Confidential NSW government report reveals plan to introduce distance-based tolls

A confidential New South Wales government document has revealed plans to introduce distance-based tolls for Sydney drivers on suburban roads and motorways.

The Future Transport Strategy report leaked to 9News said "network-wide distance-based pricing should be investigated to reshape travel behaviour".

This means the government is considering charging drivers per kilometre regardless of whether motorists are on a suburban road or a major motorway.

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The proposal would see drivers charged almost three cents for every kilometre on the road, which would be monitored via GPS.

This system is already in place in the United States.

However, the proposal has been condemned by NSW Labor leader Chris Minns who said it would impact Western Sydney families enormously.

"Distance-based tolling means Western Sydney families will pay more," Minns said.

"Their answer to every economic problem is families need to pay more, they are squeezing people just too hard."

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The latest revelation is not popular with NRMA spokesperson Peter Khoury either, who called it a "piecemeal approach".

"Let's take a strategic approach at looking at tax reform," he said.

NSW Premier Dominic Perrottet has already confirmed that distance-based tolls will be slugged to electric car drivers at 2.5 cents per kilometre by 2027.

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Meanwhile, the government has denied plans to introduce a congestion tax, which was also included as a proposal in the report.

"I haven't seen the report but I can assure the public there are no plans and we've ruled it out," Perrottet said today.

"This is ridiculous. There is no congestion tax."

The government said the Future Transport Strategy report is a draft and it is yet to adopt any of the proposals.