A Fire and Rescue NSW spokesperson said they were called to Weston Street, Revesby, about 8.50am where they found the bus well alight.
Resident Kevin Kean noticed the fire and alerted the bus driver, who removed the passengers.
Mr Kean was sitting on the front verandah when he saw the bus coming up the street “with smoke pouring out the back”, before it stopped in front of his house.
“I noticed a little bit of a naked flame and banged on the door and told the driver you will probably want to get these kids off the bus because it’s on fire,” he said.
The bus was completely destroyed and no-one was injured.
