Community transport provides vital services for older Australians, people with disability, and those facing transport barriers, yet the sector is under financial strain. A new report from Adelaide University researchers has proposed a national pricing model which would deliver fairer, more sustainable funding and reduce the risk of vulnerable people being left without access to transport.
The report addresses longstanding issues with the current Commonwealth Home Support Program (CHSP) funding system, which relies on a flat per-trip subsidy regardless of the actual cost of service delivery. This approach has contributed 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.”
To address this, the research team have developed the National Community Transport Pricing Model, which proposes a variable pricing formula linking the subsidy to costs such as trip distance, participant needs, and geographic location.
“The proposed National Community Transport Pricing Model provides a clear blueprint for a fairer and more sustainable approach,” Professor Vij said.
“It is designed to better reflect the true cost of delivering CHSP-funded community transport services. Appropriate funding would allow providers to operate sustainably, provide participants with added safety, support community involvement, invest in fit-for-purpose technology, and replace ageing vehicle fleets, all of which are essential to maintaining reliable services.”
The research team created the National Community Transport Pricing Model Pilot for the Australian Community Transport Association (ACTA) and funded through the iMOVE Cooperative Research Centre.
ACTA 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 understand how those costs vary across different participant groups, geographic settings, and operating models.
“Community transport is a lifeline for many Australians,” said Dr Lynette Washington from Adelaide University’s College of Business and Law.
“Drivers are a point of contact and reassurance for people who are isolated or vulnerable. When people cannot access these services, the consequences can be serious. They may miss life-saving medical treatment, become isolated in their homes, or experience declining mental health.
“Providers told us that 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 shared.
“Drivers make observations and identify issues to the care teams who can look at additional supports or reassess.”
The research also captured the lived experiences of community transport users. One participant, Colin (not 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, lives with Parkinson’s disease. Mary never married and has no children 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.”
The model is now being presented to industry stakeholders and policymakers to build support for implementation. ACTA is also exploring future projects to expand on the research.
“ACTA represents community transport providers across the country and sees the implementation of this research — including the grant-based approach nationally and the commissioning of services in areas where there is low density of population, commonly known as ‘thin markets’ — to be crucial to peoples’ overall mental and physical health,” said Murray Coates, ACTA CEO.
ACTA thanked Adelaide University and iMove for their commitment to this work.