THE Victorian government has backflipped on changes to the school travel subsidy.
It has announced the withdrawal of means testing of the allowance.
The allowance subsidies travel to and from school for eligible students in outer suburban and country areas and can reach up to $1153 a year for private bus travel.
Last October, the government announced new geographic boundaries to determine eligibility and means testing so the subsidy would only be available to families receiving the education maintenance allowance or holding a current health care card or pensioner concession card.
But today, Education Minister Martin Dixon said the changes had led to unintended consequences and the government would dump the means test.
"This government listens to country Victoria,'' he told parliament.
The urban growth boundary changes will remain.
Mr Dixon's announcement follows questioning from Labor MPs in the parliament who have said families in their electorates faced transport bills reaching into the thousands.