Newcastle has an "acceptable" bus service but housing estates around Maitland and Cessnock need better public transport, according to a report from the NSW government's bus industry taskforce.
The taskforce published the "Directions for On-Street Transit" white paper on Wednesday outlining proposals for a fairer division of bus services across Sydney, the Illawarra and Lower Hunter.
The paper says the three cities have 6 million people living within 800 metres of a bus stop.
The report says Sydney's eastern suburbs are the only metropolitan "region" to have an all-day frequent bus and tram network, despite also being the only region not expecting high population growth.
"Lower Hunter and Greater Newcastle City and Illawarra-Shoalhaven City are expected to grow at double the rate of the Eastern Harbour City. Yet only the Eastern Harbour City has an All-Day Frequent Network," the report says.
"The Lower Hunter and Greater Newcastle City has large areas of greenfield development in the areas surrounding Maitland and Cessnock.
"The bus network is fragmented: areas around Newcastle have an acceptable service whilst other areas need new or improved services."
The report lists five steps for improving the reliability and frequency of bus and tram services, including improving transport infrastructure and "priority access for on-street transit" ahead of population demand.
It also recommends supporting population growth along a host of rapid bus routes mainly across Sydney but also in the Lower Hunter and Illawarra.
The government said the key challenges the paper aimed to address included increasing public transport access, improving passenger information, better reliability and priority of bus services and tackling congestion to free up public transport movement on roads.
Transport Minister Jo Haylen said the state "can't grow our communities properly if our bus network isn't meeting demand".
"We need to look at best practices from all around the world. If other cities like Manhattan and Amsterdam can do it, so can Sydney. Everyone is a possible bus passenger."
