Sydney Is The World’s Most Tolled City, But Tolls Could Be Getting Lower

Residents of Sydney, Australia’s most-tolled city, could expect lower tolls in exchange for longer contracts as the NSW government negotiates a fairer pricing system with Transurban, the city’s main toll road operator.

Last year, the NSW government announced that Sydney motorists were set to pay a minimum of $123 billion in tolls by 2060, according to new modelling from NSW Treasury and Transport for NSW.

The tolls covered revenues from a range of private toll road concessions, including the entire WestConnex system, NorthConnex, the Eastern Distributor, M2, and M7, as well as the government-owned Sydney Harbour Bridge and Tunnel, and the future M6 Stage 1.

WestConnex alone accounted for $64 billion through to 2060.

Sydney’s privatised toll road network has been a source of ongoing controversy, with many motorists frustrated by the escalating long-term costs, as tolls are set to increase quarterly or annually.

In response, the government introduced a $60 weekly toll cap, effective from 1 January this year, offering relief to approximately 720,000 drivers who face the highest toll charges.

NSW Govt launches independent review of toll network

In July, the NSW Government established an Independent Toll Review to identify reform options to overhaul the toll network

An independent review led by Professor Allan Fels AO, former Chair of the Australian Competition & Consumer Commission (ACCC), and Dr David Cousins AM, former Chair of the Prices Surveillance Authority and Director of Consumer Affairs Victoria, has put forward several key recommendations for reforming tolling in New South Wales.

The review’s proposals include:

• Shifting from the current tolling system to a more comprehensive network tolling model
• Establishing ‘NSW Motorways,’ to oversee and drive toll reform across the state.
• Enhancing transparency around tolling information for motorists.
• Expanding the role of the Independent Pricing and Regulatory Tribunal (IPART) to provide greater oversight and ensure more transparency in toll price monitoring.

Under existing toll contracts, drivers from Marsden Park to the CBD could face a toll of at least $64 one-way by 2060 unless reforms are introduced.

To address this, the Minns Labor Government has announced a push on toll reform. Under the $60 weekly toll cap, motorists in suburbs like Blacktown, Baulkham Hills, and Auburn have collectively received over $1 million in toll relief so far.

NSW Motorways to lead toll reform 

NSW Motorways will be tasked with driving toll reform in partnership with the private toll road operators. This new body will manage tollways not under private concession agreements, such as the Sydney Harbour Bridge and Tunnel, and future projects like the Western Harbour Tunnel and M6 Stage 1.

They will also oversee the implementation of a new revenue adjustment mechanism, ensuring that any gains from toll reform benefit the public, not private operators. Additionally, the new legislation going to Parliament will empower IPART to monitor toll prices and investigate specific toll issues.

Roads Minister John Graham said, “We will transform the system into one that is works better for those who use it, particularly motorists in Western Sydney who have little other choice than to spend big on tolls.

“These amendments will also enable oversight by the independent pricing watchdog, IPART, and improve how complaints and disputes are handled with the creation of a truly independent tolling Ombudsman. We need an Ombudsman that is visible, accessible and will be of help when people are under cost and debt pressure,” Minister Graham said. 

NSW Treasurer calls reform for tolls a ‘critical step’ 

NSW Treasurer Daniel Mookhey stated that the NSW Government was committed to relief and reform, describing this as a “critical step” to “establish trust and equity in the toll road sector.”

“While we continue to work through the recommendations of the Toll Review, establishing this legislative framework for the creation of NSW Motorways was also critical, as was a pathway to an independent Ombudsman and bringing IPART to the table on tolling,” Mookhey said. 

The government is currently in negotiations with the private toll road operator, Premier Chris Minns confirmed on Tuesday.

“In theory, if extending that contract to 2065 allowed us to significantly reduce tolls for a tradesperson in Penrith today, it’s something I’m open to considering,” Minns said, as reported by The Leader.