The decision comes amid growing public backlash following the Victorian Auditor-General's report, which found the charge had been introduced without legislative oversight or consultation. The levy, totalling an estimated $8 billion over its projected lifespan, was added to fares under the previous government as a 'sustainability adjustment' but was not disclosed in budget papers or fare announcements.
Premier Carroll described the levy as 'an unacceptable breach of public trust' and announced its immediate removal. 'Victorians deserve honesty about where their money goes. This secret tax on commuters ends today,' Carroll said. Existing fare structures will revert to pre-levy levels, though the government has flagged potential alternative funding mechanisms for public transport.
The previous administration, which lost office last year, has not commented on the auditor-general's findings. However, transport policy analysts note that the levy was likely intended to shore up budget shortfalls amid rising operational costs. Transport Workers Union secretary Michael McNess welcomed the scrapping, saying commuters and transport workers had been 'unfairly burdened'.
Opposition spokesperson for transport, Jane Barton, criticised the secrecy but questioned the rush to scrap it without a replacement. 'Removing $8 billion from transport revenue without a clear plan risks service cuts or fare hikes elsewhere,' she said. The state budget remains under pressure from infrastructure spending and COVID-era debt.
The auditor-general has flagged further investigations into undisclosed revenue measures across government agencies. Public transport advocacy groups have called for a full review of fare-setting processes to prevent similar hidden charges.