The New South Wales government has reached an in-principle agreement with toll-road operator Transurban to restructure the state’s complex tolling system. The deal, announced in early August 2026, aims to provide cost-of-living relief to motorists, particularly those in Western Sydney, by lowering tolls on several key motorways starting in 2027. The agreement also includes a permanent, reduced toll cap of $50 per week for eligible drivers until mid-2027, after which it will return to $60.
Under the new framework, toll prices will be reduced on the M2, M7, Lane Cove Tunnel, and Cross City Tunnel. The plan also introduces a new motorcycle toll class set at half the standard car rate and implements two-way tolling on the Eastern Distributor to support the upcoming Western Harbour Tunnel. To address congestion, the government and Transurban have proposed a project to widen 17 kilometers of the M7 and M2 motorways, with funding provided by the state.
This reform follows a 2024 independent review led by former competition regulator Allan Fels, which criticized the existing patchwork of tolling contracts for being unfair and inefficient. While the government describes the package as a significant step toward a more transparent system, the implementation remains subject to final documentation, regulatory approvals, and consent from financiers.
Transurban has stated that the reforms will not negatively impact its near-term distributions to shareholders. The company emphasized that it worked constructively with the government to balance consumer relief with the protection of long-term investments in Sydney’s road network. The changes also include administrative improvements, such as the removal of toll notice fees and the introduction of earlier digital notifications for unpaid trips.