The NSW Government welcomes the final report of the Independent Toll Review handed down today by Professor Allan Fels and Dr David Cousins.
The report exposes the full impact of toll road privatisation by the former government.
The report highlights Sydney's toll road network is 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 report notes the lack of a unified tolling system has created complexity, inefficiency, inequities and unfairnes, with those in Western Sydney financially impacted the most.
There are a range of recommendations presented to Government by Professor Fels and Dr Cousins for consideration including:
- Tolls should be based on a declining distance basis charged on a per kilometre basis but with the per kilometre rate declining the greater the distance travelled. This would deliver greater fairness to motorists in Western Sydney
- An infrastructure charge should be introduced for parts of toll roads that have been costly to build e.g. ventilated tunnels, Sydney Harbour Bridge
- Two-way tolling on the two current Harbour crossings and the Eastern Distributor, with this additional revenue gained being put into the lowering of tolls on the remainder of the network. This will also ensure a consistent tolling and traffic integration approach when the Western Harbour tunnel opens around 2028
- Decisions on toll setting should be overseen by the Independent Pricing and Regulatory Tribunal (IPART)
The Government notes the final report also provides two distinct "bookend" scenarios that model the impact on motorists' spend when additional toll relief is provided or removed from the system.
The NSW Government will now consider the report and respond in due course.
The Government promised at the election to introduce long-term reform for the world's most tolled city and an end to the Liberals' "toll mania" in Sydney.
The NSW Government is committed to reforming Sydney's toll network to restore fairness, simplicity and transparency to the system and put the interests of motorists above those of private investors.
The Toll Review confirms this will be a complex task but one that the state must embark on as the Government provides essential cost-of-living relief through Labor's $60 toll cap.
Roads Minister John Graham said:
"Toll reform is critical for Sydney and this is a once in a generation chance to address this issue.
"Former governments have had an attitude of set and forget on tolls but the result is now a combined burden of $195 billion to be paid out to 2060 and a city that is more congested, more divided.
"Under these long-term contracts, Sydney is a place in which people make choices about where they work based on the need to avoid paying tolls. The problem grows each year. Over decades, it will become unsustainable.
"We are determined to put motorists first as we push ahead with these challenging reforms.
"I welcome the offer by motorway concessionaires to work with the Government on a new, network approach to tolling. We will also consider legislation consistent with the recommendations in the final report to achieve this important reform."
NSW Treasurer Daniel Mookhey said:
"The NSW Government is committed to relief and reform.
"Relief began with our $60 toll cap. And today's report is the next important step in reforming an unnecessarily complex and costly system.
"Every year motorists are paying $2.5 billion in tolls. Without reform, that burden will continue to land heaviest on those who can least afford it in Western Sydney and other car-reliant areas.
Full final report of the Independent Toll Review: https://www.treasury.nsw.gov.au/toll-review
