Victorian state budget: Myki credit card tap-ons running 18 months late
An upgrade of the troubled myki system to allow for credit card tap-ons across the transport network will cost an extra $137 million and is running 18 months late.
The new financial hit is among $3.3 billion in major project blowouts that have battered the state budget in the past year — a total increase of about 2 per cent for the projects impacted.
Delays of three months or more have also hit almost a third of projects across the state, as broader construction sector woes continued to hit the Big Build.
The taxpayer pain comes as the Allan Government taps the brakes on its Big Build, which is spread across 518 public sector roads and rail, schools, and hospitals, to create a more 'sustainable infrastructure program'.
Some of the budget blowouts include $838m on the Metro Tunnel announced last year, more than $410m on regional rail upgrades, $53m on the troubled Murray Basin Rail Project, and $40m on the Tarneit railway station in Melbourne's west.
Most of the blowouts are blamed on market forces, with construction costs soaring over recent years.
But the $137m blowout on the myki upgrade was due to a 'program reset', which was forced after contractor Conduent complained of unforeseen costs.
This included being unable to access source code and other technical information from the previous operator.
Budget papers show the full project is not due to finish until the end of 2028, after being due to wrap up halfway through 2027.
Despite this, the government has committed to having credit cards in use for full fare passengers on some modes of transport early next year, after it announced it would do a staged rollout.
The Herald Sun revealed the project had been thrown into turmoil this year when one of the project partners walked away from the job, following a legal dispute over costs.
The budget papers suggest the worst of the material price hikes sparked by Covid-19 and global chaos are behind us, but that risks of skills shortages remain.
After annual infrastructure spending hit an unprecedented $24bn a year, capital investments are set to slow to $16bn a year by 2028-29, under what Treasurer Jaclyn Symes calls a 'commitment to a sustainable infrastructure program'.
An extra $8.1bn in new projects have been jammed into the pipeline this year, however, ensuring job numbers don't dry up overnight.
This includes the previously announced spending on the Sunshine station expansion and untangling of rail lines in the west, which the Allan Government says paves the way to build an Airport Rail Link.
It also includes $1.2bn in schools and education, and $214m on hospitals.
As Victoria's infrastructure spending slows – albeit to a level that is still higher than prior to the Covid-19 crisis – budget papers also show a significant proportion of spending over the next decade will be on the $34.5 billion Suburban Rail Loop East.
The Government now calls the first stage of a 90km orbital rail line 'Australia's biggest housing project' due to plans to build 70,000 new homes around station precincts, including in suburban high rises.
The State hopes to secure $11.5bn from the Commonwealth to help pay for the 26km tunnel between Cheltenham and Box Hill, which will be dug from next year and open to passengers in 2035.
So far, the Albanese Government has provided $2.2bn, but has baulked at further cash injections until issues with a project business case – raised by its advisory body Infrastructure Australia – have been addressed.
State Budget papers take a dig at the Commonwealth for historically underfunding Victorian infrastructure, as a share of population.
This includes this year's federal budget, which provides Victoria a 21.4 per cent share of national rail and road funding despite the state housing 25.8 per cent of the country's population.
'Funding received from the Commonwealth is also often not aligned with project milestones, meaning the State is providing upfront cashflows for jointly funded major projects,' the Budget says.
It says a co-ordinated effort by the Commonwealth and State is needed to better deliver infrastructure in the national interest including 'investment in the city-shaping Suburban Rail Loop, a crucial transport link and Australia's biggest housing project in its most populous city'.
