Improving and reforming the tolling system

The NSW Government has been in direct deal negotiations with private toll road concessionaires to negotiate pricing reforms and network efficiency measures to help make the toll system more transparent and sustainable across the motorway network.

The negotiation process has now been finalised, with a range of toll reform benefits for NSW motorists secured, including an agreement to lower many tolls across the network. 

Outcome

The deal provides additional cost of living relief for motorists, with a range of price reductions across the network and network improvement measures secured. These include:

Price discounts

• 10% reduction on the Lane Cove Tunnel from 1 July 2027.
• 10% reduction on M2 for longer journeys past the Mainline Plaza and on the NCX ramps (80% of trips) from 1 July 2027. 
• 10% reduction in M7 distance cap from 1 January 2028, subject to the M2-M7 Widening decision.
• 20% reduction on the Cross City Tunnel when the Western Harbour Tunnel opens in 2028.
• Motorcycle class multiplier on all motorways progressively from 1 July 2027. 
• Reduction in the toll escalation rate for the Sydney Harbour Bridge and Sydney Harbour Tunnel to 3.25%.

Network reforms

The agreement will also deliver broader changes across Sydney’s motorway network:

• Private toll road owners will contribute $75 million over five years recognising that toll relief is expected to increase the number of motorists using the motorway network.
• Under a new harmonised price structure, heavy vehicles will pay 3.15 times the light vehicle toll across the network (except on the Lane Cove Tunnel) progressively from 1 July 2027. 
• Motorcycle riders using toll roads will pay a reduced 0.5 times the light vehicle toll, representing the lower impact these vehicles have on road assets. 
• The Eastern Distributor will be tolled both directions when Western Harbour Tunnel opens in 2028. Rather than paying the full toll in one direction, motorists will pay a lower toll each way. The price will be set at 53% of the northbound toll. This completes the adoption of two way tolling on all toll roads, improving consistency, equity and unnecessary network diversions.
• The agreement also includes a pathway to widen the remaining two-lane sections of the M7 and M2 between Richmond Road and Windsor Road) without extending the existing private concession beyond 2051. 

This is in addition to the first stages of toll reform being implemented by the NSW Government, including:

• the creation of NSW Motorways to lead reform of the tolled motorway network on behalf of government  
• the creation of the NSW Tollway Ombudsman Scheme 
• a funding source, enabling the $60 weekly toll cap to become permanent and lowering of the toll cap to $50 per week for 12 months  
• the removal of administration fees associated with toll notices.

Find out more about the Direct Deal.

Two-way tolling will start on the Sydney Harbour Bridge and Tunnel when the Western Harbour Tunnel opens in 2028. This new tunnel will have tolls in both directions.

What this change means

• It will make the network more consistent by aligning harbour crossings with two-way tolling on other motorways.
• It addresses long-standing differences in how motorists are charged. This includes motorists in Western Sydney, who experience higher and more frequent tolling.

Outcome

• Net revenue from two-way tolling will help support the weekly toll cap. This will create a fairer and more sustainable system for all motorists.

The permanent $60 a week toll cap is delivering targeted cost-of-living relief. More than $300 million has been saved by motorists since the cap was introduced in January 2024.

Current relief available

• A one-year reduction in the toll cap to $50 from 6 July 2026 will provide further relief.
• An additional 200,000 toll accounts are expected to become eligible for relief under the lower cap.

Outcome

• The cap helps motorists who use tolls the most, especially where public transport is limited.
• It helps reduce transport disadvantage and improve equity across the network.

To get the discount

• Link your toll account to your MyServiceNSW account
• Make a claim if you’re eligible.

In addition to the weekly toll cap, motorists can get extra rebates to lower their toll costs even more.

Current relief available

• If you tow a caravan or large RV, you might qualify for the Large Towed Recreational Vehicle Toll Rebate. This rebate helps lower the cost of long trips.
• If you often use the M5 South-West Motorway, you may be able to claim cashback on your tolls. Check out the M5 South-West Cashback Scheme.

Outcome

• Additional rebates help eligible motorists further reduce their toll costs.

The hardship policy has been improved to offer a more consistent and customer-focused approach across NSW toll roads.

What has changed

• Earlier awareness and access to support.
• Clearer and expanded eligibility.
• More flexible assistance tailored to individual circumstances.

Who is eligible

• The policy helps people facing financial, personal, or social challenges that make it hard for them to pay tolls.
• It offers flexible support options tailored to individual needs.

Outcome

• The hardship policy is the same for E-Toll and Linkt. This gives customers a consistent way to get support, no matter which tolling provider they use.

If you're experiencing hardship, visit the E-Toll or Linkt website to find out more.

A Customer Advocate represents motorists, industry and the community. This ensures the tolling system is increasingly shaped around customer needs.

Pauline Gatomé was appointed to this role in January 2026. She provides a dedicated and independent voice for NSW toll road users.

The NSW Tollway Ombudsman was established in January 2026. It is Australia’s first independent ombudsman focused on tolling.

The Ombudsman provides free, independent support to customers with unresolved complaints. This strengthens accountability across toll road operators and toll service providers.

Access free and impartial support for unresolved complaints at www.nswtollwayombudsman.com.au.

Motorists now receive digital reminders within days of travel when a toll remains unpaid. This allows it to be resolved before a toll notice is issued to avoid additional paperwork.

From July, reforms will improve the unpaid toll process with increased digital communications.

The Truck Multiplier Rebate helps the freight industry by lowering toll costs on the M5 East and M8. 

Extending the scheme will support heavy vehicle operators. It will also help keep essential services running by lowering toll costs on key routes.