Victoria’s Labor government faces scrutiny over a previously undisclosed $8 billion Rail Improvement Charge that was used to help fund the Suburban Rail Loop (SRL), a major infrastructure project. The levy, set at 1 percent on all public transport fares, was introduced in late 2024 under former premier Jacinta Allan but only came to light publicly in early 2025 following a report by the Victorian Auditor-General’s Office.

Cabinet records reveal that the Rail Improvement Charge was included in briefing materials for the full cabinet as early as June 2024 and was discussed in several meetings of the government’s budget and finance committee throughout 2023 and 2024. Despite this, there is disagreement within the Labor Party about which ministers knew about the levy and when. Premier Ben Carroll, deputy premier prior to his current role, and Gabrielle Williams, who was public transport minister at the time, have been at the center of a dispute over their knowledge and involvement.

Senior Labor figures close to Ms Allan have suggested Ms Williams was responsible for keeping the levy secret, asserting that the charge should have been disclosed publicly before Ms Williams’ December 20, 2024 press conference announcing public transport fare increases. However, sources close to Ms Williams deny these claims, stating she initially opposed using the levy to fund the SRL and was not responsible for withholding disclosure. They say Ms Williams was briefed on how to respond to questions about the levy and was surprised when no questions arose during the press conference. Some officials argue the omission of the levy from the December 13, 2024 budget update indicates other parties were responsible for keeping it off the public record.

The budget and finance committee, which Mr Carroll joined in September 2024, approved the charge, though it later reversed a plan to tie 60 percent of the revenue specifically to the SRL, redirecting funds to the broader Public Transport Fund to improve services across the network. Mr Carroll has since disavowed the levy, describing it as lacking transparency and accountability, and vowed to abolish it.

The controversy surrounding the levy has intensified as the SRL project itself faces criticism. The Auditor-General warned the SRL’s budget risks being exceeded and highlighted a lack of transparency in its funding. Labor’s handling of the levy and SRL financing has become a significant issue ahead of the state election scheduled for late 2026. Opposition leader Jess Wilson has pledged to pause and review the SRL if elected.

The dispute over the Rail Improvement Charge reflects broader tensions within Victorian Labor following leadership changes and ongoing financial pressures. Some experts, including former anti-corruption commissioner Robert Redlich, have suggested the secrecy around the levy could raise concerns under expanded integrity laws championed by Premier Carroll. The issue remains a focal point in debates about the state’s fiscal management and infrastructure priorities as the election approaches.