Millions of Victorians hit with secret public transport fee, audit reveals

Millions of Victorians have been paying a hidden public transport fee for more than a year to help fund the $34.5 billion Suburban Rail Loop (SRL).

A scathing Victorian Auditor-General’s audit revealed the “rail improvement charge” was slapped onto all state transit routes in January 2025 without public knowledge.

The levy is built into public transport fares and has been collecting money for the controversial project for more than a year.

“The strategy to fund the project is not transparent and involves significant uncertainty,” the audit states.

“The government first approved the levy in August 2021,” the audit said. At the time, now-Premier Ben Carroll was public transport minister.

The revelation comes as the Auditor-General raised serious doubts over the cost, timeline and funding of SRL East, the first 26-kilometre section of the planned 90-kilometre rail loop.

The government says SRL East, which will run through twin tunnels between Cheltenham and Box Hill with six new underground stations, will cost up to $34.5 billion and start taking passengers by 2035.

Auditors warned the project is “more likely than not” to blow past its official price tag, citing ground conditions, higher market prices, and added costs.

The project also has a $5.5 billion funding gap as of June this year.

Auditors warned uncertainty surrounding key funding sources could require further borrowing or new revenue measures to cover the project.

Delays are also threatening the government’s 2035 opening target.

One early works package finished about six months late, while procurement for station packages is running about a year behind schedule.

The government has signed $13.2 billion in contracts as of June, but still doesn’t have the approved funding to sign the second station package.

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The audit lands just 24 hours after Carroll promised to trim $2 billion from SRL East’s price tag.

Victorian Opposition Leader Jess Wilson previously told 9News that a Coalition government would halt work on the SRL before Christmas if elected.

Nine.com.au has contacted Minister for Public Transport Vicki Ward for comment.