Myki Card System to Persist Until 2027 as Tap-and-Go Rollout Faces Major Delays
Victoria's public transport users will continue to rely on Myki cards until at least 2027, as the full implementation of tap-and-go technology has been significantly delayed, according to a report from the state's auditor general. The audit reveals that a dispute between the transport department and a US-based contractor has pushed back the project by 18 months, increasing costs by $136.8 million.
Contract Dispute and Schedule Overruns
The Victorian Auditor-General's Office (Vago) found that the Department of Transport and Planning (DTP) and contractor Conduent entered into a six-month standstill in June 2024 over contract terms and rollout schedules. Conduent was awarded a $1.7 billion, 15-year contract in 2023 to upgrade the Myki system to enable contactless payments via debit or credit cards, smartphones, or smartwatches. However, the department had been warned prior to signing that Conduent's delivery timeline was overly optimistic and lacked detail, which ultimately proved unrealistic.
The report states that DTP failed to address these known issues before finalizing the contract, instead deferring critical work, which contributed to subsequent disputes. Additionally, delays were exacerbated by slow handover of source code from the existing Myki system, with conflicts over intellectual property rights further stalling progress.
Revised Timeline and Phased Implementation
According to the audit, the revised program timeline now targets tap-and-go payments for full-fare passengers across Victoria by early 2026 in Phase 2. Concession passengers and all regional areas will gain access by mid-2027 in Phase 3, with the new system becoming fully operational by mid-2028, after which the Myki system can be retired.
- 2025: Phase 1 involves installing about 23,000 new reader devices across the network.
- 2026: Phase 2 launches tap-and-go for full-fare passengers only.
- 2027: Phase 3 extends tap-and-go to concession fares and expands Myki to all regional areas.
- 2028: Phase 4 marks the full launch of the new system.
Upcoming Challenges and Concession Complexities
Vago warned of upcoming challenges that could cause further delays, including a paused secondary contract with HCLTech worth $34 million to develop a system for concession fares with tap-and-go payments. HCLTech indicated that this pause has already materialized into a risk of additional delays, directly impacting Phase 3 timelines. Transport department secretary Jeroen Weimar attributed the pause to policy changes, such as the introduction of free travel for under-18s through the new youth Myki.
Daniel Bowen, a longtime public transport campaigner and former president of the Public Transport Users Association, expressed frustration over Victoria's lag behind other jurisdictions like Sydney, which introduced similar technology in 2017. He noted that applying concessions to contactless systems remains a complex issue, yet cautiously optimistic about Victoria potentially leapfrogging other states if managed properly. Bowen also highlighted the government's cautious approach, recalling the disastrous 2009 transition to Myki and their desire to avoid similar pitfalls.
Current Trials and Future Outlook
Despite setbacks, some commuters have begun testing the new technology, with passengers on the Craigieburn, Upfield, Ballarat, and Seymour lines participating in a trial to ditch Myki cards. The auditor general's report confirms the program is on track with the revised timeline but emphasizes the need to address ongoing challenges to prevent further delays and ensure a smooth transition to modernized public transport ticketing in Victoria.
