Opal is removing the penalty for switching between trains, buses, ferries and light rail as part of the same journey.
The new 'transfer discount' is a $2 discount given to all adult Opal card holders, and a $1 discount given to concession card holders.
The discount targets commuters who change between modes of transport to reach their destination. It applies every time a customer taps on within 60 minutes of tapping off their previous trip - meaning an adult Opal customer who uses three transport methods on their commute will receive a $4 discount.
NSW Transport and Infrastructure Minister Andrew Constance said thousands of customers who change between modes will notice savings.
“We’ve always said we want as many people to use multiple forms of transport to get around, and removing the penalty for switching modes is the best way to encourage it,” Mr Constance said.
Opal card fares will remain frozen until July 2017, which means fares won't have increased on buses and light rail since January 2014 and on trains and ferries since January 2015.
The Opal Weekly Travel Reward is also receiving an update, with customers receiving a 50 per cent discount on all fares after their eighth paid journey for the week. It applies in conjunction with the 30 per cent off-peak train fare.