Car rego price drop announced in NSW state budget

NSW motorists to pay $80-$100 less for vehicle registration and Sydney tolls capped as 2026-2027 budget introduces measures aimed at easing the cost of living.

It will cost $100 less to register a car and $80 less to register a motorcycle from September, one of a number of measures introduced in the state budget to reduce economic pressure on NSW households.

The government also confirmed drivers will pay no more than $50 per week to use Sydney’s toll roads, a reduction on the current $60 cap.

Both measures were announced in the 2026-2027 NSW state budget, handed down by treasurer Daniel Mookhey on June 23. 

Between September 1 and August 31 in 2027, car owners will be charged $100 less on registration renewals and motorcycle owners will get $80 off. The discount will be automatic on all renewal notices.

The government estimates this will be a $435 million saving across 4.4 million vehicles in NSW.

The toll cap, which commences July 1 and remains in place until July 2027, is expected see an additional 200,000 motorists reaching the eligible threshold – meaning more than 1.1 million drivers in NSW could be claiming toll relief.

The NSW government says those who already claim toll relief can expect to receive an additional $520 back over the 12-month period.

Moreover, the government announced it will scrap administration fees – equating to $10 per notice or $60 million over the past year – which will in part be funded by a push towards digital communication with toll account holders.

NRMA spokesperson Peter Khoury welcomed the relief measures, especially given revenue from tolls is expected to increase almost two and a half times over 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.

$60 billion for NSW roads

While roads took a back seat to schools, hospitals and rail in a cautious budget, the NSW government has allocated $8.7 billion in capital expenditure to the state’s roads – an increase on the $7.5 billion set aside the previous financial year.

Transport infrastructure will also receive $60.2 billion over the next four years, which includes capital expenditure in 2026/27 for the following projects:

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

“The NRMA welcomes the $1.2 billion increase in road funding,” said Mr Khoury. “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.”