Victorian Premier Ben Carroll has committed to abolishing a previously undisclosed 1 per cent levy applied to public transport fares across the state, following revelations by the Victorian Auditor-General’s Office (VAGO) about the secret charge. The levy, introduced in January 2025, was found to have been implemented without public disclosure and without transparency, prompting criticism from both government officials and the opposition.

The VAGO report, released Wednesday, detailed that over 60 per cent of the revenue raised by the levy—estimated at $4.8 billion through to 2062—was allocated to fund the Suburban Rail Loop (SRL) East project, an underground rail line planned to run between Cheltenham and Box Hill. The report highlighted that SRL East, which the federal government has pledged $6 billion to support, is at significant risk of cost overruns beyond the original estimate of up to $34.5 billion and is unlikely to commence operations by the government’s target date of 2035.

Carroll, who assumed the premiership after Jacinta Allan, apologized to Victorians for the levy’s secret implementation, describing it as lacking transparency and accountability. While he acknowledged serving as public transport minister in 2021 when the charge was approved, Carroll stated he was not involved in its creation and has declined to specify when he first learned of the levy. He indicated ongoing discussions with departmental officials to identify any other undisclosed charges and confirmed his and Treasurer Tim Pallas’s intention to abolish the levy following a formal cabinet process.

“This charge was created and implemented without transparency and accountability,” Carroll said. “Victorians do deserve better public transport. They also deserve to know what their money is buying.”

Deputy Premier and former public transport minister Gabrielle Williams acknowledged that the levy failed to meet public expectations and said she was aware of the charge at the time of announcing fare increases in January 2025. However, Williams contested VAGO’s finding that the revenue funded SRL infrastructure, asserting instead that it was directed toward public transport services. She also denied being aware of any deliberate efforts to obscure the nature of the fare increases.

Opposition Leader Jess Wilson condemned the levy as a “fundamental breach of trust” between the Labor government and Victorians. Wilson criticized Carroll for only moving to eliminate the charge after its existence was exposed by the Auditor-General, suggesting the premier’s apology was motivated by being caught rather than genuine regret. The opposition has pledged to pause and review the SRL East project if it wins the state election scheduled for November.

Carroll confirmed this week that the government will continue with the SRL East project at a revised estimate of $32.3 billion, down from previous projections by approximately $2 billion. However, he did not provide details on how the government plans to offset the funding shortfall resulting from the repeal of the levy.