The New South Wales government has announced it will make the $60 weekly cap for road tolls in Sydney a permanent fixture, a significant move aimed at providing ongoing cost-of-living relief for drivers.
A Permanent Lifeline for Western Sydney
Premier Chris Minns confirmed the decision, stating the cap was too vital to let expire at the end of 2024 as originally planned. "We want to extend it permanently. We're going to keep it," Minns told 2GB radio. He emphasised that the policy is a "massive cost-of-living relief measure for literally hundreds of thousands of people who live in western Sydney."
The scheme, which began in early 2024, allows drivers to claim rebates from the government after their weekly toll spending on a vehicle exceeds $60, with a maximum claim of $340 per week. Without it, Minns warned, many residents would face "hugely, hugely onerous" full market rates. An independent report from 2024 highlighted the scale of the issue, finding that Sydney drivers spend a staggering $2.5 billion annually on tolls, with western suburbs residents bearing the brunt.
Funding the Cap with Two-Way Tolls
To finance the permanent toll cap, estimated to cost the government around $200 million per year, the state is proposing a controversial return to two-way tolling on state-owned roads. This would include the Sydney Harbour Bridge and Tunnel, as well as the future Western Harbour Tunnel and M6 Motorway.
Premier Minns defended the plan, acknowledging it was "not everybody's cup of tea," but arguing it was the fairest approach. "A lot of the communities that will use the Harbour Bridge have access to public transport," he said. "Many communities in western Sydney and the Central Coast just don't have anything like that."
The government anticipates that the two-way tolling system could be implemented around 2028, aligning with the scheduled completion of the Western Harbour Tunnel. The Harbour Bridge was historically tolled in both directions from its 1932 opening until northbound tolls were removed in 1970.
Ongoing Negotiations and Future Plans
Separately, the NSW government continues its negotiations with tolling giant Transurban to unify all toll roads under the newly created agency, NSW Motorways. Transport Minister John Graham has committed to providing an update on these talks before the end of the year.
The government's original allocation for the toll cap was $561 million over two years, though a notable $100 million in unclaimed rebates lapsed in June. Despite the costs, the Premier reinforced the government's support for the toll road network, stating, "We want people using the toll roads. That's why they were built as an effective option."
