Public transport will be free across Sydney's entire network for 12 consecutive days during the Easter holidays.
Free public transport will begin on April 14 and run for 12 days and will include Anzac Day.
The free travel comes after weeks of tense negotiations between the state government and rail union over pay and workplace conditions which culminated in a 24-hour shutdown of the train network last month.
NSW Transport Minister David Elliott this morning said the move was "not just a union versus Transport for NSW initiative".
"We need to stimulate economic activity and Business Sydney were advocating in favour of these fare free days as a means to get people into the city, into Parramatta," he said.
Mr Elliott said the free transport would be available "from Newcastle to the Blue Mountains to the South Coast".
The free travel will include trains, buses and ferries, but not private ferries, the airport line and Point to Point bus service.
Mr Elliott said it would be a "wonderful opportunity for families to save money", with the free transport taking place during school holidays and including events such as the Royal Easter Show and NRL matches.
The Transport Minister said he had spoken to the union over the free travel and hoped it would "set aside" its threat of further industrial action as a sign of "good faith".
The NSW Rail, Tram and Bus Union (RTBU) earlier said it would use industrial action to "force" the state government to offer free fares to commuters every Friday until June.
RTBU secretary Alex Claassens said the move was fallout from the government's decision to shut down the train network without warning last month, locking out workers and leaving thousands of commuters stranded.
The union confirmed that the industrial action planned would be similar to that taken in the lead-up to February 21, when Transport NSW took the eleventh-hour decision to shut down the entire network due to "safety concerns".
Mr Elliott said part of the reason for the 12 days of free travel was to compensate commuters for the disruptions on the rail network.
"The shutdown of the network last month was something that needed to be compensated," he said.
"To commuters affected by recent rail disruptions, I want to say a heartfelt thank you for your patience."
