Key facts
- A levy on Victorian public transport fares, set to begin in 2025, will be scrapped.
- Premier Ben Carroll cited a lack of transparency in the levy's creation and implementation.
- The levy was intended to raise $8 billion over 37 years for projects like the Suburban Rail Loop.
- The auditor general's report revealed the levy and raised concerns about project delivery.
- The government did not disclose the levy in its value capture model announcements.
Victorian Premier Ben Carroll announced on Thursday that his government intends to abolish a levy secretly placed on public transport fares, citing a lack of transparency. The levy, scheduled to take effect on January 1, 2025, was designed to contribute to funding major infrastructure projects, including the Suburban Rail Loop (SRL) East.
Carroll stated that Victorians deserve better public transport and clarity on how their money is used. The existence of the levy was revealed in an auditor general's report tabled on Wednesday, which also questioned the timely and budget-conscious delivery of the SRL East project. The levy would have imposed a 1% annual increase on fares, in addition to inflation adjustments.
According to the auditor general's report, the levy was projected to generate $8 billion in today's dollars over 37 years, with 60% ($4.8 billion) earmarked for SRL East, making it the largest source of value capture revenue for the project. The government had not disclosed the levy when announcing its value capture model in December, and Transport Victoria did not acknowledge it in public communications regarding fare increases.
Deputy Premier Gabrielle Williams acknowledged awareness of the levy when announcing fare increases in December 2024 but stated she was unaware of any deliberate obfuscation of the fare structure. Both Carroll and Williams apologized to Victorians for the lack of transparency. The opposition has criticized the revelation of the secret levy as detrimental to the government's standing ahead of the upcoming state election.