The secret one percent Rail Improvement Charge (RIC) introduced in Victoria to help fund the $34.5 billion first stage of the Suburban Rail Loop (SRL) has raised allegations that it may constitute corruption under expanded integrity laws proposed by Deputy Premier Ben Carroll, a former head of the state’s anti-corruption watchdog has warned.
The RIC, devised by former Premier Daniel Andrews in 2021 and implemented by Premier Jacinta Allan in late 2024 during Carroll’s tenure as deputy premier, was never publicly disclosed. It began being collected from January 2025 and was projected to raise approximately $8 billion by 2062. The Victorian Auditor-General’s Office (VAGO) exposed the charge last week and criticized the government’s funding approach and lack of transparency surrounding the SRL project.
Robert Redlich, the former commissioner of Victoria’s Independent Broad-based Anti-corruption Commission (IBAC) from 2018 to 2022, said the levy may have been imposed with improper motives not serving the public interest. He suggested that if this were proven, it would amount to a breach of public trust under broad definitions of corruption applied by federal and state anti-corruption bodies such as the National Anti-Corruption Commission (NACC) and New South Wales’ Independent Commission Against Corruption (ICAC).
Redlich indicated that IBAC’s expanded jurisdiction, as envisioned by Carroll, could allow it to investigate the levy retrospectively, examining the knowledge and intent of those responsible for its introduction. He also highlighted potential overlap with Victoria’s ongoing royal commission into the construction sector, which might extend its remit to scrutinize the planning and governance of major infrastructure projects.
Concerns raised by Redlich and former Victorian Ombudsman Deborah Glass include criticisms of the SRL’s business case, planning, consultation, and transparency. Both have called for the royal commission to review the processes behind the approval and delivery of large infrastructure projects, warning that insufficient integrated planning of transport, land use, and infrastructure can increase risks of corruption and misconduct.
The VAGO report revealed that the RIC was expected to direct about 60 percent of its revenue, approximately $4.8 billion, to the SRL East project. However, the secretive nature of the levy circumvented public scrutiny and accountability.
Carroll, speaking on Sunday, confirmed that the royal commission had the broadest possible terms of reference and that nothing was off limits for scrutiny. He also emphasized the government’s intention to introduce retrospective investigations into corrupt conduct and enhance IBAC’s “follow-the-dollar” powers to trace public funds more effectively.
Anticorruption expert Geoffrey Watson called for an internal government inquiry to clarify how the levy was devised and approved, urging transparency by releasing relevant documentation to the public. He added there appeared to be no legitimate explanation for the secret charge and likened it to unjustifiable corporate misconduct if applied to a publicly listed company, with Victorian taxpayers acting as shareholders.
Multiple senior Labor sources have confirmed that Carroll and Deputy Premier Gabrielle Williams were aware of the levy, which was approved by the budget and finance committee, on which Carroll sat from 2024. However, there are conflicting accounts over whether the charge was ever presented to the full cabinet for approval.