Students who live too close to Narara Public School are ineligible to receive a bus pass.
Member for The Entrance David Mehan claims if you live within 1.6km of the Primary School then kids have the choice to either cross the dangerous Pacific Highway or pay $54 a term to ride the bus.
Mehan believes parents at the school are outraged that kids as young as 7 are expected to walk across one of the busiest roads on the coast, where there is no traffic light crossing.
Labor is promising to make public transport free for all school children.