2026: A Year of Mixed Fortunes for Victorians
The new year brings a mix of good news and challenges for Victorians, with a range of changes affecting public transport, parking, and more. While some measures aim to improve accessibility and safety, others will impact the daily lives of residents, potentially causing financial strain.
Free Public Transport for Youth and Seniors
One of the most notable changes is the introduction of free public transport for Victorian children under 18 with a youth myki card, saving families up to $755 annually. Additionally, Victorian seniors cardholders will enjoy free weekend travel across the state from Thursday, enhancing accessibility for older residents.
Increased Fares and Tolls
However, these benefits come with a trade-off. Daily public transport fares will rise by 40 cents, reaching $11.40 for full-fare travelers and $5.70 for concession cardholders. Weekend and public holiday fares will increase to $8 and $4, respectively. For frequent commuters, this translates to an additional annual cost of over $100.
Tolls will also see an increase, with the CityLink toll for a single car trip rising from $12.25 to $12.38, and the West Gate Tunnel toll point increasing by 4 cents to $4.13. The morning peak-hour charge will jump to $6.61, making weekday city entries more expensive.
Congestion Levy and Parking Changes
The congestion levy on car parking spaces in Melbourne's CBD and surrounding suburbs will surge by over 70% from January 1, 2026. This levy, charged to car park owners, will be passed on to commuters, with annual charges reaching $3030 per space in category 1 areas (mostly the CBD) and $2150 in category 2 areas (including inner-city suburbs).
Vacant Residential Land Tax and Taxi Fines
The vacant residential land tax will expand to include empty land in metropolitan Melbourne that has been undeveloped for five consecutive years or more. The tax rates vary based on the duration of emptiness, with 1%, 2%, and 3% charges for the first, second, and third consecutive years, respectively.
Penalties for taxi drivers who fail to use meters or keep them running after trips will increase from $508.77 to $814.04, with the maximum court penalty rising from 10 to 20 penalty units.
New Laws and Reforms
Several new laws and reforms will come into effect in 2026, aiming to enhance public safety and accountability.
From February 1, Victoria's tobacco licensing scheme will enforce the sale of tobacco products with a valid license, making it an offense to sell without one. From March, repeat offenders will face stricter bail tests, and new anti-hate laws will allow Victorians to take civil action against public abuse or online trolling that a 'reasonable person' finds hateful or humiliating.
These reforms will also make it easier to penalize those who incite serious hatred against individuals based on their identity, gender, or disability on public platforms.
In summary, while 2026 brings some positive changes, Victorians must navigate increased costs and new regulations, highlighting the need for careful financial planning and awareness of these upcoming adjustments.
