50¢ transport fare not enough to get workers back to the office

The Queensland government recently announced a six-month trial, charging just 50¢ for all public transport services. Questions are now being raised about whether the low cost of commute could incentivise workers into returning to the office.

The cost-of-living crisis is affecting Australians across the country and is squeezing house budgets. Along with those expenses, public transport costs have increased, with the average Aussie spending a daily cost of around $20 to get to the workplace and back home, accumulating to $5,020 per year.

The national expense of this is around $43 billion a year, and painfully, that cost of public transport is still increasing, as Opal fares rose by 3.7 per cent in October 2023.

However, only recently the Queensland government has announced a six-month trial of charging just 50¢ for all public transport trips in the state, regardless of trip length, in an attempt to provide Queenslanders with some relief from the cost-of-living crisis.

Commuters will still need to tap on and off for their journey using Smart Ticketing, a go card, or by buying a paper ticket in order to access the reduced fare, the government said.

Premier Steven Miles said at a press conference: “These days, you can’t get much for 50¢, but soon you’ll be able to go anywhere on our public transport network.”

“This is all about getting cars off the road, easing congestion, making it easier to get around the south-east as well as our provincial cities and addressing the cost of living.”

As work-life begins to return to pre-COVID-19 normality, employers have made various attempts to get their employees to return to the office. Real Insurance recently published The Real Australian Commute Report, which explained the constraints of commuting to work during a cost-of-living crisis.

“Individuals make choices based on their preferences, budgets and time constraints. Subject to constraints, some prioritise shorter commutes by living closer to work hubs, even if it means higher housing costs and lower-quality housing. Others prioritise better living arrangements and may accept longer commutes,” Associate Professor Evgenia Dechter, author of the report, said.

“For many households, the current economic conditions imply tighter budget constraints, putting immense pressure on workers, which may, in turn, affect their commuting and employment choices.”

These financial constraints could, in a way, support a hybrid/flexible working model because it saves the costs of a commute to the workplace, and those savings can be distributed to more pressing matters.

“For those with longer commutes and caregiving responsibilities, working from home offers a significant financial benefit,” Dechter said.

“Employees save on commuting costs, lunches out, and public transport fares, but they also gain time back from their commute to spend more time with friends and family. Additionally, we know that work/life balance is key to employee wellbeing and productivity.”

So, it begs the question, is the cut to transport fees enough to incentivise workers to return to the workplace and abandon their working-from-home model?

HR Leader recently asked Aaron McEwan, vice president of research and advisory at Gartner, this very question, and he struggled to entertain the idea that it could, in fact, persuade workers to come back to the office.

“It costs a lot to go to the office. Public transport or travelling by car is a significant component of that, but it’s not the only cost. So, what I’d say in Brisbane is that they don’t really need to force people back to the office because they’re quite willing to operate on a hybrid model,” McEwan said.

“From a cost-of-living perspective, yes. It’s huge. It’s going to make a difference. The issue is not where people work from. The issue is having access and choice. That’s what people care about. They don’t mind working from the office occasionally. What they don’t like is being forced to work in the office, to do work that they could have done at home without the commute and disruption.”

In line with Premier Miles’ statements, McEwan believes it can be of a huge benefit towards alleviating the cost-of-living crisis for Australians. However, it poses no real incentive for workers to return to the office, as the hybrid model now resides as the new standard.

“It’s definitely more of an impact for their financial wellbeing and saving costs on commutes than getting people back into the office,” McEwan said.