Victorian public transport users will continue to rely on Myki cards until 2027 due to significant delays in the rollout of tap-and-go technology, according to a report by the state's auditor general. The Victorian Auditor-General's Office (Vago) revealed that a dispute between the Department of Transport and Planning (DTP) and US-based contractor Conduent has caused an 18-month delay and added $136.8 million to the project's cost.
The Vago report, tabled in parliament on Wednesday, found that the department was warned before signing the $1.7 billion, 15-year contract in 2023 that Conduent's delivery schedule was 'overly optimistic and lacked detail'. Despite this, the contract was signed, leading to disputes and a six-month standstill by June 2024. The report also cited slow handover of source code from the existing Myki system, with intellectual property rights issues further complicating progress.
Under the revised timeline, tap-and-go payments for full-fare passengers are expected by early 2026, with concession passengers and regional areas following by mid-2027. The new system is slated for full operation by mid-2028, before Myki can be retired. However, the auditor warned of 'upcoming challenges', including a paused $34 million contract with HCLTech to develop concession fare integration, which could impact the final phase.
Public transport campaigner Daniel Bowen expressed frustration that Victoria has 'fallen so far behind' other Australian states and global jurisdictions in contactless payments. He noted that the government is being cautious to avoid a repeat of the problematic 2009 Myki rollout. Despite setbacks, a trial began on Monday on the Craigieburn, Upfield, Ballarat and Seymour lines, allowing some passengers to use tap-and-go for the first time.
