Report: wheels are coming off community transport
It’s not just about taking seniors on a nice day out, community transport can be lifesaving. So, why is it in crisis and what’s the solution?

Community transport is a vital service for older Australians, people with disability, and those facing transport difficulties.
But new research has found the buses and other transport used by community providers to transport older people are ageing and need replacing. It also found the funding model is not fit for purpose, and threatens the future of community transport, and potentially the lives of staff and passengers.
A new report from researchers at the University of Adelaide proposes a national pricing model to address longstanding issues with the current Commonwealth Home Support Program funding system.
The system relies on a flat per-trip subsidy regardless of the actual cost of service delivery, estimated to be $68, compared with the flat subsidy of $35.
The report says this approach has led to chronic underfunding, particularly for providers operating in regional and remote areas or supporting participants with complex needs.
“The current system pays the same subsidy for every trip, irrespective of distance, geography, or the level of support required,” said Professor Akshay Vij, from Adelaide University’s College of Business and Law.
“This has resulted in a mismatch between funding and real-world costs, placing significant financial pressure on operators and threatening the long-term viability of services that many Australians rely on.”
A new model is needed
The report proposes a National Community Transport Pricing Model – a variable pricing formula that better reflects the true cost of the service and links the government subsidy to costs such as trip distance, participant needs, and geographic location.
Professor Vij says appropriate funding would allow providers to operate sustainably, enhance safety, support community involvement, invest in fit-for-purpose technology, and replace ageing vehicle fleets – all of which are essential to maintaining reliable services.
If services financially collapse, the impact on vulnerable people could be dire, even in unexpected ways.
For example, drivers serve as a point of contact and a source of reassurance for people who are isolated or vulnerable. When people cannot access these services, they may miss life-saving medical treatment, become isolated in their homes, or experience declining mental health.
Providers say the interaction between driver and passenger can sometimes be the only person-to-person contact a client has all week.
One community transport provider involved in the study highlighted the broader care role drivers play.
“Drivers are care workers. We don’t just do transport,” the provider said.
“Drivers make observations and identify issues to the care teams who can look at additional supports or reassess.”
The model is now being presented to industry stakeholders and policymakers to build support for implementation.
The research background
The Australian Community Transport Association worked with Adelaide University and 31 community transport providers across metropolitan, regional, rural, and remote Australia to ensure that the research provided practical outcomes for providers and participants.
Researchers analysed more than 175,000 trips to estimate the true costs of service delivery and to understand how those costs vary across different participant groups, geographic settings, and operating models.
Community transport is a lifeline
The research also captured the experiences of community transport users. One participant, Colin (not his real name), who has been blind since he was 15, lives alone in the small rural town in Victoria where he grew up.
While he can manage short walks locally, he relies on community transport twice a week to attend dialysis appointments in a regional city more than 90 minutes away.
“The medical bus picks me up right at my doorstep,” Colin said.
“Chatting with Cathy, the volunteer driver, is a highlight of my week and I can feel reassured that I’ll never miss an appointment. Without Cathy and the bus, I’m not sure what would happen to me.”
Another participant, Mary, 73, has Parkinson’s disease and has no family to support her continued living at home in the outer suburbs of Sydney.
“I haven’t been able to drive in a while now and the only public transport nearby is the bus – impossible for me to even get to the bus stop now, let alone navigate the city,” Mary said.
“I use a community transport car to get to all my medical appointments – they come in and help me get to the car and then take me straight to the waiting room.
“But it is more than just a lift to the doctor, I have a great relationship with my regular driver and often get to chat with others using the service too. It’s a lifeline.”
Related reading: University of South Australia report, CTA
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