Sydney motorists are on the hook to pay a minimum $123 billion in tolls by 2060, new modelling by NSW Treasury and Transport for NSW has established.
Sydney motorists are on the hook to pay a minimum $123 billion in tolls by 2060, new modelling by NSW Treasury and Transport for NSW has established.
Fulfilling a Labor election commitment, the Minns Labor Government is telling drivers for the first time what the total toll burden will be over the coming four decades before existing contracts expire.
The toll bill includes revenues to privatised toll road concessions, including the entire WestConnex system, NorthConnex, the Eastern Distributor, M2 and M7 but also the NSW Government-owned Sydney Harbour Bridge and Tunnel, as well as the future M6 Stage 1.
The toll bill from WestConnex alone, is $64 billion out to 2060.
The disclosure will inform the public conversation about the privatised Sydney toll road network and the long tail of costs to motorists structured to rise quarterly or annually.
The government has introduced a $60 weekly toll cap to begin on 1 January to ease the cost of living impacts of tolls on an estimated 720,000 drivers who pay the most.
The Allan Fels-led independent Tolling Review is also tasked with advising the NSW Government how to bring more equity to the system, particularly for people in Western Sydney who have fewer public transport options and cannot avoid higher weekly toll bills.
Treasury has used a most conservative set of assumptions, including a long-term inflation rate of 2.5% and projected population growth in NSW, to create the baseline minimum toll burden.
The figures are the total potential tolls paid by motorists and do not reflect the running costs, maintenance and financing charges borne by operators.
Minister for Roads John Graham said:
“I said before we came to government that toll costs should not be kept hidden. As of today, they are no longer a state secret.
“You can’t even get a mobile phone contract without being told the minimum payment and yet NSW motorists have been signed up to more than $100 billion in toll costs without any disclosure under the former coalition government.
“A 30-year-old driver today will reach retirement age before some existing toll contracts expire, which is why it is critical we let the light shine in here and debate the merits and the long-term costs of how our tolling system is structured.”
Treasurer Daniel Mookhey said:
“The people of NSW deserve to know what they have been signed up to under privatised contracts and especially so when we are talking about multi-decade bills for everyone who drives a vehicle in Sydney.
“By providing this Treasury toll modelling publicly we are making good on our transparency agenda just as we are seeking to let people know what is contained in privatised contracts over ports and electricity networks and generators.”