Long-awaited myki upgrade delayed by another 18 months

The trouble-plagued roll-out of the new myki ticketing system to allow travellers to tap on with bank cards and smartphones has suffered a $136.7 million cost blow-out and is delayed by up to 18 months.

The state government announced in February that train passengers would be able to use the long-awaited upgraded ticket system from 2026, with more than 20,000 new ticket readers to be installed at Melbourne and regional stations over coming months.

The myki replacement program won’t be completed until the end of 2028.Credit: Jason Robins

But state budget papers published Tuesday reveal it will take until the end of 2028 to finish installing the system across the state’s entire public transport network – including on hundreds of trams and public buses.

That reflects a delay of up to a year-and-a-half compared to last year’s budget, which forecast the program to be finished by mid-2027.

And the cost of installing ticket readers, turnstiles and other infrastructure has increased from $543.6 to $680.3 million – a $136.7 million blow out – due to “a program reset” and “finalisation of the design requirements with delivery partners”, the budget shows.

A spokesman for the Allan government said the system would still be switched on early next year at train stations, and the delays were part of “a staged rollout”.

“We want to do this once and do it right,” he said.

Public transport minister Gabrielle Williams said earlier this year the new system was going onto trains first because of commuters’ heavy reliance on heavy rail, with trams and buses to follow.

Passengers who pay with bank cards and devices will only be able to access full-fare adult tickets at first, before the system is expanded to allow for concession tickets and weekly or monthly fares.

The Age revealed in November last year that the state government and Conduent, the US company installing and operating the new system under a $1.8 billion contract, were at loggerheads over unexpected costs and technical issues that threatened to derail the project.

The state will cover part of the additional myki costs with funds from other parts of the transport network, the budget shows, including $30 million in “savings” and $15 million in funds “reprioritised” from programs to deliver new trains on the V/Line network.

Passengers have been able to travel with bank cards or smartphones equipped with tap-and-go payments on Sydney’s public transport network since 2017, and in Brisbane and Adelaide since 2022. Conduent’s ticket technology was tried on a handful number of buses in Wangaratta last year.

Android phone users can currently pay for public transport using their phones but only through a downloadable myki card, rather than with their bank card.

Elsewhere in the budget, accessible raised tram stops will be built along Droop Street, Footscray, as part of a $98 million program preparing for the roll-out of the new the Next Generation Trams.

The budget also commits $162 million to delivering new or improved bus services to outer-suburban growth areas including Mount Atkinson, Thornhill Park, Kings Leigh, the Mystique estate and West Tarneit.

The Upfield, Craigieburn, Sandringham and Werribee train lines – which have some of the least train services in Melbourne – will also receive improved frequencies in a plan worth $46 million over the next three years.

Public Transport Users Association spokesman Daniel Bowen said that after a decade building new infrastructure, it was “really good to see that focus shift to more frequent bus and train services”.

However, Bowen said passengers would be inconvenienced by swapping between payment methods if there was a significant delay rolling out the new myki on trams and buses after trains.

“A disjointed ticketing system is the last thing passengers need,” he said.

A centrepiece of the budget is the previously announced $318 million plan to give under-18s free public transport statewide from the start of next year.

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