A $250 travel card for regional NSW students and apprentices is under review.

The Regional Apprentice and University Student Card, a NSW government initiative aimed at alleviating the financial burden on apprentices and students in regional area, has come at a significant cost for taxpayers. 

Initially promoted as an election promise by the state’s LNP coalition, the $250 prepaid travel card is now up for review.

The card, designed to assist with living expenses, enables recipients to spend the allocated $250 on various transportation services including fuel, TrainLink, public transport, taxis, and private coaches. 

Since its launch, the project has attracted 6,118 participants, with expenditures exceeding $5.5 million. 

An analysis of the program's costs reveals that each card has incurred an average expense of $903.08, including allocation expenses of approximately $1.5 million and implementation costs of $4 million. 

Implementation costs encompass bank account fees, plastic production, delivery logistics, and administrative expenses associated with integrating the cards into service stations and public transport providers.

Regional Roads Minister Jenny Aitchison has expressed her concern over the financial implications of the project, which has been funded from the transport budget. 

She highlighted the opportunity cost, stressing that the funds allocated to the travel card could have been utilised for much-needed road repairs. 

Aitchison said road conditions have a major impact on the cost of living in regional NSW, citing lost productivity, vehicle damage, and time off the road as significant issues.

She also noted a lack of control over travel card usage, as there is no mechanism to prevent individuals from using the funds for discretionary purchases like soft drinks and snacks at service stations. 

Considering these factors, she did not rule out the possibility of discontinuing the program.

In response, Shadow Regional Roads Minister Sam Farraway argued that the initiative had effectively addressed cost-of-living concerns and cautioned against its potential termination. 

Farraway criticised the government for obstructing the program's expansion by not allowing university students to enrol. 

He accused Aitchison of engaging in manipulative accounting practices, asserting that the average cost per person would decrease with increased participation.

Initially launched as a two-year trial in Dubbo, the travel card has thus far been made available exclusively to apprentices, with university students unable to access its benefits. 

The program was originally slated to be accessible to university students in April of this year, and the trial was intended to continue until the end of 2024. However, the current review raises doubts about the card's future.