Background on tolls
Tolls in NSW are a way to charge people for using motorways, based on a "user-pays" system. This means that those who drive on these roads help cover the costs of building and maintaining them.
As well as building infrastructure, tolls help to manage traffic flow as well as how drivers use motorways to minimise delays, congestion, and accidents.
Over time toll arrangements in NSW have mostly been on a case-by-case basis as new toll roads have been set up. While there is a set of ‘NSW Tolling Principles’ that guides the toll setting process, the current systems do not reflect a system-wide approach and include various charging mechanisms including:
- the distance travelled
- the time of day
- the type of vehicle.
The following factors have been raised for consideration as part of this Review:
- optimising the road network to minimise traffic, save travel time and reduce overall operating costs
- cost of living impacts, fairness and equality for the users of NSW toll roads, particularly for regular commuters without convenient public transport options
- confusing differences in how tolls are charged, making it hard for drivers to understand.
Who is leading the toll review
On 12 February 2023 the Labor Party committed to the review of road tolls and toll relief if it was successful at the NSW Election.
Under a Minns Labor Government, Professor Allan Fels AO, former chairman of the Australian Competition and Consumer Commission (ACCC), will lead The Review.
Professor Fels’ review will:
- take over the current Treasury and Transport review of tolls
- work with toll operators to secure a better deal for drivers
- explore long-term reform options, including:
- adding competition in toll contracts
- moving freight on toll roads at night
- the intersection of public transport and toll roads
- the review long-term concessions
- what other regions are doing
- compliance with toll contracts.
Labor will make the review and recommendations public, invite submissions and will consult with the transport sector and the toll paying public.
Professor Fels will act as the independent Chair with Dr Cousins as Deputy Chair. The cross-agency Project Steering Committee, will include members from NSW Treasury, Transport for NSW and the Cabinet Office.
The Review will be open for public submissions, and the final report shared with the public.
Once completed, Cabinet will review the recommendations.
Toll review terms of reference
The review will look at how motorway tolls are set in Sydney and how toll relief affects people. It will consider the best structure and level of tolls for the future, focusing on efficiency, fairness, simplicity, and transparency. The review will also look at past agreements with toll providers and how tolls interact with other types of transport.
It will examine whether tolls should cover the costs of building and maintaining roads, how different users affect road sustainability, and road usage throughout the day. Toll relief measures aim to make tolls affordable, and the review will consider how to target relief fairly and ensure the community benefits, not just toll road owners.
Tolls should be easy to understand, simple to pay, and efficient to collect. The review will also look at how competition and regulation can influence tolls and improve service performance by providers.
Specific activities will include:
- Reviewing the tolling arrangements across NSW to make sure they align with the NSW Government's Toll Review priorities. This will consider the work already done by NSW Treasury and Transport for NSW.
- Consulting with the transport sector and toll paying public. This will include:
- the release of a public discussion paper in Q2 2023
- holding public hearings in early Q3 2023
- gathering feedback from community and industry stakeholders.
- Releasing public papers or reports to inform people of possible toll reform options and next steps.
- Working closely with toll road owners to create a plan for any possible changes to the toll road network.
Contact NSW Treasury
For general or media enquiries, complete our online form or visit our Contact us page.
- Address: 52 Martin Place, Sydney, NSW 2000 (Enter via 127 Phillip Street)
- Post: GPO Box 5469, Sydney, NSW 2001