NSW budget: Increased road funding

The NRMA calls for automated toll rebate and backs increased road funding

The NRMA has today welcomed an increased investment in road funding from today’s Budget while also calling on the NSW Government to automate the refund process for its newly announced $50 a week toll cap.

Car travelling down on ramp M5 and M8 motorway

Today’s NSW Budget has seen $8.7 billion allocated in capital expenditure to the state’s roads – an increase on the $7.5 billion allocated in last year. Given over $110 million in toll rebates sits unclaimed, the NRMA is today calling on the NSW Government to introduce a system that allows drivers to automatically receive the rebate in their bank accounts once eligible.

This will remove the need for families to navigate through a multi-step process to access their toll relief in a similar way to the Medicare rebate at a local GP. The NRMA believes older Australians and people who are less tech savvy will particularly benefit.

The Budget includes $869 million in traffic infringement revenue in 2025/26, a $4 million increase on the previous year. Revenue from toll roads will increase almost 240 per cent from $160 million in 2026/27 to $539 million in 2029/30.

The Budget allocates $60.2 billion over the next for years in transport infrastructure. It includes capital expenditure in 2026/27 for the following projects:

$997.8 million on Western Harbour tunnel;
$265.3 million Mamre Road Stage Two;
$207.6 million Coffs Harbour bypass/Pacific Highway;
$200.3 million on the M6 extension Stage One;
$187.4 million Elizabeth Drive upgrades

NRMA spokesperson Peter Khoury said making toll relief easier to access would be crucial – givenn revenue from tolls will increase by almost two-and-a-half times in the next four years.

“Families are struggling to make ends meet and there aren’t enough hours in the day – automating the toll relief system isn’t just a good cost-of-living initiative, it means families have one less thing to worry about,” Mr Khoury said.

“The NRMA also welcomes the $1.2 billion increase in road funding. This was crucial given the disappointment of the Federal Budget and the fact that our road toll is already at 170 this year.

“What is now vital is that we deliver an urgent solution to the Mount Victoria Pass crisis as this is the key road between Sydney and the state’s west. Local communities will continue to suffer until this is done.

“We also need to get cracking on completing the M6 Extension as this is a missing link in Sydney network. This is vital to unlocking economic and tourism opportunities in Sydney’s south, the Illawarra and South Coast.

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