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.”
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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:
- QCA Final Decision received (22 October 2026)
- Aurizon Network submits revised draft amending access undertaking (promptly)
- QCA approval of UT5+ (the goal; no date disclosed)
The announcement does not disclose a submission or approval timetable.
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.
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