The Tasmanian government says an agreement has been finalised to roll-out a "smart" ticketing system for Tasmania's public transport network.
Cubic Transportation Systems — a multi-national transport ticketing provider — has been contracted by the Tasmanian government to deliver the system.
It will allow commuters to pay for public transport via bank card or smart device, rather than a local card that needs to be pre-loaded, using similar technology to other major cities across the world.
The company is also working with the Queensland government on their public transport ticketing system which, when first announced in 2019, was set to cost $371 million.
Tasmanian Transport Minister Eric Abetz said the agreement with Cubic "piggybacks" off a partnership with Queensland's Department of Transport and Main Roads to bring the technology to the small island state.
"We've been able to tap into a service that, in the past, has only been provided to a lot bigger markets," Mr Abetz said.
Mr Abetz said the 2024/25 budget contains $35.4 million dollars over the next four years towards the program.
The Tasmanian Liberal government has promised a smart ticketing public transport system for several years.
Last year, a Tasmanian budget estimates committee heard the state had signed a deal with Cubic to implement the system, which at the time was budgeted to cost $28 million.
Cubic vice president Dino Beverakis said he expected public transport usage to increase once the technology was implemented.
"Globally, we've seen that uptick, because when you make it simple for riders to commute, when you allow them to use the technology that we have in our devices and our cards, you give them that mobility," Mr Beverakis said.
Mr Abetz said on-road testing will occur over the next 12 months and will then be rolled out to about 300 buses.
"It is expected that the on-road trials will commence in late 2025, before proceeding to a statewide roll-out in stages during the first half of 2026," Mr Abetz said.
The Queensland government has already begun rolling out its smart public transport payment system along with an election pledge to extend 50 cent fares.
Metro chief executive Katie Cooper said the new ticketing system would be critical for building confidence in the bus network.
"The introduction of a contemporary, integrated ticketing system will greatly benefit the travelling public and make it easier for everyone to use public transport," Mr Cooper said.
As part of its re-election bid, the Liberals promised to cut bus and ferry fare prices and "take back" some control of Metro, which has come under fire over high staff turnover and delivering unreliable services.
Last year, Metro announced it was indefinitely cutting 180 Hobart bus services to address the reliability concerns.
"Tasmania has its issues there," Mr Abetz said.
"Metro is working through a training program, getting a few more drivers on board."
The state has halved the price of public transport fares since June in an effort to entice more Tasmanians to use the bus network.
Mr Abetz said 2 million passengers had used the discounted public transport network.
A live bus tracking network, announced in July, will be introduced by the state government by the end of the year for Metro, Tassielink, Kinetic, Manions Coaches and Calows Coaches, as well as Derwent Ferries services.
An expanded ferry service network for the River Derwent is also in the works following a successful trial service between Bellerive and Hobart's Brooke Street Pier.
Initially envisioned as a 12-month trial in 2021, the 15-minute ferry commute has proved popular with people looking for a transport alternative and trial has been extended to 2025.
The 2024/25 budget also includes $1.4 million for Metro to undertake an electric bus trial.
Mr Abetz said the government was not considering privatising Metro.