Executive Summary
- NatRoad believes the current three times truck toll multiplier in NSW is unjustified and has a detrimental impact on the road freight industry.
- We recommend reducing the multiplier, implementing variable toll rates, and incentivising lower-emission vehicles.
- In addition, an independent regulator would ensure fair and equitable tolling practices for heavy vehicles.
Column on Tolling for Heavy Vehicles
Past inquiries into heavy vehicle tolling have repeatedly highlighted the unjustified nature of the current three times truck toll multiplier. In 2015, the Victorian Auditor General found no objective assessment of alternative funding approaches, and agencies were unable to justify the tolling of goods vehicles. The 2017 NSW Parliamentary inquiry into road tolling recommended publishing evidence supporting the multiplier, yet seven years later, such evidence remains elusive. In 2019, an industry-commissioned report, including input from NatRoad, showed a lack of operational savings for trucking businesses using toll roads, undermining arguments in favour of the multiplier.
And just last year, we called for the multiplier to be slashed in NSW.
Despite these findings and recommendations, the interim report of the NSW Independent Toll Review has not adequately addressed the central issue. Instead, it recommends further modelling in an attempt to find a justification for a policy that has never stood up to scrutiny.
The Review’s failure to confront this issue reflects a broader problem in NSW’s approach to tolling, which prioritises infrastructure financing over transport planning and public policy goals.
NatRoad’s recent submission to the Review emphasises several key recommendations aimed at creating a fairer tolling system for heavy vehicles.
We argue the current three times truck toll multiplier is unjustified and disconnected from commercial realities. The assumption these higher tolls can be passed onto customers is misguided. Additionally, lower tolls should be implemented for cleaner, lower-emission vehicles to support public policy goals on emissions reduction. There is also a strong case for independent regulation of infrastructure user charges to ensure fairness.
Our recommendations to the NSW Government include replacing the three times truck toll multiplier with a two times multiplier and expanding the M5 East and M8 truck rebate for existing concessions. We also advocate for variable lower toll rates to incentivise off-peak journeys, as well as discounts for multiple toll journeys, and exemptions for zero-emission heavy vehicles. Furthermore, we call for the establishment of an independent regulator to oversee new and varied tolling concessions and pricing arrangements.
While we agree with some findings of the review, such as the need for independent toll setting and off-peak pricing, we believe that any reform package that fails to reduce the three times truck toll multiplier will not alleviate the undue burden on NSW small businesses and supply chains. Meaningful reform is essential for a fair and sustainable transport system.
NatRoad remains committed to advocating for the interests of the trucking sector, and we will continue to push for changes that promote fairness and efficiency in heavy vehicle tolling, both in NSW and nationally.
Become a member
Join NatRoad and be part of the conversation. Get industry updates on our advocacy work on behalf of the industry. Learn more here.
