The Minns Labor Government is continuing to deliver on toll reform, introducing legislation into Parliament this week to create a new state-owned tolling entity that will oversee a reformed toll road network.
After the former Liberal government privatised toll road after toll road, Sydney has become the most tolled city on earth.
The NSW Government is committed to reforming the network to restore fairness, simplicity and transparency to the system and put the interests of motorists back above those of private investors.
Sydney’s toll network is a poorly functioning patchwork of different price structures that will cost motorists $195 billion in nominal terms in tolls until 2060, on top of the billions they have already paid.
The NSW Government will introduce amendments to the Transport Administration Act, going to NSW Parliament this week, to enable the creation of NSW Motorways, as well as:
- Create a role for the independent pricing watchdog IPART to monitor toll prices
- Establish a pathway towards a new independent, industry-wide tolling customer ombudsman
The NSW Government is acting in response to the independent Toll Review by Professor Allan Fels and Dr David Cousins that found Sydney’s lack of a unified tolling system has resulted in complexity, inequities and unfairness – with motorists in Western Sydney paying the highest in tolls.
Under contracts as they stand today, a motorist will pay at least $64 one way for a trip from Marsden Park to the CBD in 2060 if the system is not reformed.
While the Minns Labor Government progresses toll reform, we are making sure toll relief gets to the areas it is most needed, with motorists in Western Sydney suburbs like Blacktown, Baulkham Hills and Auburn collectively claiming more than $1 million in toll relief for each suburb so far under the $60 weekly toll cap.
NSW Motorways
NSW Motorways will be tasked with driving toll reform in conjunction the owners of the city’s private motorways.
The new entity will own and operate tollways not subject to private concession arrangements like the Sydney Harbour Bridge and Tunnel and the Western Harbour Tunnel and M6 Stage 1 when they are complete.
NSW Motorways would oversee any future revenue adjustment mechanism to protect private toll concessionaires from losses from a single, network toll – but also ensure any windfall gains that stem from toll reform go to the NSW public, rather than private operators.
The legislation going to Parliament does not override private contracts of concessionaires and a negotiated outcome through the direct deal process remains the Government’s preference.
The entity would take over the collection of all tolls and absorb the retail business and toll notice functions of E-Toll.
Independent Ombudsman
The Fels Toll Review highlighted that a key frustration for toll road customers is a lack of a clear, external dispute resolution body to resolve tolling complaints.
An independent Tolling Customer Ombudsman will be established to deal with disputes and complaints between customers and operators of toll roads, and all operators in NSW would be bound by a decision of the Ombudsman.
Independent Pricing
The new legislation will also empower IPART to monitor toll prices, investigate specific tolling issues and make recommendations on tolls.
In parallel to enabling legislation that will be introduced this week, the NSW Government is progressing negotiations with toll road concessionaires over toll reform and a better deal for Sydney motorists into the decades ahead.
Toll reform is a complex task but one the state must embark on as the Government provides essential cost-of-living relief through Labor’s $60 toll cap.
Full final report of the Independent Toll Review:
Roads Minister John Graham said:
“Today is an important step to creating a fairer toll road network in Sydney. We are taking back control of toll prices.
“We will transform the system into one that is works better for those who use it, particularly motorists in Western Sydney who have little other choice than to spend big on tolls.
“We said we would waste no time in legislating towards the aim of a network-wide toll system, and that is exactly what we are doing today.
“These amendments will also enable oversight by the independent pricing watchdog, IPART, and improve how complaints and disputes are handled with the creation of a truly independent tolling Ombudsman. We need an Ombudsman that is visible, accessible and will be of help when people are under cost and debt pressure.”
NSW Treasurer Daniel Mookhey said:
“The NSW Government is committed to relief and reform, and this is a first, critical step to establish trust and equity in the toll road sector.
“While we continue to work through the recommendations of the Toll Review, establishing this legislative framework for the creation of NSW Motorways was also critical, as was a pathway to an independent Ombudsman and bringing IPART to the table on tolling.
“We aren’t spinning our wheels on tolling, we are acting on the changes needed. I want to thank the toll road concessionaires for their continued collaboration on these important issues.”
