By Tom Rabe and Matt O'Sullivan
The NSW government has flagged the introduction of road user charges to reduce Sydney’s congestion and remove inequities in the tolling system.
A cabinet-endorsed blueprint – released on Monday – outlines major long-term reforms for the state’s transport system including the need for the government to consider new ways to fund the network due to the rise of electric and automated vehicles.
A long-term strategy document outlines major long-term reforms for the state’s transport system.Credit: Nick Moir
Despite the government presiding over a $100 billion infrastructure pipeline, the report warns that NSW can not “build our way out of congestion”, and instead suggested introducing new fees.
“There is an opportunity to reduce congestion and improve travel choices by exploring charges that are clearer, fairer, more efficient and more sustainable,” the report said.
“The development of a road map for long-term reform of user contributions across the road and public transport networks provides an opportunity to explore how we can influence travel behaviour to tailor demand to the capacity of our existing networks.”
Premier Dominic Perrottet said widespread road user charging was a key element of the state’s electric vehicle transition policy, with the new tax set to slowly replace the fuel excise charge as fossil-fuelled vehicles decline over coming years.
“[A road user charge] is clearly the future, and ultimately, you pay a tax today – stamp duties, fuel excise – that’s the position today as we move forward to an EV future,” he said.
“We know with electric vehicles being the future of road transport in Sydney, around the country and around the world that these new systems need to keep up with that choice.”
Despite the report flagging a charge to reduce Sydney traffic, Perrottet was adamant his government had ruled out a congestion tax.
“We don’t have any plans in relation to congestion charging and this has been raised before when elements of the document were released. This is important in terms of setting out the strategy for the future,” he said.
The Herald in May revealed the government was considering a congestion tax for Sydney’s CBD and distance-based road user charges after obtaining a draft of the strategy.
The draft warned that road users “do not pay the true costs” of driving and causing congestion around the city, and floated broader road use charging as a potential remedy.
The government is also undertaking a wide-ranging review of the patchwork of tolls on Sydney motorways, which is expected to be completed by the end of the year.
Opposition transport spokeswoman Jo Haylen said the long-term plan did nothing to fix the problems facing the state’s transport network.
“The government has already given up on managing the train network, but now it’s clear that they’ve also given up on planning for the transport infrastructure needs of the future,” she said.
The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.