Millions of Sydney commuters to benefit financially under measures announced in NSW Budget

By DUNCAN MURRAY FOR AUSTRALIAN ASSOCIATED PRESS Published: 12:23, 23 June 2026 | Updated: 12:25, 23 June 2026 Sydney drivers will pay less in tolls under further relief measures from the NSW government, but some say promised meaningful reform is yet to be delivered. Road toll relief was extended on Tuesday as Treasurer Daniel Mookhey handed down the NSW state Budget, with weekly tolls capped at $50 for the next year and the scrapping of a controversial administration fee. Opposition Leader Kellie Sloane welcomed the changes, but said motorists were yet to see the systemic reform the government promised prior to the last election. As part of a $561 million transport affordability package, the government will also freeze public transport fares for 12 months, the state budget revealed. Additionally, car registration fees, which in NSW can cost nearly $1000, will be cut by $100 for around 4.4 million vehicles while motorbike registration will be trimmed by $80.  Registering a Toyota Corolla typically costs about $475, but that would be down to $375 after the relief. Registration for a BYD Shark would cost $944 before the discount takes it down to $844. Of the 4.4 million vehicles eligible for the registration discount, about 1.9 million are in rural and regional areas. 'This is how we attack the cost-of-living crisis from every angle ... this is what choosing our own fate looks like,' NSW Treasurer Daniel Mookhey said in his budget address. Many Sydney drivers will pay less in tolls under further relief measures from the NSW government The weekly toll cap has been criticised as a continuation of what was always considered a 'band-aid solution', according to Martin Locke, from the University of Sydney's Institute of Transport and Logistics Studies A 2024 report, co-authored by former corruption watchdog chair Allan Fels, found Sydney motorway tolls were higher than necessary and weekly toll caps were deeply flawed. Former roads minister John Graham said at the time negotiations with private toll-road operator Transurban presented an opportunity to take back control of tolls in NSW. 'That provided some glimmers of hope that there were going to be some policy changes, and the outcome of that has actually been absolutely pathetic,' Adjunct Professor Locke told AAP. Prof Locke said the government had been silent on what, if anything, it had achieved through negotiations with Transurban and branded the latest toll reforms 'fiddling at the edges'. About 1.13 million trips each day are tolled in NSW. The now-scrapped administration fees, which can be around $10 per notice, cost NSW drivers about $60 million in 2025/26 and often cost twice as much as the actual toll. Meanwhile, more than 400,000 people using NSW's public transport system each day will benefit from 2025 fares for another 12 months. The NSW government is trying to offset a fall in one of its biggest property-driven revenue feeds by cutting spending as it heads into a low-growth economy The government will also spend $2.6 million improving its FuelCheck app, which shows drivers the fuel prices at petrol stations across the state.  The NSW government is also trying to offset a fall in the large property-driven revenue feed by cutting spending. The state property market is feeling the pinch of three consecutive central bank interest rate rises with no guarantee there won't be more. Still, Mookhey is confident he can rustle up a budget surplus in 2027/28, after the state election in March. Sydney University's Luke Hartigan thinks the treasurer's surplus forecast is 'ambitious'. 'If the economy starts to slow down a bit, then we should probably see some fall off in GST revenue (for NSW) as well,' the School of Economics academic told AAP. 'So it's ambitious to think we'll have a surplus, considering most of the other states have big deficits and the federal government has a deficit.' If the Reserve Bank continues to raise rates, given ongoing upside risks to inflation, there will be more downward pressure on the housing market and stamp duty revenue. If the Reserve Bank continues to raise rates, given ongoing upside risks to inflation, there will be more downward pressure on the housing market and stamp duty revenue NSW will experience a near $2 billion slump in property transfer duty to $12.6 billion in 2026/27, and a $5.3 billion fall over the next four years, the budget papers show. Interest rate rises had dampened sentiment and placed pressure on property prices, Treasury said. The government does see some light at the end of the tunnel, but not until the second half of calendar 2027, when it believes interest rates will start to ease. In the meantime, state economic growth will slow to one per cent in the next financial year, reflecting the war in the Middle East and its impact on energy prices, as well as the rates impact on household budgets and sentiment. But Mr Mookhey remains upbeat, saying NSW was still growing and pointing to an improved two per cent growth over the next couple of years on the back of heightened investment in data centres and energy projects. 'In fact, private investment is now the leading source of economic growth in NSW,' he told the NSW parliament. 'No other state can say the same (and) much of that investment is being driven by the renewable energy transition.' However, NSW is still facing a high debt burden with the state's liabilities heading to $193.8 billion in 2026/27, or 20.5 per cent of state gross domestic product, before rising over the next three years to $219.4 billion. As a consequence, its interest bill will increase to $9 billion in the new year. Still, Mr Mookhey believes he remains on track for what he hopes will be the state's final budget deficit - of $2.3 billion - in 2026/27 ahead of three surpluses out to 2029/30. The first surplus of $1.1 billion is due to be booked in 2027/28, assuming the government is returned in the March poll. Global credit ratings agency S&P said NSW needs to maintain that tight rein on spending to continue to support its AA+ long-term rating. 'Any delay in the improvements could pose downside risks to the rating,' it said. No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. 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