Slugged daily by expensive road tolls? The Australian city that could be in for a shake-up - MASHAHER

Key Points

An independent review of Sydney’s tolls has identified flaws with pricing structures.
It found motorists will pay $195 billion in tolls over next four decades under existing contracts.
The interim report recommends an overhaul of the system, including fairer pricing structures.

Individual motorway tolls could be lower across Sydney but drivers would slugged fees both ways on the Harbour Bridge under a recommended “reset” of the city’s $123 billion toll burden.

The independent NSW Tolling Review interim report, released on Monday, called for a complete restructuring of the city’s network of 13 tollways, which cost drivers $2.5 billion a year.

It raised numerous concerns about how fees have been structured and set.

“Since tolls have been set administratively rather than by competitive market forces, the likelihood that they have not always been set appropriately becomes a real one,” the report says.

The report by former competition watchdog chief Professor Allan Fels and economist David Cousins also found the setting of tolls had been influenced by a need to “cover concessionaire’s (operators) financing costs” instead of managing traffic.

It found toll prices seem higher than necessary, toll roads are being underutilised and are long-term fiscally unsustainable.

Professor Allan Fels has lead a review into NSW tolls, revealing that prices seem higher than necessary. Source: AAP / Bianca de Marchi

“It has also not had a strong regard to principles of efficiency and fairness in setting individual tolls,” the reviewers said.

The agreement signed in 1994 for Transurban’s Hills M2 in northwest Sydney has a specific provision to protect the operator from adverse impacts arising from a competitive public transport development.

Sydney motorists slugged by ‘unfair’ tolls

Sydney motorists are set to be tolled about $123 billion in today’s dollars across the next 37 years, or an estimated $195 billion in nominal terms.

NSW Roads Minister John Graham said the interim report confirmed what millions of motorists had long suspected.

“The toll contracts were designed with guaranteed financial returns to their owners and operators as top of mind before the need for an efficient and affordable network for those who use it,” he said.

“Drivers came last in that equation.”

Premier Chris Minns said the burden was hitting families who could least afford it.

“This isn’t fair,” he said. “It’s putting a huge burden on Sydneysiders trying get to work, drop their kids at school and go about their lives.”

What changes to Sydney’s tolls are being considered?

Although a full report isn’t due until later in 2024, reviewers have recommended a three-phase toll reform program to create a fairer and more efficient system for users.

Suggestions for reform includes establishing a state TollCO that would take back control of the tolls and address unfair pricing structures.

The review is considering a new distance-based approach whereby the “further a user travels on the network the lower the per-kilometre charge becomes”.

They have also recommended a two-way tolling system for tolls along the Sydney Harbour Bridge, Sydney Harbour Tunnel and the Eastern Distributor.

The blueprint for major reform acknowledged the task ahead is difficult and will take time, encouraging feedback from the public ahead of its final report.

Source Agencies