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The Advertiser
3 hours ago
- The Advertiser
Future focus as inflation blare dims but change needed
The man who writes the cheques for Australia's largest state budget can finally focus on the future. Inflation was "blaring" in NSW Treasurer Daniel Mookhey's ears when he was compiling his first two budgets after Labor returned to government in 2023 for the first time in 12 years. "But the challenge in front of the state and the nation is making sure that we are growing our economy fast enough to support a rise in living standards," he tells AAP as he prepares to hand down his third. Mr Mookhey says Tuesday's state budget is about the future of the state's essential services and economic growth. "There's a lot of opportunity and a lot of ambition in NSW and the changes we're making are designed to hold on to what we love ... but also ensure that our kids and our grandkids have the same level of opportunity that we had," he says. While receding inflation and distance from the COVID-19 pandemic's associated spending have allowed the treasurer to cast an eye to the future, issues from the past remain. Framed in Mr Mookhey's parliament office is a newspaper headline relating to the underpayments scandal in the state's workers' compensation scheme he played a role in exposing in opposition. The page is yellowing with age as Mr Mookhey pushes to reform a scheme he is now in charge of, and which he argues is becoming unsustainable due to the rising cost and prevalence of psychological injuries. "It's been a hard case to argue," he says. "This system is failing everybody. It's a system that is fundamentally broken." Changes are simmering on the back burner after a parliamentary inquiry prevented action before the budget. Mr Mookhey hopes reform can create a "prevention culture" that limits psychological injuries from occurring. Outside of the workplace, he has promised some reassurance to people dealing with mental health issues and their loved ones. "They will see more investment in mental health resources in our health system and they will see more investment when it comes to our social interventions," he says. However, public psychiatrists at the pointy end of mental health crises should not expect the budget to deliver a pay rise at the level they have been calling for amid resignations in protest and arbitration in the state's Industrial Relations Commission. The federal distribution of GST to the states also continues to frustrate Mr Mookhey after dashing his hopes of a surplus in 2024. NSW now receives its lowest share of GST since it was introduced - about 85 cents for every dollar raised. "What frustrates me is not so much that we support the other states, it's just the missed opportunities," he says. The distribution needs to change but the tax's bigger proportional hit on the spending power of lower-income Australians means Mr Mookhey does not support raising the rate. "We can do better," he says. "What we need to focus on is just making sure the system is simple, the distribution is fair, the distribution is predictable, but also the distribution is understandable." Another federal issue with implications for state budgets is the rise of the black market for illicit tobacco fuelled by rising excise on dinky-di durries. The market shift is robbing the Commonwealth of expected revenue and creating criminal complications for states. It has already led to increased funding for enforcement within the health budget, but Premier Chris Minns indicated earlier in June a decision would have to be made about the resources devoted to combating illicit tobacco sales. While smoke clouds what the budget might do to address the issue, Mr Mookhey notes it is a source of public anxiety. "It's right and fair that we respond to community concerns about it ... we're going to have to work through what is the right solution." The tax issues are part of what economic researchers at the e61 Institute call a "vertical fiscal imbalance" that characterises the nation. "The states carry many of the spending responsibilities but lack equivalent revenue-raising capacity," chief executive Michael Brennan says, warning state finances are drifting onto an unsustainable path. But NSW will at least bank a cash surplus in Tuesday's budget for the first time since 2021. "Which means we're no longer borrowing money to pay our day-to-day bills as a government," Mr Mookhey says. "That gives us a platform for further progress." Australian Public Policy Institute chief executive Libby Hackett expects the budget will be a step forward, building on previous years. "This will be a structural reform budget: supporting better service delivery, infrastructure alignment and long-term productivity, even in a tight fiscal environment," Professor Hackett tells AAP. "Moreover, this budget presents a real opportunity to advance whole-of-government objectives in cross-cutting areas." Opposition Leader Mark Speakman sees it differently, warning the state is heading for "yet another low-vision, low-value, low-energy budget". "We have had not one visionary pre-budget announcement." The man who writes the cheques for Australia's largest state budget can finally focus on the future. Inflation was "blaring" in NSW Treasurer Daniel Mookhey's ears when he was compiling his first two budgets after Labor returned to government in 2023 for the first time in 12 years. "But the challenge in front of the state and the nation is making sure that we are growing our economy fast enough to support a rise in living standards," he tells AAP as he prepares to hand down his third. Mr Mookhey says Tuesday's state budget is