Victorian commuters have been promised the removal of a little-known public transport levy that had been built into annual fare rises since January 2025. The announcement matters to Indian-Australian families across Melbourne and regional Victoria, particularly those who rely on trains, trams and buses for work, study and school travel.
Premier Ben Carroll said on Thursday that he and the treasurer intend to abolish the ‘rail improvement charge’ after the Victorian Auditor-General revealed it had not been transparently disclosed. However, the change still requires a cabinet process, and the government has not yet announced when it will take effect or whether future fares will be adjusted.
What was the rail improvement charge?
The Victorian Auditor-General’s Office report says the charge added an extra 1 per cent a year to public transport fares, on top of normal Consumer Price Index adjustments. It began on 1 January 2025 and applied in practice across metropolitan and regional services, including concession fares.
The levy was designed as part of the funding strategy for Suburban Rail Loop East, the 26-kilometre underground line planned between Cheltenham and Box Hill. The government intended to direct 60 per cent of the levy’s revenue to the project.
Auditor-General estimates cited in the report put the levy’s total revenue at about $8 billion in net present value terms through to 2062, with about $4.8 billion allocated to SRL East. The report described it as the project’s largest single value-capture revenue source.
Why has the government moved to scrap it?
The central issue is transparency. The Auditor-General found that the government and transport authorities did not identify the additional charge in public communications about fare increases in 2025 and 2026. The report also questioned whether asking passengers across Victoria to fund a project concentrated in Melbourne’s eastern suburbs was fully consistent with the state’s own value-capture principles.
Carroll said Victorians deserved to know what their money was buying and announced his intention to abolish the charge. His statement followed the release of the audit, which also warned that SRL East faced schedule, cost and funding risks.
The project remains planned, and scrapping this particular charge does not mean the Suburban Rail Loop has been cancelled. It does create a fresh funding question for the government because the levy was expected to provide a substantial long-term revenue stream.
What does this mean for your Myki costs?
For now, commuters should keep paying the published fare shown by the Myki system. Thursday’s announcement was an intention to remove the charge, not an immediate change at station gates or on buses.
- No automatic refund has been announced: There is currently no confirmed repayment for fares already paid since January 2025.
- No start date has been confirmed: The government still needs to complete its cabinet process and explain how the charge will be removed.
- Other fare adjustments may continue: Abolishing the additional 1 per cent levy does not necessarily stop future CPI-linked fare changes.
- Concession rules are unchanged: Students, seniors and other eligible travellers should continue using their existing concession entitlements.
Why Indian-Australian households should watch the details
Melbourne’s Indian community has a strong presence in growth corridors and suburbs served by busy rail and bus networks. For households with several daily travellers, even small, compounding fare rises can add to pressure from rent, groceries, childcare and energy bills.
The policy debate is also relevant beyond Melbourne. The audit found the charge was applied through Victoria’s integrated fare structure, meaning regional passengers contributed even though SRL East is a metropolitan project. Families in Geelong, Ballarat, Bendigo and other regional centres should therefore watch the government’s implementation announcement as closely as metropolitan commuters.
What commuters should do next
Do not change travel plans or expect a lower Myki deduction until official fare tables are updated. Commuters can:
- check current prices and concession eligibility on the Public Transport Victoria fares page;
- retain Myki statements if they want a clear record of household travel spending;
- watch for a government announcement confirming the abolition date and revised fare settings; and
- be cautious about social-media claims promising refunds or asking for Myki or bank details.
The practical takeaway: the levy is set to be abolished, but the immediate price of a trip has not yet changed. Victorian Indian-Australian commuters should wait for formal fare updates and judge the policy by the final implementation details, including timing, future fare calculations and how the resulting SRL funding gap will be managed.
Sources
Victorian Auditor-General’s Office: Delivering the Suburban Rail Loop; Guardian Australia live report, 27 August 2026.