The interim report submitted as part of the Independent Toll Review by Prof Allan Fels and Dr David Cousins has called for major reforms to the existing toll network to enable a fairer system for motorists.

The NSW Government had commissioned the Toll Review to identify reform options to overhaul the toll network, and had tasked Prof Fels and Dr Cousins to independently assess the efficiency, fairness, simplicity and transparency of tolls.

The interim report exposes the damage wrought by toll road privatisation, and describes Sydney’s toll road network as a “poorly-functioning patchwork of numerous different price structures that will cost motorists $195 billion in nominal terms in tolls over the next three and a half decades”.

“Privatisation has left Sydney with a patchwork of toll concessions that make our toll road network neither simple nor fair,” the report revealed.

The high toll prices in NSW discourage the efficient use of toll roads. Toll prices are locked in for decades with a system designed to financially benefit toll road operators rather than managing traffic in the most efficient way. Sydney’s vast road toll network comprises of 13 different toll roads and ten individual contracts, making reforms a challenging task.

An important recommendation presented by Professor Fels and Dr Cousins is a unified, network-wide price structure that is charged on a declining distance-based method, which means motorists who drive longer distances on toll roads will pay less. This is expected to mainly benefit the millions of motorists in western Sydney who currently carry the largest burden and have the fewest public transport alternatives.

Key recommendations also include creating a state-owned special purpose entity to set toll prices and improve competition; legislative changes to allow toll prices to be set independently of individual contracts; and engaging the Independent Pricing and Regulatory Tribunal (IPART) in oversight of toll price setting.

To further encourage efficient freight use of toll roads, the report suggests reduced charges for a new class of light heavy vehicle ‘tradie trucks’, motorcycles and towed recreational vehicles.

“Sydney is the most tolled city in the world. And now we know trying to fix it requires a significant reset of the tolling network,” Premier of New South Wales Chris Minns said.

“The toll burden is hitting families who can least afford it most, particularly parts of western Sydney that have fewer public transport alternatives to getting in the car and paying tolls. This isn’t fair. It’s putting a huge burden on Sydneysiders trying to get to work, drop their kids at school and go about their lives.

“We were elected with a mandate to undertake work on toll reform, to make tolls simpler and fairer. It is important to note that this independent report is not government policy, but it does offer ideas, which will inform our roadmap to a clearer, more equitable tolling system,” Premier Minns added.

The findings and recommendations of the interim Toll Review will help the NSW Government begin to consider the different options that are necessary to reform the toll network and provide a simpler, fairer system that no longer penalises western Sydney road users for their postcode.

“Allan Fels and David Cousins have placed in front of the NSW Government some serious options on toll reform. We will take our time to consider these options and come back with a detailed government response,” Minister for Roads John Graham said.

“This government is willing to have the hard conversations and take on the status quo to deliver a fairer, simpler system that puts the motorist back at the centre rather than financial interests of toll road investors.”

Western Sydney Regional Organisation of Councils (WSROC), the peak body representing councils in Greater Western Sydney, has welcomed the findings of the independent review of motorway toll pricing across Sydney.

“WSROC has been advocating for a review of road tolls over many years, urging the government to make toll roads simpler and fairer,” said WSROC president, Councillor Barry Calvert. “This latest report is an opportunity to begin the path of reform to ensure a sustainable and fairer toll system.”

Image: The M4 Motorway at the Cumberland Highway overpass | Source: WSROC