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NSW Announces Staged Toll Cuts and $50 Weekly Cap for Sydney Drivers

The Minns government says the deal will lower bills for many drivers through staged toll cuts, a temporary $50 weekly cap partly funded by private owners, with two-way tolling used to raise revenue.

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Signage of Sydney's M2 toll motorway
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Overview

  • The government announced the package on Sunday, August 2, 2026, bringing 10% cuts to the Lane Cove Tunnel and most M2 trips from July 1, 2027 and a lowered M7 distance cap from January 2028 subject to widening.
  • Private toll‑road owners have agreed to contribute $75 million over five years to help fund a temporary $50 weekly cap that the government cut in the budget for 12 months.
  • Two‑way tolling will be introduced on the Sydney Harbour Bridge, Harbour Tunnel and the Eastern Distributor from as early as 2028 to generate revenue for the cap and to shift tolling patterns.
  • Motorcyclists will see tolls halved progressively from July 1 and the Harbour crossings’ annual increases will be reduced to 3.25% from the 4% previously planned from July 1, 2027.
  • The reforms are phased and conditional, exclude WestConnex because of long contracts, and raise questions about traffic growth, short‑term revenue impacts and further commercial detail to be clarified in upcoming operator briefings.