NSW Government Reaches Billion-Dollar Toll Reduction Deal with Transurban

The Government of New South Wales reached a billion-dollar agreement with motorway operator Transurban to reduce tolls on four Sydney motorways, including the M2 and M7. Starting as early as July 2027, tolls on the Lane Cove Tunnel and longer journeys on the M2 will drop by 10%, while the M7 will see a 10% cut on distance-based trip caps by January 2028. Motorcyclists will see tolls progressively halved, though heavy vehicle tolls will increase.

The deal involves nearly $1 billion in taxpayer costs, including $850 million for motorway widening and potential payments of up to $600 million to Transurban. In return, private operators will contribute $75 million over five years toward the existing $50 permanent weekly toll cap. The agreement also includes a 20% toll reduction for the Cross City Tunnel upon the 2028 opening of the Western Harbour Tunnel, which will introduce two-way tolling on the Eastern Distributor and four new tolls across the harbor crossing network.

Opposition members criticized the reforms as insufficient, noting that WestConnex and NorthConnex were excluded from the agreement. Coalition transport spokeswoman Natalie Ward characterized the deal as "all talk and no action," arguing that 60% of drivers will receive no benefit. Premier Chris Minns defended the package as a step toward a fairer network, stating that while the government cannot abolish toll roads, the agreement provides real relief to motorists.