Myki-less public transport for all passengers won’t happen until 2027, Victorian auditor reveals
Victoria’s plan to replace Myki cards with tap‑and‑go contactless payments will not be fully operational until 2027, according to the state auditor. An 18‑month dispute with contractor Conduent added $136.8m to the project and pushed the timeline back. The new system is now expected to be available…
Victoria’s long‑promised shift from magnetic‑stripe Myki cards to contactless tap‑and‑go payments has been pushed back, with the state’s auditor general confirming that passengers will still need Myki cards until 2027. The delay, caused by a dispute between the Department of Transport and Planning (DTP) and U.S. contractor Conduent, added $136.8 million to the project and extended the rollout by 18 months.
What Happened?
In 2023, Conduent was awarded a $1.7 billion, 15‑year contract to upgrade Victoria’s Myki system so that riders could pay with debit or credit cards, smartphones, or smartwatches. The contract promised a move to the “21st century” of public transport, echoing Sydney’s 2017 contactless rollout. However, by June 2024 the DTP and Conduent were in a standstill over the contract’s delivery schedule and rollout plan, leading to a six‑month pause in the project.
The auditor general’s report, tabled in parliament on Wednesday, revealed that the DTP had been warned before signing the contract that Conduent’s timeline was overly optimistic and lacked detail. Instead of addressing these concerns, the department deferred the work, which later contributed to the dispute.
Why the Delay Matters
Victoria’s transport system is one of the few in Australia still reliant on magnetic‑stripe technology. The delay means commuters will continue to purchase and top‑up Myki cards for the next few years, while the state lags behind other jurisdictions that have already implemented contactless payments. The cost overrun and extended timeline also raise questions about project management and oversight.
The audit also highlighted a separate issue: the DTP’s slow handover of source code from the existing Myki system. Conduent needed the code to run both the old and new systems during the transition. Disputes over intellectual property rights and the lack of source code caused Conduent to push back milestones in both Phase 1 and Phase 2 by an average of 6.5 months.
Revised Timeline and Future Challenges
According to the revised schedule, tap‑and‑go payments will be available for full‑fare passengers by early 2026 (Phase 2). Concession passengers and all regional areas will gain access by mid‑2027 (Phase 3). The new system is slated to be fully operational by mid‑2028, at which point the Myki system can be retired.
Despite the updated timetable, the auditor warned of potential further delays. The DTP has paused a secondary $34 million contract with HCLTech, which was responsible for enabling concession fares on the new system. HCLTech has expressed that the risk of delay has materialised, as it has not received a date to resume work. The transport secretary, Jeroen Weimar, said the pause was due to policy changes, including the introduction of free travel for under‑18s through the new youth Myki.
Public Reaction and Early Trials
Public transport advocate Daniel Bowen, former president of the Public Transport Users Association, described the delay as “frustrating” and noted that Victoria has fallen behind other Australian states and international jurisdictions in adopting contactless payments. He added that applying concessions to contactless systems remains a complex issue that other states are still working through.
Despite the setbacks, some commuters have already begun testing the new technology. On Monday, passengers on the Craigieburn, Upfield, Ballarat and Seymour lines became the first in the state to ditch their Myki cards as part of a trial.
Overall, the audit report underscores the importance of realistic project planning, clear communication between government and contractors, and the need for robust contingency plans to avoid costly overruns and prolonged disruption for commuters.
What’s Next?
The DTP must now focus on finalising the phased rollout, ensuring the HCLTech contract is re‑activated, and addressing the intellectual property issues that slowed the original schedule. Commuters can expect a gradual transition, with full tap‑and‑go coverage by 2028, but the journey to that point will likely involve further adjustments and stakeholder coordination.
Why it matters
The delay in adopting contactless payments keeps Victorian commuters tied to an outdated system, increasing operational costs and hindering the state’s competitiveness in public transport technology.
Key points
- Myki cards remain required until 2027 due to an 18‑month dispute
- $136.8m added to the project cost
- Conduent’s optimistic timeline was proven unrealistic
- Phase 2 tap‑and‑go rollout set for early 2026, Phase 3 by mid‑2027
- HCLTech contract pause threatens concession fare rollout
- Early trials have begun on select lines
Frequently asked questions
When will tap‑and‑go payments be fully available in Victoria?
Full coverage for all passengers is expected by mid‑2028, with full‑fare passengers gaining access in early 2026 and concession passengers by mid‑2027.
Why was the project delayed?
A dispute over the delivery schedule and source code handover between the Department of Transport and Planning and contractor Conduent caused an 18‑month standstill and added $136.8 million to the cost.
What is the role of HCLTech in the rollout?
HCLTech is responsible for enabling concession fares on the new tap‑and‑go system, but its contract has been paused, potentially delaying Phase 3.
