preserves the participant-centred ethos that defines community transport.

Thirty-one operators across metropolitan, regional, rural, and remote Australia took part in the pilot. The research team combined detailed financial and operational data, trip-level information, and extensive interviews and workshops with providers. This co-design approach gave a comprehensive picture of costs, challenges, and opportunities across the sector.

Findings

The study confirmed what providers have long known: current flat subsidies do not cover the real cost of service delivery. Many operators, especially in regional and remote areas, were delivering services at a significant loss.

The new pricing model developed through the pilot represents a major step forward. Without going into the sensitive details of the formula, we can say that it:

• Links funding more directly to observable cost drivers such as distance, geography, and participant support needs.
• Substantially improves cost recovery for most providers, making services more financially sustainable.
• Maintains the flexibility and personal care that make community transport unique.

It is important to note that some details of the formula are not being released publicly at this stage. This is deliberate, to ensure the findings can be considered carefully by government and sector stakeholders before any policy changes are made

Challenges and opportunities

The pilot also highlighted broader challenges the sector faces:

• Workforce pressures: with labour making up most of the cost base, attracting and retaining skilled staff and volunteers is critical.
• Capital renewal: many operators struggle to fund vehicle replacement and technology upgrades.
• Regional and remote realities: long distances, isolation, and thin markets mean that even the best formula will need additional supports for some operators.

At the same time, the project identified opportunities for greater efficiency, for example, through improved workforce utilisation, better trip coordination, and smarter use of volunteers.

What’s next?

The NCTPM Pilot provides government and the sector with a robust, evidence-based foundation for reform. With careful implementation support, including training, IT integration, and workforce investment, the model could underpin a more equitable and sustainable future for community transport in Australia.

This project has given us, for the first time, a dependable evidence base for funding community transport. It shows that with the right settings, we can sustain these vital services into the future.

Murray Coates, CEO of ACTA

In summary

• Community transport is essential, but chronically underfunded under current flat-rate subsidies.
• The NCTPM Pilot designed and tested a new pricing model that better reflects the real cost of service delivery.
• While details of the formula remain confidential, the pilot shows it significantly improves funding adequacy and fairness.
• Implementation will require ongoing investment in workforce, capital, and systems.

This project represents an important step toward ensuring that community transport remains available, sustainable, and person-centred for the Australians who rely on it most.

UPDATE: Webinar video

On 16 September 2025 iMOVE held a webinar looking at the background and outcomes of this project. The event was recorded, and can be watched at: Piloting a national community transport pricing model