At the same time, Professor Fels and his deputy Dr David Cousins AM have provided the public with a snapshot of where work by Treasury and Transport for NSW was up to upon their appointment. The previous work undertaken was never released in any form by the former Government, despite a promise to do so by the end of 2022.
The snapshot provides a number of reform options, including an entry charge to the CBD – commonly known as a congestion tax in other international cities. Another option is to consider extending the Sydney motorway network by placing tolls on previously untolled roads to create a larger, continuous network. The NSW Government is today ruling out both options, as both are contrary to Labor’s election commitments.
Roads Minister John Graham said neither option fitted the Government’s pledge to end the era of “toll mania” under the previous Coalition government and take financial pressure off households and businesses that have felt the brunt of toll inflation in recent years. The Fels Inquiry will benefit from the considerable and detailed work done by Treasury and Transport and build on that over the coming months into 2024. Options canvassed include network pricing that would involve an access charge and a distance-based charge, with all motorways moving to a common pricing structure. A variant to this is a geographic motorway zone system.
Time of day pricing, with lower off-peak charges, is another option, including providing discounts to heavy vehicles to encourage the movement of freight outside of peak hours. Professor Fels’ discussion paper will help guide public submissions and the review will then lead three days of public hearings in July to hear from members of the public, businesses and industry stakeholders about the impacts of tolls and ideas for reform.
The key focus areas will include:
- The structure and level of tolls for the future, with regard to efficiency, fairness, simplicity and transparency
- The development and structure of concession agreements with providers
- How the tolled network interfaces with all modes of transport
- Dealing with congestion and wider network impacts
- Variations of pricing structures, including time of day, dynamic or real pricing
- Heavy vehicle multipliers and the use of local roads by heavy vehicles
- Greater transparency on price setting (including minimising administration fees)
The discussion paper also considers the scope of competition and regulation across the toll road network, considering competition for the right to deliver the motorway and provide tolled motorway services and if a level playing field exists. The Fels Review will publicly release its final report next year with the government to consider its recommendations. The NSW Government is set to introduce a $60 a week toll cap scheme for household motorists, and a reduction in the truck toll multiplier for heavy vehicles on the M5 East and M8 corridors from the start of next year, for two years.
Minister Graham said:
“Toll mania is a thing of the past which is why I need to be very clear and say the NSW Government will not support any recommendations to place tolls on previously untolled roads and there will be no charge to drive into the Sydney CBD, as we promised in the election.”
“The previous Coalition government did not release the tolling options that were being considered by them but we believe this snapshot of work will help Professor Fels and Dr Cousins as they move to the next stage of their Review and engage the public on creating a simpler and more equitable toll network.”
“Our tolling system is broken. There are fixed charges, distance charges, mixed access and distance-based tolls, amongst other things. This needs to be sorted out and this government is doing exactly that.”
“We want to create fewer distortions and less confusion for motorists which is one of the aspects this toll review looks to achieve.”
“This independent review will prove critical to providing meaningful reform of Sydney’s toll network and provide hip pocket relief for motorists.”
Treasurer Mookhey said:
“We need to find a simpler and more equitable system for the people of NSW, and the previous government’s work did not go far enough.”
“This independent review is crucial to providing meaningful reform of Sydney’s toll network and ensuring some much-needed financial relief for motorists.”
“We are working towards providing financial relief for motorists not only by implementing a $60 weekly cap in the short term but also by finding the best possible solutions for long-term toll reform.”
“We want to make toll roads simpler and fairer for motorists and that’s the main aim of this review.”
Professor Allan Fels AO said:
“I need to acknowledge the extensive work done already done in this space however much more consideration and consultation is needed to create conditions for real reform. It is so important we hear from the public and other key stakeholders and I look forward to speaking with many face-to-face.”
“Our review will look at tolling issues in more detail and focus on those areas which can create a fairer and equitable outcome for all road users.”
"Different tolls have been negotiated at different times under different circumstances and have resulted in an inconsistent jigsaw and this is only one of the issues we want to look at in this review.”
More information:
The Public Discussion paper and the 2022 Summary Report can be found on the Toll Review webpage.
Get more information about NSW tolls including how and when to make a submission.
