The Education Department posted an announcement on social media on Tuesday morning that prices would rise to $1.80 per trip in the new year, sparking concern from parents that the cost of sending their children to school was becoming too expensive.

Mr Hidding said the state government was “very concerned about the cost of living” and cancelled the proposed increase on Tuesday afternoon.

Student bus fares will remain at $1.70 per trip, after increasing 10 cents last year at the same time.

“We know that even a small increase such as this has an impact on the family budget,” Mr Hidding said.

“That’s why I’ve told the department there will be no student bus fare increase in 2018. Instead, fares will now increase by 10 cents every second year, starting in 2019, in line with our commitment to limit increases to the CPI.”

Opposition transport spokesman Craig Farrell said all students would travel free to their nearest school under an elected Labor government.