Victoria Premier scraps hidden transport levy following audit

An audit by the Victorian Auditor-General has revealed a previously undisclosed one per cent rail improvement charge applied to metropolitan and regional public transport fares. The levy, which began on 1 January 2025, was intended to help fund the Suburban Rail Loop (SRL) project and was estimated to raise approximately $4.8 billion. The Auditor-General found that the government failed to disclose the charge in public communications regarding value capture packages and fare increases throughout 2025 and 2026.

In response to the findings, Premier Ben Carroll has announced plans to scrap the levy and is seeking to reduce the estimated investment for the SRL project. The government has identified roughly $1 billion in immediate savings from SRL East and has commissioned an independent technical review to identify an additional $1 billion in savings. No further contracts will be awarded for the project until this review is completed, with the total estimated investment now placed at $33.3 billion.