The CLP Government will extend free public bus travel until the end of the financial year.
The decision follows ongoing technical issues with the ticketing system inherited from the previous Labor government.
It comes as part of a broader review into the long-term future of the bus ticketing system, which has been plagued by failures, revenue loss and safety concerns.
Minister for Logistics and Infrastructure Bill Yan said the current system was unreliable and outdated, with parts deemed "end-of-life" as far back as 2020.
"This is a total failure from the former Labor government, and another Labor mess we have had to clean up," he said.
"Despite the Department of Infrastructure's efforts to replace ticketing machines in October 2022, ongoing technical problems continue to disrupt fare collection and passenger data on up to 25 per cent of bus services.
"Revenue losses and safety concerns are two of the major issues plaguing our public transport because of the former government's failure to properly implement a modern, efficient public transport system.
"Over the past year, thanks to the previous incompetent Labor government, the Northern Territory has lost about $1.1 million in revenue due to faulty machines and fare-related issues."
In the face of these significant challenges, the CLP government has extended free travel across the Darwin, Casuarina, Palmerston, and Alice Springs public bus networks until June 30, 2025.
"This measure will ease the pressure on drivers and security staff, who have reported a dramatic reduction in anti-social behaviour during periods of free travel, highlighting the effectiveness of removing fare-related confrontations," Mr Yan said.
"Alternative approaches are being explored, including a potential overhaul of the entire fare structure and improved technology for passenger tracking and data management while keeping the focus on making informed decisions that prioritise safety, reliability, and long-term financial sustainability."
The public bus network remains a vital service for about 3.5 million passengers annually.
The Government will continue to work closely with stakeholders to ensure that the future of public transport in the Territory is fair, safe, and efficient.