The NSW Government has announced an in-principle agreement to deliver its toll reform package — here’s what you need to know.
We’ve worked constructively to support the NSW Government to deliver practical improvements and improve the experience of Sydney motorists. The comprehensive package delivers meaningful cost-of-living relief for drivers, especially those in Western Sydney.
What’s changing now?
The toll cap relief scheme has been made permanent and further reduced to $50 per week until 4 July 2027, after which it will revert to $60 per week. Transurban and our partners will contribute to this for the next 5 years.
From July 2026, motorists will see changes to Toll Notices, including:
- switching off Toll Notice Administration Fees in NSW for unpaid toll notices
- sending Unpaid Toll Reminders and Toll Payment Demands (Toll Notices) via email and/or SMS by (where contact details were available)
- sending vehicle owners email or SMS notifications earlier (within 2–4 days of an unpaid trip).
What's proposed to change in the future?
Lower tolls
We’re lowering toll prices across four motorways, beginning with the M2 and Lane Cove Tunnel from 1 July 2027.
Toll caps
There will also be a reduction of the distance required to access the M7 trip toll cap from 2028, subject to approval of M7/M2 widening project.
Lower tolls for motorcycles
A new motorcycle class will be introduced at half the standard car toll and a modest increase in truck tolls.
M2/M7 widening
To improve traffic flow and reduce congestion, 17km of the M7 and M2 is proposed to be widened to three lanes in each direction between Richmond Road and Windsor Road (project funded by the NSW Government, subject to project approval, final agreements being entered into, and any required regulatory approvals and financier consents being obtained).
Two-way tolling
Two-way tolling will be introduced on the Eastern Distributor to support the opening of the Western Harbour Tunnel with each direction to be charged at just 53% of the current one-way toll, subject to the parties finalising agreements and obtaining the necessary approvals and consents, including from regulators and financiers.
Improved consumer protections and consultation
A NSW Tolling Ombudsman was introduced in January 2026 to support motorists with tolling concerns, and greater transparency will be provided through the publication of key business case and financial information. The Government will also be consulting with the heavy vehicle sector on support.
Keep up to date with toll reform on the Supporting toll reform in NSW page.
These reforms are dependent on the parties entering into definitive agreements, and the conditions under those agreements, including financier consents and regulatory approvals being satisfied. Final government and concession holder approvals and the execution of formal transaction documents are expected by the second half of 2026.
