Queensland commuters will enjoy a reduction in public transport costs for the first time in the state's history.
Premier Campbell Newman announced on Sunday the Queensland government would use a spare $30 million in the transport budget thanks to carbon tax savings to reduce fares by five per cent.
It will mean a regular weekday passenger travelling a two-zone trip would save $83.16 a year, he said.
The fare cut was the result of a survey that asked commuters whether they wanted cheaper fares or more services.
"The people of Queensland have spoken," Mr Newman told reporters.
"Seventy four per cent of people said they'd like to see fares dropped - we totally agree with that."
Mr Newman said there would also be a fare freeze during 2015.
The fare reductions will come into effect on November 3.
Opposition transport spokeswoman Jackie Trad said the Liberal National Party's (LNP) privatisation plans after the next election would negate any benefits from the reduced fares.
"If the LNP regains office its privatisation plans will kick in and change the face of our existing public transport system through job cuts, service cuts, and fare hikes," Ms Trad said in a statement.
The next state election is due to be held in 2015.
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