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Budget reveals Myki project to run overtime again

A footnote in the latest Victorian budget says the Myki smart ticketing rollout will cost an extra $137 million and run 18 months late

While many in the state’s transport industry are set to benefit from the latest budget handed down by the Victorian government this week, the ongoing saga of the Myki update is only going to continue.

There were plenty of positives for the bus sector in Victoria – while there’s still no news if any new buses or coaches can be ordered in the state, an expansion of services around Melbourne’s suburbs and making public transport free for all people under 18 serve to benefit the industry.

However, a footnote in the state government’s budget papers reveal the roll-out of the upgraded Myki ticketing system, which includes the ability to pay via phone or smart watch, is once again delayed.

“The TEI (total expected investment) has increased by $136.735 million due to a program reset and includes savings identified from other rolling stock projects,” the government’s footnote in the budget papers says.

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“The estimated completion date has been revised to quarter 2, 2028-29 due to a program reset and the finalisation of design requirements with delivery partners.”

It’s another cruel blow for the Myki upgrade, which has been plagued with issues since the state government changed the contract to run the ticketing solution to US brand Conduent.

Controversy arose when unsuccessful businesses who tendered for the contract complained about an unfair selection process.

Then, in February, the state government announced train passengers could use their cards or phones to pay for public transport fares from 2026 as Myki readers were set to be replaced with the new technology.

However, this latest note from the government suggests the rollout will take an additional 18 months to occur at an extra $137 million.

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