Tolls to be lowered for multiple Sydney motorways but savings 'modest'

Drivers in Sydney will soon see some relief on their toll road expenses, as the state government announced plans to lower tolls on multiple motorways. Starting July 1, 2027, the Lane Cove Tunnel will see a 10% reduction in tolls, with similar cuts for the M2 for motorists traveling longer distances. The M7 will also implement a 10% reduction in its distance cap from January 1, 2028, though this is contingent on the government funding an $850 million widening of both the M2 and M7.

Further reductions are planned for the Cross City Tunnel, with a 20% decrease expected when the Western Harbour Tunnel opens in 2028. In a significant move for motorcycle riders, they will benefit from a progressive 50% reduction on all motorways starting July 1, 2027. NSW Transport Minister John Graham acknowledged that the price reductions are modest but emphasized that tolls have never decreased before and the benefits will be felt for decades.

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They are modest falls, but [tolls have] never gone down before. And the benefits will be felt for decades.

In 2028, the Eastern Distributor will introduce two-way tolling. The toll for each direction will be set at 53% of the current northbound toll, meaning drivers will pay more than the current one-way cost but not double for a return journey. The government also indicated that if they win the next election, the Harbour Bridge and Harbour Tunnel will also have two-way tolling, with future increases capped at 3.25% instead of the planned 4%.

However, the government was unable to negotiate price reductions for WestConnex, one of the city's major toll roads operated by Transurban. Minister Graham described the WestConnex toll agreement as "too long, too big, too complex to get a good deal for taxpayers and for toll payers." The government has opted to maintain the weekly toll cap at $50, as network-wide reductions proved unfeasible. The toll review's recommendations, such as declining distance-based tolling and a fairer pricing structure, were not fully implemented in this plan.

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That toll agreement was simply too long, too big, too complex to get a good deal for taxpayers and for toll payers.