New South Wales to Implement $60 Toll Cap in January

Traffic is seen at a standstill on the M5 motorway westbound, in Sydney, Australia, on Jan. 5, 2020. (Jenny Evans/Getty Images)

Around three-quarters of New South Wales (NSW) motorists will be able to assess a new toll rebate program from Jan. 1, 2024.

On Sept. 17, the NSW government announced the introduction of a $60 (US$38.6) toll cap at the beginning of 2024 as part of its cost of living measures.

Under the policy, state drivers can claim back any toll expenses above $60 a week from Service NSW, and the rebate will be paid quarterly.

With the program, motorists in Western Sydney can save hundreds of dollars per year.

For instance, toll account owners in Silverwater can receive an average rebate of $475 in 2024, while those in Glendenning can claim back $540.

While the policy provides some cost relief to around 720,000 drivers in the state, it will also cost NSW taxpayers $561 million.

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The NSW government touted the size of the new program, saying it was 14 times larger than what was announced by the Labor party during the state election in March.

“More motorists are going to access the $60 toll cap scheme than originally anticipated, and I am very pleased to say more than 700,000 motorway users are now going to benefit,” NSW Roads Minister John Graham said in a statement.

“Motorists, particularly in western Sydney where access to public transport alternatives have been more limited than in other parts of the city, have been crying out for relief from the ever-rising burden of tolls on the family budget,” he said.

At the same time, the NSW government will extend the rebate program to heavy vehicles using the M5 East and M8 tunnels, providing some relief to the business and industrial communities.

Trucks travelling on these two tunnels can claim back a third of their toll expenses, which is expected to cost the state $54 million over the two-year trial.

This is not the first time the NSW government has introduced a toll rebate program.

Early this year, the previous Perrottet government implemented a toll relief scheme for around 500,000 drivers.

Meanwhile, the state is also conducting an independent review of toll roads to improve the safety, fairness and efficiency of its toll system.

NSW Is One the Most Tolled Jurisdiction in the World

While the NSW government’s new announcement is good news for some state residents, it is not a secret that NSW motorists are among those most heavily hit by toll fees in the world.

A state parliamentary’s tolling review showed that NSW drivers paid over $2 billion in tolls every year and that over a million trips per day in Sydney were tolled.

In addition, it found that there had been major expansions of tolls following the opening of the WestConnex and NorthConnex toll roads, making Sydney one of the most tolled cities in the world.

NSW currently has 13 toll roads compared to six in Queensland and three in Victoria.

Many state residents also complained about high toll fees, with some reported paying up to $5,000 a year on tolls.

There have also been concerns that the privatisation of toll roads in NSW is the main contributor to its high costs.