Premier denies ticketless fares revamp is off the rails
Callum Godde |
Some commuters will be waiting even longer to tap on to public transport with phones and credit cards but a premier says the system overhaul is all going to plan.
Buried within Tuesday’s 2025/26 Victorian budget, the Allan Labor government revealed an upgrade of the state’s myki system would be delivered over time and budget.
It was announced in February train passengers would be able to travel with bank cards and their phones from 2026, with 22,000 myki readers to be replaced across the network.
But the budget papers showed the replacement ticket reader program will take up to 18 months longer to finish and cost an extra $137 million.
The project was originally costed at $543.6 million but the figure has blown out to $680.4 million following a “program reset”.
The completion date has also shifted from mid-2027 to late 2028 after the finalisation of ticketing reader design requirements for some trams.
The myki system began to be rolled out in 2007 but was beset with million-dollar cost blowouts and system issues.
Android users have been able to tap on and off for travel on the network since 2019 but iPhones and credit cards cannot be used.
After a failed $1 million trial to find a solution, New Jersey-based company Conduent was awarded $1.7 billion to overhaul and operate the system for the next 15 years.
Quizzed on the program speed bump on Wednesday, Premier Jacinta Allan said 50 per cent of people used Android phones and claimed it was “always going to be a staged roll out”.
“The trials are already under way right now and the work will be rolled out next year,” she told reporters.
“Indeed, for many Victorians, you can already use your phone.”
The Opal system in NSW has allowed all public transport passengers to tap on and off with their bank card or their phone since 2019 and ticketless travel is available on most of Queensland’s network.
New York, London, Singapore, Hong Kong and other major international cities also have digitalised fares.
Opposition public transport spokesman Matthew Guy said the delay was yet another embarrassment for the government and inconvenience for long-suffering commuters.
“The fact that the Victorian government still can’t deliver this in Melbourne is astounding,” he said.
Treasurer Jaclyn Symes started to sell her “responsible” budget on Wednesday after a mixed response from industry, peak bodies and the public.
Her first budget spruiked a $2.3 billion cost-of-living package, record health spending, no new taxes and a return to a $600 million operating surplus next financial year.
Ms Symes gave an iron-clad guarantee the surplus would be realised, despite shrinking $1 billion since December.
“Yes,” she replied when asked if the surplus would survive at an annual post-budget lunch hosted by the Victorian Chamber of Commerce and Melbourne Press Club.
Victoria’s net debt is on track to hit $194 billion by 2028/29, sending interest repayments soaring close to $29 million a day.
The treasurer said the majority of the debt was either “productive” or “necessary” because it came from infrastructure spending or keeping the state afloat during COVID-19.
Ms Symes wasn’t promising tax reform for businesses, including to the $31.5 million COVID-19 levy.
With a budget behind her, the treasurer will fly to New York at the start of June for a trade mission that includes meetings with credit ratings agencies.
Victoria’s credit rating was downgraded by S&P and Moody’s during the pandemic but both class the state’s outlook as stable.
AAP
