Motorists will benefit from toll reductions on several Sydney motorways, alongside broader reforms designed to make the toll network more consistent, affordable and easier to navigate.
Toll prices will be lower across large sections of the Sydney motorway network as a result of the Minns Labor Government completing direct deal negotiations with the private toll road owners.
The agreement delivers the first ever toll price reductions on the existing motorway network. While the discounts are modest, they build on a broader set of reforms designed to make Sydney’s toll network simpler, fairer and more consistent.
In addition to lower prices, toll reform has already delivered a permanent toll cap – currently $50 per week, the removal of toll notice administration fees, digital toll notifications, the NSW Tollway Ombudsman and the establishment of NSW Motorways.
This marks a clear break from 12 years of Liberal-National privatisation where road by road, contract by contract, motorists were left with different prices, different rules and different operators.
In contrast, the Minns Labor Government is delivering a long term plan for a fairer, more consistent network that delivers practical cost-of-living relief for motorists.
Price discounts
The direct deal with the private motorway owners will deliver the following discounts:
- 10% reduction on the Lane Cove Tunnel from 1 July 2027.
- 10% reduction on the M2 for longer journeys (80% of trips) from 1 July 2027.
- 10% reduction in the M7 distance cap from 1 January 2028 – subject to the widening decision (see below).
- 20% reduction on the Cross City Tunnel when the Western Harbour Tunnel opens in 2028.
- 50% reduction for motorcyclists on all motorways progressively from 1 July 2027.
In addition to the direct deal, the Government has reduced future toll increases for the Sydney Harbour Bridge and Sydney Harbour Tunnel to 3.25%, lower than the 4% planned by the former Government from 1 July 2027.
A fairer and more consistent network
The agreement will also deliver broader changes across Sydney’s motorway network.
Private operators to contribute to toll relief
As part of the agreement, private toll road owners will contribute $75 million over five years towards the weekly toll cap, recognising the benefits of toll relief for motorists and increased use of the motorway network due to induced demand.
Heavy vehicle and motorcycle reform
Under a new more coordinated 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. This will support the introduction of two new heavy vehicle toll relief schemes which will be piloted for two years after consultation with the heavy vehicle industry.
This reform is part of broader and comprehensive enforcement and support policy, aimed at shifting heavy vehicles off local roads and onto the motorway network, and improving freight efficiency and safety.
It will include a scheme to reduce truck movements along the Stoney Creek Road corridor, which will be announced in the coming months.
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.
Two-way tolling on the Eastern Distributor
The Eastern Distributor will be tolled both directions when the 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 in both directions will be set at 53% of the northbound toll. This completes two-way tolling across all toll roads improving consistency, equity and reducing diversions onto local roads.
Pathway for M7 and M2 widening
The agreement also creates a pathway to widen the remaining two-lane sections of the M7 and the M2 between Richmond Road and Windsor Road, without extending the existing private concession beyond 2051 or increasing tolls.
The project would also deliver a 10% reduction in the M7 distance cap.
The widening of the M7 and M2 is subject to a final business case and investment decision by the Government.
Long term reform
In addition to the price reductions, the Minns Labor Government’s toll reforms make the motorway network fairer overall for the drivers of Western Sydney through the permanent weekly toll cap and continuation of the M5 Cashback Scheme.
To support the long-term sustainability of the permanent weekly toll cap, the Government has already announced two-way tolling on the Harbour crossings. This continues the direction set under the former Liberal-National Government while helping fund ongoing toll relief for the motorists.
The Government has also established NSW Motorways to manage government-owned motorways, future motorways and private toll roads as they return to public ownership when their concessions expire.
These reforms build on the recommendations of the 2024 Independent Toll Review which included reducing the toll burden, commencing direct deal negotiations, removal of administration fees, changing heavy vehicle incentives, reclassifying motorcycles, consistent multipliers, consistent two-way tolling, IPART oversight, the establishment of an independent ombudsman and the establishment of a Government motorways entity.
WestConnex is part of the network reforms, but not the price changes because the government and the toll road owners could not come to an agreement at this time that would have been good value for both motorists and taxpayers in the timeframe required.
Premier of New South Wales Chris Minns said:
“Sydney motorists have been paying more and more in tolls for years. 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.
“We know people in Western Sydney and across Sydney rely on toll roads every day to get to work, school and home. Every dollar saved makes a difference.
“Families are used to hearing about prices going up. Today we’re announcing something that’s going the other way.
“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.”
Deputy Premier and Minister for Western Sydney Prue Car said:
“The Minns Labor Government is focussed on helping working families with the cost of living, and these reforms will provide relief where it is needed most.
“For too long families in Western Sydney have carried the burden of an increasingly complex and costly toll system. These changes build on our permanent weekly toll cap to make the system simpler and fairer.”
Minister for Transport John Graham said:
“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.
“Toll prices have only ever gone up. We are putting them down.
“We’ve fought for these reductions without paying billions in compensation, ripping up contracts or extending the toll road concessions further into the future.
“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.”
Treasurer Daniel Mookhey said:
“This hard-fought deal will see private toll road owners lower prices and contribute to toll relief. Few people believed that was possible.
“We promised to deliver a better outcome for motorists and that’s what this deal achieves.”
Minister for Roads Jenny Aitchison said:
“These reductions will provide cost of living relief by putting money back in the pockets of motorists, while also building on key reforms like the $50 toll cap and the removal of unfair toll notice fees.
“The Minns Labor Government is continuing to make Sydney’s toll network fairer and more affordable for the thousands of people who use it every day.”
Interim Chief Executive of NSW Motorways Camilla Drover said:
“Reaching this agreement is a significant milestone and reflects the willingness of all parties to work through complex issues in the interests of NSW motorists.
“I would like to thank the concessionaires, the entire State team and our advisers for their constructive engagement and collaboration throughout the negotiations.
“This reform strikes an important balance, delivering a better deal for motorists while ensuring value for money for taxpayers and helping to optimise the long-term performance of Sydney’s motorway network and its investment to date.
“These reforms position the network to better meet the needs of customers today while creating a foundation for future improvements across the broader transport system.”
