Motorists using several of Sydney’s toll roads will pay less from next year under a new agreement between the NSW Government and private motorway operators, with the package also introducing cheaper motorcycle tolls and changes aimed at simplifying the city’s complex tolling system.

The reforms include the first reductions to toll prices on Sydney’s existing motorway network, following negotiations between the state government and operators including Transurban. However, major roads including WestConnex and NorthConnex are not part of the price cuts.

From 1 July 2027, tolls on the Lane Cove Tunnel will fall by 10 per cent, while drivers making longer trips on the M2 will also receive a 10 per cent discount, covering about 80 per cent of journeys on the motorway. Motorcycle riders will pay half the standard light vehicle toll across the motorway network as the changes are progressively introduced.

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The reforms also include a 10 per cent reduction to the M7 distance cap from January 2028, subject to planned widening works on the motorway. Once the Western Harbour Tunnel opens in 2028, Cross City Tunnel tolls will be reduced by 20 per cent, while the Eastern Distributor will move to two-way tolling with lower charges in each direction than the current northbound-only arrangement. Annual toll increases on the Sydney Harbour Bridge and Harbour Tunnel will also be reduced from four per cent to 3.25 per cent from July 2027.

The agreement also includes changes for heavy vehicles, with truck tolls to be standardised across most of Sydney’s motorway network from July 2027 at 3.15 times the light vehicle toll. The NSW Government said targeted relief schemes for heavy vehicles will also be introduced to encourage freight operators to use motorways instead of local suburban roads, helping reduce congestion and improve safety in residential areas.

The reforms also pave the way for widening sections of the M2 and M7 without extending the existing private concession agreements beyond their current 2051 expiry dates or increasing tolls to fund the work. According to the NSW Government, private motorway operators have agreed to contribute $75 million over five years towards the state’s toll relief program, while NSW Motorways will continue leading longer-term efforts to simplify Sydney’s toll road network.

The agreement builds on existing reforms including the permanent weekly toll cap, the removal of toll notice administration fees, digital toll notifications, the Tollway Ombudsman and the establishment of NSW Motorways to oversee government-owned toll roads.