NSW Labor promises $60 weekly tolls cap, in major election policy

Australia’s most tolled state could have their toll costs capped at a set amount, in a drastic cost-of-living measure put forward.

NSW drivers will be have their weekly toll usage capped at $60 if Labor wins the state election on March 25.

Labor Opposition Leader, Chris Minns released the key election policy on Sunday and estimated it would benefit 51,000 drivers every week.

The proposed toll cap is an extension of the 40 per cent toll rebate recently introduced by the government, for motorists who spend more than $375 on tolls during the 2022-23 financial year. NSW Labor would also continue the M5 cashback as well.

However, with a maximum rebate amount of $750, the benefits run out after drivers hit a toll spend of $1875. Under Labor’s proposed plan, the maximum annual spend on tolls would be $3120, with refunds issued each quarter.

Sydney drivers face the most toll roads out of the entire country. Picture: NCA NewsWire / Monique Harmer

Mr Minns said that if Labor was elected, the $147m scheme would come into affect from January 1, 2024 for two years.

While the cap only applies to cars and motorcycles (Class A vehicles) Mr Minns flagged on Sunday there would incoming policy promises for truck drivers.

“What we’re announcing today is a short-term relief in a cost-of-living crisis,” he said on Sunday.

“Our targeted compensation packages those that use tolls regularly.

“I’m particularly concerned for rapidly growing communities on the western fringe of Sydney in particular, who have to use their car to get to work, who’ve been encouraged to move to those growing suburbs by the NSW governments, and all they’ve been provided with our toll roads.”

Sydney drivers, particularly those from the western suburbs, are notoriously known as the most tolled motorists in the country.

There are 13 toll roads in NSW, which Queensland has three, with two in Victoria.

NSW Labor Leader Chris Minns described the cap as a short-term cost-of-living measure. Picture: NCA NewsWire/ Gaye Gerard

NSW Labor also flagged an overhaul of the state’s toll network, which will be undertaken by the former chairman of the Australian Competition & Consumer Commission (ACCC), Professor Allan Fels.

The overhaul would replace the government’s current review, the release of which have been delayed till after the state election, if the Coalition retains government.

Mr Fels said that while current contracts with toll operators, like Transurban, were binding, there were other reform options like moving freight on toll roads at night, long term concessions and potential competition in toll contracts.

NSW Premier Dominic Perrottet has criticised the plan for only affecting 2 per cent of drivers.

On Sunday, Mr Perrottet said his vision for reform involves a “network tolls model,” which he said would be “cheaper” for motorists across Western Sydney areas.

Originally published as NSW Labor promises $60 weekly tolls cap, in major election policy