"Where are . . . , the public transport systems?"
The State controls/runs Sydney's trains and busses (and not very well, if one believes the papers).
Where are the private passenger trains in Sydney and the rest of NSW?
Private busses in Sydney are strictly regulated by Government and are usually relegated to the outer suburbs.
The State of Victoria has privatized passenger rail services that don't seem to run any better than those of NSW.
Yes, you are correct, and I actually travel by the public trains several days a week. It's Sunday and I was a little lax. Thankyou for correcting me, I do get carried away with rhetoric sometimes.
Anyway, definitely some parts of the rail, bus and road transport (people and freight) system generally have been privatised. And correct me if I am wrong please, but the majority of people use an alternative means if preference - the private car. A car is a competitor to public transport. In the old days, when we were young, the balance was on public transport I think, today the balance is more on private transport. That is the gist of my previous post.
The size of Government is self limiting by the proportion of a societies monies it can collect via direct and indirect taxes, and/or by it's efficiency or useful to that society.
Therefore if a Government gets too expensive and/or doesn't deliver value for money, it will lose office or people will select alternative to Government services. The size of a Government is self limiting as we all know the larger an organisation gets, public or private, the more inefficient it becomes generally.
I recall IBM once did a study concluding that the optimal size of an IT organisation at that time, was about 5,000 people. I wonder what the optimal size of Government in Australia is.