about the future of the state's essential services and economic growth. "There's a lot of opportunity and a lot of ambition in NSW and the changes we're making are designed to hold on to what we love ... but also ensure that our kids and our grandkids have the same level of opportunity that we had," he says. While receding inflation and distance from the COVID-19 pandemic's associated spending have allowed the treasurer to cast an eye to the future, issues from the past remain. Framed in Mr Mookhey's parliament office is a newspaper headline relating to the underpayments scandal in the state's workers' compensation scheme he played a role in exposing in opposition. The page is yellowing with age as Mr Mookhey pushes to reform a scheme he is now in charge of, and which he argues is becoming unsustainable due to the rising cost and prevalence of psychological injuries. "It's been a hard case to argue," he says. "This system is failing everybody. It's a system that is fundamentally broken." Changes are simmering on the back burner after a parliamentary inquiry prevented action before the budget. Mr Mookhey hopes reform can create a "prevention culture" that limits psychological injuries from occurring. Outside of the workplace, he has promised some reassurance to people dealing with mental health issues and their loved ones. "They will see more investment in mental health resources in our health system and they will see more investment when it comes to our social interventions," he says. However, public psychiatrists at the pointy end of mental health crises should not expect the budget to deliver a pay rise at the level they have been calling for amid resignations in protest and arbitration in the state's Industrial Relations Commission. The federal distribution of GST to the states also continues to frustrate Mr Mookhey after dashing his hopes of a surplus in 2024. NSW now receives its lowest share of GST since it was introduced - about 85 cents for every dollar raised. "What frustrates me is not so much that we support the other states, it's just the missed opportunities," he says. The distribution needs to change but the tax's bigger proportional hit on the spending power of lower-income Australians means Mr Mookhey does not support raising the rate. "We can do better," he says. "What we need to focus on is just making sure the system is simple, the distribution is fair, the distribution is predictable, but also the distribution is understandable." Another federal issue with implications for state budgets is the rise of the black market for illicit tobacco fuelled by rising excise on dinky-di durries. The market shift is robbing the Commonwealth of expected revenue and creating criminal complications for states. It has already led to increased funding for enforcement within the health budget, but Premier Chris Minns indicated earlier in June a decision would have to be made about the resources devoted to combating illicit tobacco sales. While smoke clouds what the budget might do to address the issue, Mr Mookhey notes it is a source of public anxiety. "It's right and fair that we respond to community concerns about it ... we're going to have to work through what is the right solution." The tax issues are part of what economic researchers at the e61 Institute call a "vertical fiscal imbalance" that characterises the nation. "The states carry many of the spending responsibilities but lack equivalent revenue-raising capacity," chief executive Michael Brennan says, warning state finances are drifting onto an unsustainable path. But NSW will at least bank a cash surplus in Tuesday's budget for the first time since 2021. "Which means we're no longer borrowing money to pay our day-to-day bills as a government," Mr Mookhey says. "That gives us a platform for further progress." Australian Public Policy Institute chief executive Libby Hackett expects the budget will be a step forward, building on previous years. "This will be a structural reform budget: supporting better service delivery, infrastructure alignment and long-term productivity, even in a tight fiscal environment," Professor Hackett tells AAP. "Moreover, this budget presents a real opportunity to advance whole-of-government objectives in cross-cutting areas." Opposition Leader Mark Speakman sees it differently, warning the state is heading for "yet another low-vision, low-value, low-energy budget". "We have had not one visionary pre-budget announcement." The man who writes the cheques for Australia's largest state budget can finally focus on the future. Inflation was "blaring" in NSW Treasurer Daniel Mookhey's ears when he was compiling his first two budgets after Labor returned to government in 2023 for the first time in 12 years. "But the challenge in front of the state and the nation is making sure that we are growing our economy fast enough to support a rise in living standards," he tells AAP as he prepares to hand down his third. Mr Mookhey says Tuesday's state budget is about the future of the state's essential services and economic growth. "There's a lot of opportunity and a lot of ambition in NSW and the changes we're making are designed to hold on to what we love ... but also ensure that our kids and our grandkids have the same level of opportunity that we had," he says. While receding inflation and distance from the COVID-19 pandemic's associated spending have allowed the treasurer to cast an eye to the future, issues from the past remain. Framed in Mr Mookhey's parliament office is a newspaper headline relating to the underpayments scandal in the state's workers' compensation scheme he played a role in exposing in opposition. The page is