The New South Wales government has reached an agreement with private motorway operators that will deliver the first reductions in existing Sydney toll prices.

From 1 July 2027, Lane Cove Tunnel tolls will fall by 10%, while around 80% of journeys on the M2 will receive a 10% discount. The M7 distance cap will be reduced by 10% from January 2028, subject to the motorway widening project proceeding, while Cross City Tunnel tolls will fall by 20% when the Western Harbour Tunnel opens in 2028. Motorcycle tolls will be progressively reduced to half the corresponding light-vehicle rate from July 2027.

Heavy-vehicle tolls will generally be standardised at 3.15 times the light-vehicle rate, except on the Lane Cove Tunnel, alongside two proposed heavy-vehicle toll-relief trials. Private operators will contribute A$75m (US$102m) over five years towards the state’s permanent weekly toll cap. Planned annual increases on the Sydney Harbour Bridge and Tunnel will also be reduced from 4% to 3.25% from July 2027.

The agreement also provides for two-way charging on the Eastern Distributor when the Western Harbour Tunnel opens. Motorists will pay 53% of the current northbound toll in each direction instead of the full charge in one direction. The agreement does not extend any motorway concession beyond the existing 2051 limit.

WestConnex is included in wider administrative reforms but not the price reductions after the government said it could not reach an agreement with its operator that represented satisfactory value for motorists and taxpayers. “We acknowledge these reductions are modest,” said New South Wales transport minister John Graham. “Toll prices have only ever gone up. We are putting them down.”