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Finance
Luke Costin

Review looks to simplify Sydney toll road patchwork

A review of Sydney toll roads will examine a range of options with a view to making them fairer. (Paul Miller/AAP PHOTOS)

Motorists in the world's most tolled city could face a more complex but fairer toll network under a series of proposals up for debate.

The NSW government has flagged it wants to restructure how commuters pay for Sydney's patchwork of 13 toll roads, to make it more equitable and encourage more use of public transport.

Households and businesses fork out about $5.75 million per day to toll road operators, with the hardest hit households in the city's west.

A 2022 toll review prepared by Treasury and shelved by the former government was released on Wednesday, floating the potential for scrapping set fees on each toll road and instead applying a single network-wide charge.

The charge would be based on a complex calculation of flagfall, distance travelled and other factors.

The city could be divided into zones, as Melbourne and Brisbane do with public transport fares, potentially meaning affluent suburbs shoulder more of the tolling burden.

The review also suggested targeting toll relief packages through means testing could provide more equitable relief.

The proposals will be considered in former competition watchdog chief Allan Fels' year-long independent inquiry of Sydney's toll network.

"We're talking about the most tolled city in the world," Roads Minister John Graham on Wednesday.

"None of this will be easy but it is really important.

"It's the moment to have this discussion in Sydney about toll reform."

While Professor Fels' inquiry is set to take public submissions in July, the government has already put a line through two options in the Treasury report.

Mr Graham on Wednesday ruled out adding a charge to the city's handful of freeways to create a more efficient continuous motorway network.

Officials had conceded a CBD toll zone would be practically difficult given the dozens of entry points.

NSW Labor had already ruled out a broad-based, per-kilometre charge before being elected to state government in March.

Given that stance, Prof Fels said he didn't expect to spend much time investigating those methods.

His underlying aim was to produce a system that was fairer, more efficient, simpler and more transparent, he said.

"Each toll (road) was negotiated and determined separately without consideration to the wider system," Prof Fels told reporters.

"So there is scope to bring in one system of pricing across the 13 toll roads."

A quick change could be a night-time discount for heavy vehicles to encourage motorway usage and discourage arterial road usage during off-peak times, Mr Fels said.

The results, however, could be limited by the opening hours of distribution centres and other business-related factors.

Transurban, which operates most of the tollways, has indicated it will co-operate with the inquiry, Mr Graham said.

"Initial discussions were productive but now we're really handing over that negotiation to Professor Fels," the minister said.

Former finance minister Damien Tudehope said the government was "obsessed" with reviews and needed to start outlining its policy.

"Governments are charged with the responsibility of making decisions," he said.

"In circumstances where we have large cost-of-living pressures on families, I and the people of NSW would like to hear their proposals."

Prof Fels' final report is expected in mid-2024.

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