yellowing with age as Mr Mookhey pushes to reform a scheme he is now in charge of, and which he argues is becoming unsustainable due to the rising cost and prevalence of psychological injuries. "It's been a hard case to argue," he says. "This system is failing everybody. It's a system that is fundamentally broken." Changes are simmering on the back burner after a parliamentary inquiry prevented action before the budget. Mr Mookhey hopes reform can create a "prevention culture" that limits psychological injuries from occurring. Outside of the workplace, he has promised some reassurance to people dealing with mental health issues and their loved ones. "They will see more investment in mental health resources in our health system and they will see more investment when it comes to our social interventions," he says. However, public psychiatrists at the pointy end of mental health crises should not expect the budget to deliver a pay rise at the level they have been calling for amid resignations in protest and arbitration in the state's Industrial Relations Commission. The federal distribution of GST to the states also continues to frustrate Mr Mookhey after dashing his hopes of a surplus in 2024. NSW now receives its lowest share of GST since it was introduced - about 85 cents for every dollar raised. "What frustrates me is not so much that we support the other states, it's just the missed opportunities," he says. The distribution needs to change but the tax's bigger proportional hit on the spending power of lower-income Australians means Mr Mookhey does not support raising the rate. "We can do better," he says. "What we need to focus on is just making sure the system is simple, the distribution is fair, the distribution is predictable, but also the distribution is understandable." Another federal issue with implications for state budgets is the rise of the black market for illicit tobacco fuelled by rising excise on dinky-di durries. The market shift is robbing the Commonwealth of expected revenue and creating criminal complications for states. It has already led to increased funding for enforcement within the health budget, but Premier Chris Minns indicated earlier in June a decision would have to be made about the resources devoted to combating illicit tobacco sales. While smoke clouds what the budget might do to address the issue, Mr Mookhey notes it is a source of public anxiety. "It's right and fair that we respond to community concerns about it ... we're going to have to work through what is the right solution." The tax issues are part of what economic researchers at the e61 Institute call a "vertical fiscal imbalance" that characterises the nation. "The states carry many of the spending responsibilities but lack equivalent revenue-raising capacity," chief executive Michael Brennan says, warning state finances are drifting onto an unsustainable path. But NSW will at least bank a cash surplus in Tuesday's budget for the first time since 2021. "Which means we're no longer borrowing money to pay our day-to-day bills as a government," Mr Mookhey says. "That gives us a platform for further progress." Australian Public Policy Institute chief executive Libby Hackett expects the budget will be a step forward, building on previous years. "This will be a structural reform budget: supporting better service delivery, infrastructure alignment and long-term productivity, even in a tight fiscal environment," Professor Hackett tells AAP. "Moreover, this budget presents a real opportunity to advance whole-of-government objectives in cross-cutting areas." Opposition Leader Mark Speakman sees it differently, warning the state is heading for "yet another low-vision, low-value, low-energy budget". "We have had not one visionary pre-budget announcement." The man who writes the cheques for Australia's largest state budget can finally focus on the future. Inflation was "blaring" in NSW Treasurer Daniel Mookhey's ears when he was compiling his first two budgets after Labor returned to government in 2023 for the first time in 12 years. "But the challenge in front of the state and the nation is making sure that we are growing our economy fast enough to support a rise in living standards," he tells AAP as he prepares to hand down his third. Mr Mookhey says Tuesday's state budget is about the future of the state's essential services and economic growth. "There's a lot of opportunity and a lot of ambition in NSW and the changes we're making are designed to hold on to what we love ... but also ensure that our kids and our grandkids have the same level of opportunity that we had," he says. While receding inflation and distance from the COVID-19 pandemic's associated spending have allowed the treasurer to cast an eye to the future, issues from the past remain. Framed in Mr Mookhey's parliament office is a newspaper headline relating to the underpayments scandal in the state's workers' compensation scheme he played a role in exposing in opposition. The page is yellowing with age as Mr Mookhey pushes to reform a scheme he is now in charge of, and which he argues is becoming unsustainable due to the rising cost and prevalence of psychological injuries. "It's been a hard case to argue," he says. "This system is failing everybody. It's a system that is fundamentally broken." Changes are simmering on the back burner after a parliamentary inquiry prevented action before the budget. Mr Mookhey hopes reform can create a "prevention culture" that limits psychological injuries from occurring. Outside of the workplace, he has promised some reassurance to people dealing with mental health issues and their loved ones. "They will see more investment