Tolls To Decrease Amid “Modest” Sydney Motorway Reforms

The New South Wales Government has unveiled a “modest” overhaul to Sydney network tolls, promising lower and fairer fees across the city’s motorways. The reforms follow negotiations between the Minns Labour Government and private motorway operators, and will begin rolling out from mid-2027.

Sydney Toll Changes: Lane Cove Tunnel, M4

Under the agreement, tolls on the Lane Cove Tunnel and around 80 per cent of longer trips on the M2 will fall by 10 per cent from 1 July 2027. Additionally, motorcyclists will progressively pay just half the standard light vehicle toll across Sydney’s entire motorway network from the same date.

Sydney Toll Changes: Cross City Tunnel, Eastern Distributor

Other big reforms will coincide with the opening of the Western Harbour Tunnel in 2028 including a 20 per cent toll reduction for motorists using the Cross City Tunnel, and the Eastern Distributor shifting to two-way tolling, whereby drivers will pay 53 per cent of the current one-way toll in each direction.

“Sydney motorists have been paying more and more in tolls for years,” said NSW Premier Chris Minns. “This agreement means a modest reduction in tolls for motorists, builds on the permanent weekly toll cap and is another step towards a fairer toll network.

“The former Liberal-National Government sold Sydney’s motorways and locked motorists into decades of complex private contracts. We can’t undo that overnight, but we’re making the system fairer step by step.” 

Other Changes: M7, Heavy Vehicle Charges

Other changes under the agreement include a 10 per cent reduction in the M7 distance cap from January 2028 (subject to the motorway’s widening proceeding), and heavy vehicle charges moving to a standard multiplier of 3.15 times the light vehicle toll on most roads.

“We acknowledge these reductions are modest, these were tough negotiations, made even tougher by the contracts signed when the Liberal government privatised motorway after motorway” said Minister for Transport John Graham. 

“For too long Western Sydney motorists were getting a raw deal, now we’ve levelled the playing field with the price reductions and a toll cap that means regular users won’t spend more than $50 a week on tolls.” 

In addition to the direct deal, the Government has reduced the toll increases slated for July 2027 for the Sydney Harbour Bridge and Sydney Harbour Tunnel from 4% to 3.25%. The announcement comes one year after the Government’s pledge to “putting motorists first”, and builds on earlier measures introduced in the 2026-27 NSW Budget, including a temporary reduction in the weekly toll cap from $60 to $50 and the abolition of toll administration fees.