Myki fares will rise almost five per cent on New Years Day, in the biggest increase in three years.
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Fares will rise by an average 4.7 per cent on January 1, the Andrews government has confirmed.
A full-fare two hour trip will rise from $4.10 to $4.30 and a daily full fare from $8.20 to $8.60.
Public Transport Users Association president Tony Morton said the fare rise was not surprising but unwelcome.
Fares have been increased on January 1 every year for the past four years, by 2.5 per cent plus CPI.
Dr Morton said people travelling longer journeys across zones one and two were still getting a good deal after fares were capped at zone one prices in 2014, but shorter trips were becoming costly.
"It's still bad news for the majority of travel in Melbourne, which is just across a couple of suburbs," he said.
"This is what we warned about when this zone one capping came in, that it could be used as a pretext to just hike the effective flat fare."
In a sweetener, the government will also make off-peak travel free for primary school students in groups, between the hours of 9.30am and 3.30pm.
Carers of people with disabilities will also be given free travel on weekends, across up to two zones.
Currently carers have free travel on Sundays only.
"Next year, we're making primary school excursions easier and helping carers get around the city to support those they care for," Public Transport Minister Jacinta Allan said.
Public Transport Victoria will publish the new fares online on Saturday.