in mental health resources in our health system and they will see more investment when it comes to our social interventions," he says. However, public psychiatrists at the pointy end of mental health crises should not expect the budget to deliver a pay rise at the level they have been calling for amid resignations in protest and arbitration in the state's Industrial Relations Commission. The federal distribution of GST to the states also continues to frustrate Mr Mookhey after dashing his hopes of a surplus in 2024. NSW now receives its lowest share of GST since it was introduced - about 85 cents for every dollar raised. "What frustrates me is not so much that we support the other states, it's just the missed opportunities," he says. The distribution needs to change but the tax's bigger proportional hit on the spending power of lower-income Australians means Mr Mookhey does not support raising the rate. "We can do better," he says. "What we need to focus on is just making sure the system is simple, the distribution is fair, the distribution is predictable, but also the distribution is understandable." Another federal issue with implications for state budgets is the rise of the black market for illicit tobacco fuelled by rising excise on dinky-di durries. The market shift is robbing the Commonwealth of expected revenue and creating criminal complications for states. It has already led to increased funding for enforcement within the health budget, but Premier Chris Minns indicated earlier in June a decision would have to be made about the resources devoted to combating illicit tobacco sales. While smoke clouds what the budget might do to address the issue, Mr Mookhey notes it is a source of public anxiety. "It's right and fair that we respond to community concerns about it ... we're going to have to work through what is the right solution." The tax issues are part of what economic researchers at the e61 Institute call a "vertical fiscal imbalance" that characterises the nation. "The states carry many of the spending responsibilities but lack equivalent revenue-raising capacity," chief executive Michael Brennan says, warning state finances are drifting onto an unsustainable path. But NSW will at least bank a cash surplus in Tuesday's budget for the first time since 2021. "Which means we're no longer borrowing money to pay our day-to-day bills as a government," Mr Mookhey says. "That gives us a platform for further progress." Australian Public Policy Institute chief executive Libby Hackett expects the budget will be a step forward, building on previous years. "This will be a structural reform budget: supporting better service delivery, infrastructure alignment and long-term productivity, even in a tight fiscal environment," Professor Hackett tells AAP. "Moreover, this budget presents a real opportunity to advance whole-of-government objectives in cross-cutting areas." Opposition Leader Mark Speakman sees it differently, warning the state is heading for "yet another low-vision, low-value, low-energy budget". "We have had not one visionary pre-budget announcement."
ABC News
4 hours ago
- ABC News
Thousands of Victorian businesses to receive payroll tax relief next month
Tens of thousands of Victorian businesses are expected to pay less in tax, with payroll tax changes to be introduced next month. The change will see the payroll tax-free threshold rise from $900,000 to $1 million on July 1. Premier Jacinta Allan said it was expected that 28,000 businesses would be paying less, with an additional 6,000 businesses now exempt from the tax altogether. The changes to payroll tax have been earmarked since 2023, with the government raising the threshold first from $750,000 to $900,000 in July last year. The move comes amid forecasts of record high levels of debt, with the premier conceding there would be some recalculations required. "Yes, this does require an adjustment to our budget and our revenue, but this is an investment in business and jobs and growth," Ms Allan said. Payroll tax was projected to form the biggest source of revenue for the government in the 2025/26 financial year. Treasurer Jaclyn Symes said the affected businesses would save up to $14,500 each. "That has obviously been something that we've factored in over the forwards [projections]," Ms Symes said. Along with the changes to payroll tax, the government will also cut red tape in the planning system. On July 1, the government will scrap the requirement for businesses to apply for planning permits for liquor licensing. Business Wodonga chief executive Graham Jenkin said the permanent changes to licensing requirements had been expected for months but it would be great for regional restaurants and cafes. "This is great because Victoria really has more red tape than any other state government in in Australia, so anything that can reduce red tape which is an obstacle to doing business," Mr Jenkin said. "Business owners don't want to be spending all of their time doing reports." But Mr Jenkin said any changes to payroll tax would make no difference to small businesses who were still recovering from COVID. He said a further range of targeted measures needed to be implemented to help those who were running small-to-medium businesses in Victoria. "A lot of very small businesses will of course see no benefit from it," he said. "It could be a subsidy of council rates, [it] could be less of the Victorian emergency services and volunteers fund levy that small businesses will be forced to pay." Mr Jenkin said more training and development workshops in regional areas and more work in mental health for business owners struggling financially were also essential.
