Levy secretly added to Victorian public transport fares scrapped as Labor admits it ‘did not pass the pub test’

The levy imposed a 1% annual increase on all public transport fares in Victoria on top of existing adjustments for inflation. Photograph: Christopher Hopkins/AAP

The Victorian premier, Ben Carroll, has announced he will abolish a levy secretly slapped on public transport users 18 months ago to help pay for the Suburban Rail Loop, as experts warn it is too late for the state to back out of the costly project.

The existence of the levy was revealed in an auditor general’s report tabled in parliament on Wednesday, which also cast doubt on whether the first stage of the multibillion-dollar project – a 26km stretch of twin tunnels from Cheltenham to Box Hill dubbed SRL East – can be delivered on time or within budget.