Victorian Labor Scraps Secret Public Transport Levy 2026

The Victorian government has announced it will scrap a secret levy on public transport fares, a move that impacts millions of commuters. Premier Ben Carroll revealed the decision on Thursday, citing a lack of transparency in how the levy was created and implemented.

What Was the Secret Levy?

The levy, introduced on 1 January 2025, added a 1% annual increase to all public transport fares in metropolitan Melbourne and regional Victoria, on top of inflation adjustments. Its purpose was to help fund the Suburban Rail Loop (SRL) and other major infrastructure projects.

The existence of the levy was only revealed in an auditor general report tabled in parliament on Wednesday. The report also raised doubts about whether the first stage of the SRL – a 26km stretch of twin tunnels from Cheltenham to Box Hill – can be delivered on time or within budget.

Premier's Response

Premier Carroll stated, "There'll be a proper cabinet process to come, but it's my intention and the treasurer's intention to abolish that charge." He emphasized that Victorians deserve better public transport and to know what their money is buying.

Interestingly, Carroll was the public transport minister when the levy was approved in 2021, but he claims he was not involved in the decision. "I was not part of the creation," he said.

Impact on Commuters

For the average commuter, the levy meant an extra 1% on top of annual fare increases. For example, a yearly pass costing $1,800 would have increased by an additional $18 per year. While seemingly small, it added up across millions of passengers.

Key Takeaways

• The levy was introduced without public consultation or transparency.
• It was designed to fund the Suburban Rail Loop but may be scrapped due to accountability concerns.
• Commuters will not see a refund, but future fare increases will be lower.
• The government promises a proper cabinet process for any future charges.

What Happens Next?

The abolition of the levy will require formal cabinet approval and legislation. Premier Carroll indicated this would happen in due course. In the meantime, the auditor general's report continues to raise questions about the SRL's feasibility.

This move is seen as an attempt to rebuild trust with voters ahead of the next state election. However, it also raises concerns about how the SRL will be funded without this revenue stream.

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