Proposed rule changes will allow heavier buses to carry more passengers.
They'll also pave the way for hybrid diesel-electric buses, Associate Transport Minister Craig Foss says.
The intention is to change the land transport vehicle dimension and mass rules which regulate size and weight.
"Allowing heavier buses that can carry more passengers will reduce congestion in urban areas and increase tourism opportunities in our regions," Mr Foss said.
"It will also increase the viability of introducing hybrid diesel-electric buses, which are heavier due to storage batteries."
Mr Foss has launched a consultation document.
Submissions close on December 21.