The NSW Government has taken another step towards creating a fairer toll road system for Sydney, presenting an In Principle Agreement to the motorway concessionaires which provides a pathway to more detailed negotiations in 2025.

The Government expects the In Principle Agreement to be signed off by the end of the year by concessionaires who hold the ten privately-owned toll road concessions of Sydney’s 13 toll roads.

It sets out further areas to discuss and refine as part of the next stage of creating a genuine toll network and a new network-wide pricing structure across the tangle of different private contracts.

The NSW Government has committed to tilting the system back in favour of motorists and ending the era of Liberal Party “Toll-Mania” with a fairer, network-wide pricing structure.

If concessionaires sign the In Principle Agreement, it will allow the process to enter the second stage of the direct dealing towards toll reform and enable negotiation of a new network-wide pricing method.

The NSW Government is committed to respecting the value of the motorway contracts – but is also intent that windfall gains that stem from toll reform go to the NSW public, rather than private operators.

The Minns Labor Government’s $60 toll cap has been an effective, targeted cost-of-living relief measure, with motorists in the most car-reliant suburbs of western Sydney claiming the most cash back.

The Government entered negotiations with the concessionaires after the July 16 release of the final report of the Toll Review of Professor Allan Fels and Dr David Cousins.

Their report declared Sydney’s toll road network to be a poorly functioning patchwork of numerous different price structures that will cost motorists $195 billion in nominal terms in tolls over the next three and a half decades on top of the billions they have already paid.

The Government’s objectives would require the new price structure to:

• Deliver fairer tolls
• Lower tolls for those who must travel longer distances
• Create a network out of the different toll roads with a network-wide pricing structure
• Create a more efficient Sydney road network that takes more trucks off suburban streets

Minister for Roads John Graham said, “The Minns Labor Government is committed to restoring fairness to the toll system and putting the interests of motorists first.

“These have been tough discussions so far, but I am pleased to say we believe we are closely enough aligned on objectives to continue negotiations.

“Creating a fairer system is no easy task given the contracts that were left behind by the previous Coalition government, but we believe reform remains possible.

“We expect to have the In Principle Agreement signed by December 31.

“Toll reform is a critical part of the NSW Government’s cost of living agenda. As we negotiate towards a single network with a network-wide pricing structure, we continue to offer toll relief under the $60 toll cap.

“We have already legislated to establish NSW Motorways, a state-owned entity that will oversee a reformed toll road network and allow the Independent Pricing and Regulatory Tribunal to monitor toll prices in Sydney, as well as facilitating the establishment of an industry toll customer ombudsman.”

Treasurer Daniel Mookhey said, “Negotiations are on track. We’ve put an In Principle Agreement to the concessionaires and look forward to continuing negotiations in the new year.

“We have said all along that this is about relief and reform for drivers. 

“Motorists across Sydney are getting cost of living relief with our $60 toll cap, while we are moving ahead on sensible long-term reform.

“Sydney’s complex and costly web of tolls are another privatisation legacy of the former government. We are working to make this fairer.”