Sydney toll relief: What drivers will save

At a glance 

• Toll discounts of between 10 and 20 per cent will begin on selected Sydney motorways from July 2027 
• Motorcycle tolls will be halved, while the permanent $60 weekly toll cap is temporarily set at $50 
• Two-way tolling will begin on the Eastern Distributor and harbour crossings when the Western Harbour Tunnel opens 

Sydney drivers will receive modest toll relief on several major motorways from 2027, following an agreement between the NSW Government and private toll-road operators. 

The agreement will cut Lane Cove Tunnel tolls by 10 per cent and provide the same reduction for longer M2 journeys. A conditional 10 per cent reduction will apply to the M7 distance cap, while Cross City Tunnel tolls will fall by 20 per cent when the Western Harbour Tunnel opens. 

Motorcycle tolls will also progressively fall to half the equivalent light-vehicle toll across the network. 

The NRMA has welcomed the relief, along with plans to widen congested sections of the M7 and M2 toll roads, but cautioned that the changes do not necessarily mean motorists will pay less than they do today. 

Existing contractual toll increases will continue between now and when the discounts take effect. In practical terms, the cuts should make future toll charges lower than they otherwise would have been. 

The deal provides no price reduction for WestConnex and introduces tolling in both directions on the Eastern Distributor, Sydney Harbour Bridge and Sydney Harbour Tunnel. 

When will Sydney tolls be reduced? 

The first road-specific price cuts will begin on 1 July 2027, with different starting dates applying across the network. 

From 1 July 2027: 

• Lane Cove Tunnel tolls will be reduced by 10 per cent;
• Longer M2 journeys, accounting for around 80 per cent of trips, will receive a 10 per cent reduction; 
• Motorcycle tolls will progressively fall to half the equivalent light-vehicle toll across all Sydney motorways; 
• The toll escalation rate for the Sydney Harbour Bridge and Sydney Harbour Tunnel will be reduced to 3.25 per cent, rather than the previously planned 4 per cent; 
• Heavy-vehicle tolls will progressively move to 3.15 times the light-vehicle toll across the network, except on the Lane Cove Tunnel. 

Additionally, when the Western Harbour Tunnel opens in 2028, the Cross City Tunnel toll will be reduced by 20 per cent. 

There is, however, a caveat for the M7. Its distance cap could be reduced by 10 per cent from 1 January 2028, but the discount is conditional on the NSW Government approving proposed widening works on the M7 and M2. 

Toll relief will not mean lower spends than current bills 

Because tolls will continue increasing under existing contracts, drivers should not assume the amount charged in 2027 will necessarily be lower than today. 

Instead, the discounts will be applied to the tolls that would otherwise be charged at that time. This means motorists may still pay more in dollar terms, but less than they would have without the agreement. 

The benefit will also depend on when a driver enters and exits a tollway. People making longer trips on the M2 will receive the 10 per cent discount, but shorter journeys, representing around 20 per cent of M2 trips, will not. 

WestConnex is included in the government’s broader toll measures (such as the toll cap) but not the price reductions. The government said it had been unable to reach an agreement with toll-road owners that represented good value for motorists and taxpayers within the required timeframe. 

Permanent weekly toll cap 

The $60 weekly toll cap, which was temporarily lowered to $50 for 12 months from 6 July 2026, has been made permanent. The reduced $50 cap will provide additional relief for eligible motorists before returning to the permanent $60 level. 

Private operators will put $75 million towards the weekly toll-cap scheme over the next five years, averaging $15 million annually.

The M5 Cashback Scheme will also continue, while toll notice administration fees have been removed and digital toll notifications introduced. 

The newly formed NSW Motorways will oversee state-owned motorways and eventually assume responsibility for privately operated roads as their concession periods end.

NRMA welcomes toll relief 

The NRMA welcomes relief for families facing regular toll increases, particularly when combined with the permanent weekly toll-cap scheme. 

While The NRMA is glad to see toll relief for motorists, it believes more should be done to make tolling fairer, including standardised tolling.  

“Standardised tolling would have meant paying the same amount per kilometre no matter where on the network you are, where you live, or how much you earn — so people in South West Sydney would pay the same per kilometre on the M5 or M4 as people in Western Sydney or the North West on the M2,” The NRMA spokesperson Peter Khoury told media.  

“That was our final goal, acknowledging it was always going to be difficult given some of these contracts have been in place for decades.” 

He added that the savings would be calculated against future toll charges rather than current prices. 

“The NRMA’s position has always been, and what our members have always told us, is that they will pay a toll if they get value for money. And value for money means: will this toll get me home to my family quicker?” he said. 

However, The NRMA has also opposed placing tolls on a direction of travel that motorists can currently use without charge. 

Under the agreement, drivers will begin paying to use the Eastern Distributor in either direction once the Western Harbour Tunnel opens in 2028.. Each direction will cost 53 per cent of the northbound toll applying at the time. 

This will reduce the charge for a northbound-only journey but introduce a new toll for southbound motorists. A return journey would total 106 per cent of the northbound toll applying at the time. 

Two-way tolling will also begin on the Sydney Harbour Bridge and Sydney Harbour Tunnel when the Western Harbour Tunnel opens. Net revenue from two-way tolling on the harbour crossings will help fund the permanent weekly toll cap. 

M7 and M2 widening remains conditional 

The deal opens the door to adding lanes along the remaining two-lane stretches of the M7 and M2 between Richmond Road and Windsor Road.

The NRMA has welcomed the proposal, saying the extra capacity will be increasingly important as north-west and western Sydney continue to grow. 

The work would proceed without extending the existing private motorway concession beyond 2051 or imposing a project-specific toll increase. 

However, the project is not yet confirmed. Work cannot proceed until the government completes its assessment of the project and decides whether to fund it. The M7 discount also depends on that approval.

What about changes for trucks? 

Heavy vehicles will progressively move to a toll multiplier of 3.15 times the light-vehicle toll from July 2027, except on the Lane Cove Tunnel. 

Two temporary relief programs are also planned for truck operators. Their design will be settled following consultation with the freight industry, with each trial running for two years.

One of the programs will seek to draw trucks away from Stoney Creek Road, although its eligibility rules and other details are yet to be announced.

The measures are intended to encourage more trucks to use motorways instead of local roads while improving freight efficiency and safety. 

For drivers, the agreement provides some relief on selected routes, but it is not an across-the-board cut. The amount saved will depend on which motorway is used, when the relevant discount starts and whether new two-way tolls offset some or all of the saving.