I think there is something in Superman's scepticism about assumptions of growth - it does feel rather magical. I also share the scepticism about the prospects for material net extra funding.
But also Adrian is right to highlight how much of the operators' income is public funding these days. IF there is net new public funding that gives any scope for improved services, the current deregulated environment makes that very difficult to achieve as soon as it impinges on "commercial" services. It is possible that Burnham's ideas on devolution will give extra scope, too.
The barrier to material bus priority is surely an unwillingness to cause much upset to car drivers, not lack of powers or lack of certainty about the details of future bus services.
re Centrelink: only slightly tongue in cheek, was this not a case of a poor scheme in the first place? I suspect it was case of "we want to do something; this is something that can be done (using ring-fenced special funding?), so let's do it" . Do we really think the world would be better if buses were forced to go that way?