We looked at 6 agencies in detail to see how they record and report their payment timeliness data. We found that agencies apply and interpret the Policy differently. This makes it difficult to compare agencies’ performance.
Covered in this section:
In 2021, the state amended the Policy. It requires agencies to pay invoices with a contract value up to $3 million in 10 business days.
In 2024–25, agencies reported collectively that they paid 81.5 per cent of invoices on time. On average, it took 10.8 calendar days to pay invoices.
But payment timeliness data collected by DJSIR and published by the VSBC is not checked. We found gaps in the collected data. Agencies also told us, on review, that some of the collected and published data is incorrect.
Covered in this section:
We made 9 recommendations to address our findings. The relevant agencies have accepted 7 recommendations and 2 recommendations in principle.
Our review followed 2 lines of inquiry:
1. Does the government pay its private sector suppliers according to contracted or otherwise agreed payment terms?
2. Is the data agencies provide to the Department of Jobs, Skills, Industry and Regions (DJSIR), and published by the Victorian Small Business Commission (VSBC) about their invoices, timeframes and compliance rates reliable and do entities fairly present performance publicly?
Download a PDF copy of Appendix C: Audit scope and method.
Download a PDF copy of Appendix B: Abbreviations, acronyms and glossary.
Download a PDF copy of Appendix A: Submissions and comments.
DTP ran a comprehensive market research process to help the government understand options for a new ticketing system. Its tendering process also helped to achieve the government's cost and functionality objectives.
But DTP did not follow government guidelines to appoint an independent probity auditor for the project. Independent probity auditors give assurance that a project’s tender process and outcome comply with legal, regulatory and ethical standards.
Covered in this section:
DTP's benefit management plan for the project is not fully developed. It does not demonstrate value for money and uses some anecdotal data to forecast the project’s expected benefits.
The project’s total cost of ownership is estimated at $2.8 billion over 15 years. The cost of fare collection is estimated at 26 cents per dollar collected.
Overall, value for money for this investment is unclear.
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DTP is delivering the project to meet its reset timeline. CVTS is now on track installing new reader devices. These devices are supported by thorough testing.
Future delivery stages will be more complex, including the processes and technology needed to verify concession fares.
DTP is responsible for delivering several parts of the project that are outside of CVTS’s scope. DTP has not started planning in detail for future project phases, so it is unclear how it will deliver this work and manage risks.
Covered in this section: