Key facts
- Most Sydney road tolls will continue to rise by at least 4% annually.
- Transurban, which operates 11 of Sydney's toll roads, was accused of blocking government reforms.
- A deal announced by the state government includes limited one-off toll cuts on some routes.
- Major highways like Westconnex and NorthConnex will not see toll reductions.
- The state government will pay Transurban $850 million to widen the M2-M7 tollway and an additional $143 million to settle the deal.
Most of Sydney’s road tolls will continue to increase at least 4% annually, as the state government's efforts to enact sweeping reforms were reportedly blocked by Transurban, the multinational operator of 11 of the city's major toll roads. A deal announced by Premier Chris Minns on Monday will see limited one-off toll cuts on a few routes, while the majority of tollway trips will not experience a reduction.
The state government will pay Transurban $850 million to widen the M2-M7 tollway, a move expected to boost traffic and toll revenue for the company. An additional $143 million will be spent to settle the deal, which was negotiated over two years. Under the agreement, Transurban will reduce some fares by 10% on the Lane Cove Tunnel and the M2 in July 2027, and on the M7 in 2028. The cross-city tunnel toll will see a one-off 20% cut in 2028, and the Eastern Distributor will have its northbound fare reduced while a southbound fare is added.
However, these highways represent less than half of the daily trips on Transurban's Sydney network. Major routes such as the Westconnex highway, which accounts for a significant portion of daily trips, and the NorthConnex, will not receive any toll reductions. Premier Minns stated that the government was unable to negotiate the desired cost reductions with Transurban for these excluded highways, acknowledging that the government had to concede on certain points.
Transurban CEO Michelle Jablko indicated to investors that significant taxpayer expenditure would have been required for a WestConnex toll reduction. Allan Fels, who led the state's 2024 tolling review, called the announced reductions a "good start" but accused Transurban of blocking reforms and prioritizing profits over public interest. Fels noted that Transurban's compensation demands were "excessive" and ruled out public interest reforms, particularly concerning WestConnex. NSW taxpayers already pay Transurban over $100 million annually to cover the government's toll cap, a figure expected to more than double in the coming years as the cap is lowered.