Millions of drivers to benefit from NSW toll cost reductions
Millions of drivers across Sydney will benefit from a toll price drop of up to 20 per cent as the NSW government promises to deliver relief if returned to power at next year’s state election.
Four Sydney motorways will be cheaper from as early as next year after successful negotiations between the state and private toll operator Transurban.
Millions of NSW motorists are set to benefit from cheaper tolls on some roads from next year. Steven Saphore / SMH
A 10 per cent reduction will be applied to the Lane Cove Tunnel and the M2 from July 1, 2027, and the M7 distance cap from January 1, 2028.
The Cross City Tunnel will see tolls reduced by 20 per cent when the Western Harbour Tunnel opens in 2028.
NSW Premier Chris Minns on Monday said toll prices will be reduced for the first time if Labor is re-elected at the state election in March.
“We can’t abolish toll roads. We didn’t go to the last election promising that we would abolish them, but we promised real relief for New South Wales motorists,” he told reporters.
“And this package, painstakingly negotiated with the private owners of Transurban, does just that.”
Transport Minister John Graham admitted the price change was modest and notably excludes the WestConnex.
“That toll agreement was simply too long, too big, too complex to get a good deal for taxpayers and for toll payers,” he said.
“It wasn’t possible to make that a part of the deal. That’s not to say in decades to come that there might be a chance to do that.”
The reductions will cost the state budget $143 million over the next five years.
NSW Premier Chris Minns made the announcement with one eye on next year’s state election. Max Mason-Hubers
The state has also reduced the future toll increase for the Sydney Harbour Bridge and Sydney Harbour Tunnel to 3.25 per cent, down from 4 per cent pencilled in by the previous Coalition government.
As part of the changes, motorcyclists will see tolls progressively halved and heavy vehicle users will pay 3.15 per cent more tolls progressively from July 1, 2027.
The government said higher tolls for trucks will support the introduction of two new heavy vehicle toll relief schemes.
The 2024 Independent Toll Review recommended reducing the toll burden, direct deal negotiations, removal of administration fees, changing heavy vehicle incentives and reclassifying motorbikes.
The state has been working on toll relief since, and has delivered a permanent $50 toll cap for 12 months and the removal of administration fees.
“The grim reality is for NSW motorists is that many of these toll roads shouldn’t have been privatised in the first place, and we shouldn’t have had one company with so much power over so many roads in the NSW motorway system,” Minns said.
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