Tolls cut on Sydney’s motorways following long-running negotiations

Tolls will be cut on four motorways in Sydney including the M7 and M2 from as early as July next year as part of largest shake up of pricing in years.

Less than eight months out from the state election, 10 per cent will be cut from tolls on the Lane Cove Tunnel, while the same reduction will apply to longer journeys on the M2 motorway from July 1 next year.

The cap on distance-based trips on the M7 will be cut by 10 per cent from January 2028, subject to a widening of the motorway.

Tolls on the Cross City Tunnel will be reduced by 20 per cent when the Western Harbour Tunnel opens in 2028.

The price discounts for Sydney’s patchwork of toll roads follow two years of direct negotiations between the Minns government and toll road giant Transurban.

In addition to the direct deal, the government has reduced future toll increases for the Sydney Harbour Bridge and Sydney Harbour Tunnel to 3.25pc, lower than the 4pc planned by the former Government from July 1, 2027.

The government has been negotiating with Transurban and other large investors about a shake-up of tolling contracts since July 2024.

They have already reached a deal to scrap administration charges on toll notices, while the government confirmed late last year that motorists will be charged two-way tolls on the Sydney Harbour Bridge and Harbour Tunnel from as early as 2028 to help fund a weekly cap on motorway charges across the city.

The government recently cut the toll cap to $50 a week from $60 for 12 months as part of cost-of-living measures in the budget.

Transurban, which will release its full-year profits on August 13, will brief analysts on the shake up on Monday morning.

More to come

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