Perth Now
8 hours ago
- Perth Now
Future focus as inflation blare dims but change needed
The man who writes the cheques for Australia's largest state budget can finally focus on the future. Inflation was "blaring" in NSW Treasurer Daniel Mookhey's ears when he was compiling his first two budgets after Labor returned to government in 2023 for the first time in 12 years. "But the challenge in front of the state and the nation is making sure that we are growing our economy fast enough to support a rise in living standards," he tells AAP as he prepares to hand down his third. Mr Mookhey says Tuesday's state budget is about the future of the state's essential services and economic growth. "There's a lot of opportunity and a lot of ambition in NSW and the changes we're making are designed to hold on to what we love ... but also ensure that our kids and our grandkids have the same level of opportunity that we had," he says. While receding inflation and distance from the COVID-19 pandemic's associated spending have allowed the treasurer to cast an eye to the future, issues from the past remain. Framed in Mr Mookhey's parliament office is a newspaper headline relating to the underpayments scandal in the state's workers' compensation scheme he played a role in exposing in opposition. The page is yellowing with age as Mr Mookhey pushes to reform a scheme he is now in charge of, and which he argues is becoming unsustainable due to the rising cost and prevalence of psychological injuries. "It's been a hard case to argue," he says. "This system is failing everybody. It's a system that is fundamentally broken." Changes are simmering on the back burner after a parliamentary inquiry prevented action before the budget. Mr Mookhey hopes reform can create a "prevention culture" that limits psychological injuries from occurring. Outside of the workplace, he has promised some reassurance to people dealing with mental health issues and their loved ones. "They will see more investment in mental health resources in our health system and they will see more investment when it comes to our social interventions," he says. However, public psychiatrists at the pointy end of mental health crises should not expect the budget to deliver a pay rise at the level they have been calling for amid resignations in protest and arbitration in the state's Industrial Relations Commission. The federal distribution of GST to the states also continues to frustrate Mr Mookhey after dashing his hopes of a surplus in 2024. NSW now receives its lowest share of GST since it was introduced - about 85 cents for every dollar raised. "What frustrates me is not so much that we support the other states, it's just the missed opportunities," he says. The distribution needs to change but the tax's bigger proportional hit on the spending power of lower-income Australians means Mr Mookhey does not support raising the rate. "We can do better," he says. "What we need to focus on is just making sure the system is simple, the distribution is fair, the distribution is predictable, but also the distribution is understandable." Another federal issue with implications for state budgets is the rise of the black market for illicit tobacco fuelled by rising excise on dinky-di durries. The market shift is robbing the Commonwealth of expected revenue and creating criminal complications for states. It has already led to increased funding for enforcement within the health budget, but Premier Chris Minns indicated earlier in June a decision would have to be made about the resources devoted to combating illicit tobacco sales. While smoke clouds what the budget might do to address the issue, Mr Mookhey notes it is a source of public anxiety. "It's right and fair that we respond to community concerns about it ... we're going to have to work through what is the right solution." The tax issues are part of what economic researchers at the e61 Institute call a "vertical fiscal imbalance" that characterises the nation. "The states carry many of the spending responsibilities but lack equivalent revenue-raising capacity," chief executive Michael Brennan says, warning state finances are drifting onto an unsustainable path. But NSW will at least bank a cash surplus in Tuesday's budget for the first time since 2021. "Which means we're no longer borrowing money to pay our day-to-day bills as a government," Mr Mookhey says. "That gives us a platform for further progress." Australian Public Policy Institute chief executive Libby Hackett expects the budget will be a step forward, building on previous years. "This will be a structural reform budget: supporting better service delivery, infrastructure alignment and long-term productivity, even in a tight fiscal environment," Professor Hackett tells AAP. "Moreover, this budget presents a real opportunity to advance whole-of-government objectives in cross-cutting areas." Opposition Leader Mark Speakman sees it differently, warning the state is heading for "yet another low-vision, low-value, low-energy budget". "We have had not one visionary pre-budget announcement."
