Aurizon Gets QCA Backing on Rail Access Deal but Approval Still Awaits Revisions

The QCA's Final Decision on the Aurizon UT5+ Access Undertaking backs the core of the ten-year proposal and sets out a pathway to approval, but the regulator has not yet signed off.
By Josua Ferreira -
  • The QCA's Final Decision "materially supports UT5+" as a negotiated package, but Aurizon confirms it is not yet an approval in its current form.
  • The decision backs the ten-year term from 1 July 2027 to 30 June 2037, along with the WACC methodology, accelerated depreciation and throughput payments.
  • Aurizon Network will promptly submit a revised draft incorporating the QCA's amendments, which are limited to minor modelling and calculation corrections.
  • No WACC percentage, revenue figure, earnings impact or approval timetable was disclosed in the announcement.
  • The decision builds on FY2026 underlying NPAT growth of 24% to $433m, where the draft decision was cited as supporting the ten-year revenue outlook.
Summarise with AI:

Aurizon welcomes QCA Final Decision on UT5+ as it outlines a pathway to approval

Aurizon welcomed the Final Decision from the Queensland Competition Authority (QCA) on the 2025 UT5 Draft Amending Access Undertaking (UT5+), received late yesterday (22 October 2026). The announcement was lodged with the ASX on 23 October 2026.

The QCA “materially supports UT5+ as a negotiated package developed with customers” and considers Aurizon Network’s submitted revisions appropriate to approve, subject to correcting minor modelling and calculation changes.

The decision is not yet an approval. According to Aurizon, the QCA has not approved UT5+ in its current form.

For investors, a regulatory outcome that backs the core of the proposal may reduce uncertainty around Aurizon Network’s future access terms.

Aurizon

“…the Final Decision provides a clear pathway to approval.”

Key UT5+ elements supported by the QCA

Aurizon stated that the Final Decision supports the key elements of UT5+. These include:

  • A ten-year term from 1 July 2027 to 30 June 2037
  • The Weighted Average Cost of Capital methodology
  • Accelerated depreciation
  • Throughput payments
  • Inflation and revenue protection mechanisms
  • A range of customer and operational improvements

The table below sets out why each element may matter to investors in general terms.

Element Why it matters to investors
Ten-year term (1 July 2027 to 30 June 2037) A long term provides long-dated regulatory visibility
Weighted Average Cost of Capital methodology Relates to the return methodology applied to the regulated business
Accelerated depreciation Forms part of the framework supported by the regulator
Throughput payments Forms part of the pricing framework supported by the regulator
Inflation and revenue protection mechanisms Relates to protections within the regulated framework
Customer and operational improvements Part of the negotiated package developed with customers

The announcement does not disclose a Weighted Average Cost of Capital percentage, a revenue figure or any earnings impact.

Aurizon’s FY2026 full year results put the regulatory framework in an earnings context, with underlying NPAT rising 24% to $433m and the draft decision cited as a supporting factor for the ten-year revenue outlook.

Understanding access undertakings and why they matter

An access undertaking sets the terms and pricing under which customers access Aurizon Network’s rail infrastructure. The QCA is the Queensland regulator that assesses it.

The regulator’s stance on the framework and return methodology shapes the long-term certainty of the regulated business. That is why the QCA’s support for the Weighted Average Cost of Capital methodology and the ten-year term draws attention.

Aurizon described UT5+ as a negotiated package developed with customers, which points to alignment between the parties on the proposal.

For readers wanting to trace how the regulator arrived at this position, our detailed coverage of the QCA preliminary assessment explains how the operating expenditure allowance was the sole outstanding matter and how the stakeholder submission process unfolded.

Next steps toward securing approval

Aurizon Network intends to promptly submit a revised draft amending access undertaking to the QCA. The revision is to incorporate the amendments identified in the Final Decision, with the aim of securing approval of UT5+.

The sequence runs as follows:

  1. QCA Final Decision received (22 October 2026)
  2. Aurizon Network submits revised draft amending access undertaking (promptly)
  3. QCA approval of UT5+ (the goal; no date disclosed)

The announcement does not disclose a submission or approval timetable.

UT5+ Regulatory Approval Pathway

The takeaway for investors is that the path is defined, with the proposed term beginning 1 July 2027. Approval of UT5+ remains outstanding until the QCA considers the revised draft.

Stay Ahead on Industrials News Before the Market Moves

Join 20,000+ investors getting FREE breaking ASX news from Big News Blast within minutes of release, complete with in-depth analysis. Click the “Free Alerts” button to receive market-moving announcements in your inbox the moment they break, so you are never the last to know.


Frequently Asked Questions

What is an access undertaking?

An access undertaking sets the terms and pricing under which customers access Aurizon Network's rail infrastructure. The Queensland Competition Authority is the regulator that assesses it.

What did the QCA decide on Aurizon's UT5+ proposal?

The QCA's Final Decision, received on 22 October 2026, materially supports UT5+ as a negotiated package and considers Aurizon Network's revisions appropriate to approve, subject to minor modelling and calculation corrections. It has not approved UT5+ in its current form.

What happens next after the QCA Final Decision on UT5+?

Aurizon Network intends to promptly submit a revised draft amending access undertaking incorporating the amendments identified in the Final Decision. No submission or approval timetable has been disclosed.

How long would the UT5+ access undertaking run for?

The proposed term is ten years, from 1 July 2027 to 30 June 2037. The QCA's Final Decision supports this term.

Which elements of UT5+ does the QCA support?

The QCA supports the ten-year term, the Weighted Average Cost of Capital methodology, accelerated depreciation, throughput payments, inflation and revenue protection mechanisms, and a range of customer and operational improvements.

Josua Ferreira
By Josua Ferreira
Partnership Director
Josua Ferreira holds a Bachelor of Commerce in Marketing and Advertising and brings a background in publication, business development, and ASX market storytelling. He has worked with listed companies across the resource sector and broader market, combining sharp commercial instincts with a genuine commitment to keeping investors informed.
Learn More
Companies Mentioned in Article

Breaking ASX Alerts Direct to Your Inbox

Join +20,000 subscribers receiving alerts.

Join thousands of investors who rely on StockWire X for timely, accurate market intelligence.

About the Publisher