Two-way tolling on Sydney Harbour Bridge and Tunnel set to start in 2028

Motorists will be charged two-way tolls on the Sydney Harbour Bridge and Harbour Tunnel from as early as 2028, when a third harbour motorway crossing is due to open to vehicles.

Amid growing pressure to demonstrate progress from its promised reform of Sydney’s patchwork of toll roads, the government has reached a deal with private motorway operator Transurban and other investors to scrap administration charges on toll notices from the middle of next year.

The administration fee on a toll notice has been $10, but doubled to $20 if not paid within 55 days. Under the changes, motorists will receive early text and email notifications without fees.

However, stronger enforcement measures will be applied to those who still fail to pay tolls.

The Minns government has also confirmed that it will introduce charges for northbound trips on the bridge and tunnel, which will be used to help pay for the indefinite extension of a $60-a-week cap on tolls across Sydney. The cap had been due to expire on January 1.

The start date for two-way charges will hinge on the opening of the $7.4 billion Western Harbour Tunnel, which is due to be completed in late 2028 and will be tolled. The 6.5-kilometre twin tunnels will link the WestConnex motorway under the inner west to the Warringah Freeway in the north.

At present, only southbound motorists on the government-owned and operated Harbour Bridge and Tunnel pay tolls, which vary from $4.41 in peak periods to $3.20 off-peak and $2.67 at night.

A government-commissioned review led by former competition watchdog chairman Allan Fels recommended last year that bidirectional tolls be applied, arguing it would make Sydney’s tolling system fairer and allow extra revenue to be redistributed to help lower charges elsewhere.

Based on an average of 105,000 northbound trips a day on the bridge and tunnel, the government could collect about $145 million a year from the new changes.

The government has been negotiating with Transurban and other large investors about a shake-up of tolling contracts since July 2024. Both sides initially held hopes of reaching a deal by last Christmas, but the government now expects to conclude negotiations by the middle of next year.

Transport Minister John Graham said the extra revenue raised from two-way charges on the bridge and tunnel would be directed to ongoing toll relief, which was most needed in western Sydney.

“This all comes back to fairness. If you live in western Sydney, you have been paying tolls in both directions and seeing them rise with frustrating regularity. If you only use the Harbour Bridge or tunnel, you have paid in one direction and the toll has almost never gone up,” he said.

The Fels review also called for two-way tolling on the Eastern Distributor motorway. However, any introduction of tolls on southbound journeys would hinge on negotiations with Transurban and other investors which hold the long-term contract for the Eastern Distributor. At present, cars are charged $10.16 for northbound journeys and trucks $20.31.

The government said the negotiations with Transurban and other concessionaires had cleared the way for scrapping of administration fees on toll notices. Some 46 million toll notices with administration fees totalling $618 million were issued for unpaid charges on Sydney’s toll roads last financial year.

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