NSW Toll Cap Reduced to $50 in 2026-27 Budget
The government will reduce the weekly road toll cap from $60 to $50 for one year as part of cost of living measures announced in the 2026-27 state budget.
Prior to the budget release, the Minns government declared that the threshold for the cap, which allows drivers to claim back expenses after spending $60 per vehicle, will be lowered to $50 for the 12 months starting July 6. This adjustment will save motorists who already claim toll relief $10 weekly. Tolls on several roads managed by private operator Transurban have increased by over 4% on average.
The NSW transport minister, John Graham, stated:
“Almost 950,000 toll account holders have sought and received cash back under the ... $60 toll cap and by reducing the cap to $50 there will be 200,000 more joining them.”
Additionally, the government confirmed that tolling administration fees—charged by post to drivers without a tolling account who use toll roads—will be abolished starting July. This policy follows a commitment made before the March 2023 election and was initially announced last year.
The state’s treasurer, Daniel Mookhey, indicated that this year’s budget will include public transport fare relief. Unlike Victoria, which made fares free amid the fallout from the US and Israel’s war in Iran, NSW did not adopt free fares despite pressure from the opposition. The opposition has also consistently urged the government to fund new metro rail projects.
Mookhey described the budget as focusing on “relief, reform and discipline,” noting that the state’s growth forecast for 2026-27 has declined from 2.5% to 1% due to rising inflation and the global oil shock. Reporters are present inside the budget lockup and will provide further key announcements following the treasurer’s speech at 12:30 pm.
Political Context and Budget Day Overview
Good morning and welcome to our live news blog. I’m Martin Farrer, bringing you the top overnight stories, followed by Krishani Dhanji with the main updates.
It is a busy day in politics. Canberra is approaching its winter recess as Labor works to secure agreements to pass major tax and NDIS reforms through the Senate.
Meanwhile, budget announcements are expected in two major states: Queensland and New South Wales. We will provide comprehensive coverage once the lockups conclude. In the meantime, there are pre-announcements and commitments to review: modest toll relief in Sydney, sometimes referred to as the "Harbour City," and indications of a strong infrastructure focus in Queensland’s budget.
