A government-run toll body will soon be written into law but Sydney motorists shouldn't expect it to drive down prices right away.
The Minns Labor government will introduce legislation into parliament this week to create NSW Motorways, a state-owned entity to oversee the Sydney toll road network.
The entity will operate tollways not subject to private concession arrangements such as the Sydney Harbour Bridge and tunnel, as well as the Western Harbour Tunnel and M6 Stage 1, once complete.
It will take over the collection of all tolls and oversee any future revenue adjustment mechanism to protect private toll concessionaires from losses and prevent windfall gains falling into their hands from system reforms.
Private contracts with concessionaires won't be overridden under the legislation, with the NSW government declaring it still prefers a "negotiated outcome" through a "direct deal process".
The Independent Pricing and Regulatory Tribunal will also be empowered to monitor toll prices, investigate specific tolling issues and make recommendations.
An independent tolling customer ombudsman would be set up to deal with disputes and complaints, with toll operators bound by its decision.
The legislation enacts recommendations from an independent review jointly led by former competition tsar Allan Fels.
In July, it found motorway tolls in Sydney were higher than necessary or desirable and the state government cap-and-rebate scheme was unsustainable.
The dominance of private toll-road operator Transurban, the only non-government owner of motorways in the state, was also highlighted as an obstacle to competition.
Recommended changes, including giving the NSW government power to set prices across the whole network, were not expected to begin until at least 2027.
Roads Minister John Graham said the government remained committed to taking back control of toll prices.
"We will transform the system into one that is works better for those who use it, particularly motorists in western Sydney who have little other choice than to spend big on tolls," he said.
Treasurer Daniel Mookhey said the legislation was a critical first step to establishing trust and equity in the sector.
"We aren’t spinning our wheels on tolling," he said.
The NSW budget, delivered in June, included $16.6 million to support reforms arising from the review, including a commitment to set up the motorway body.
