An interim report on the state’s toll system has determined a lack of competition has resulted in higher than necessary prices for drivers and under-utilised toll roads.
At current rates, tolls are forecast to cost NSW residents $123 billion the next four decades to 2060.
The report’s authors, led by Professor Allan Fels AO and Dr David Cousins AM, are proposing a host of major reforms to tackle the “poorly functioning” road system which they say is inconsistent and inequitable.
The NSW government plans to introduce legislation to “take back control” of the tolls, while taking into the account the contractual rights of toll operators.
It involves a proposal to reset the pricing of toll roads to create a more unified pricing structure, with tolls charged on a decreasing cost per kilometre driven.
The biggest losers will be commuters using the Sydney Harbour Bridge and Tunnel as well as the Eastern distributor.
Under the reforms, motorists will be charged a two-way toll for travelling on these roads, with the additional revenue used to lower the majority of tolls across the system.
Charges levied on motorcyclists and towed recreational vehicles will also be lowered with an aim to reduce congestion on non-tolled roads.
Transurban owns, at least part of, 11 of the states 13 tolled roads.
“There has been a tendency to set modest looking tolls at the outset when public attention is high and to heavily backload them via extended duration and escalation factors,” Professor Fels said.
“Now, we recommend first legislation m to establish a state TollCo That will take back control of tolls, taking into account the contractual rights of total operators to inject greater competition into the market. And in the longer term, address the level of tolls.”
The review into toll roads kicked off in early-2023 and followed election promises by NSW Premier Chris Minns to reform the previous government’s toll system.
A weekly $60 toll cap was introduced by the NSW Government on January 1, with toll fees also reduced on the M5 and M8 travel corridors.
More to come