Sydney Toll Reform: Who Benefits and Who Loses? — Sydney Auction Clearance Rate at 68%

Week’s Key Focus

According to internal models from toll road giant Transurban, drivers in parts of western Sydney and along the corridor from Sutherland to Chatswood and the Northern Beaches will pay more under the city’s toll reform.

Transurban’s model shows that if the government adopts the proposed reforms, drivers on the M7 corridor will face higher costs. Short-trip charges would increase by 33% per kilometre, and removing the existing cap would result in long trips on the M7 costing over 40% more. Additionally, the reforms could lead to drivers avoiding toll roads and opting for free alternatives, thereby increasing congestion in areas such as the Rozelle Interchange, Victoria Road, Anzac Bridge, King Georges Road, Botany Road, and O’Riordan Street.

Former competition regulator Allan Fels’ review suggests that the longer drivers travel, the less they should pay per kilometre. It also recommends introducing two-way tolls on the Sydney Harbour Bridge, Harbour Tunnel, and Eastern Distributor. Fels is skeptical that the reforms will cause congestion and believes Transurban’s model is misleading. The Business Council of Australia also worries that the reforms might undermine existing agreements and increase sovereign risk.

Roads Minister John Graham stated that the government is committed to “rebuilding a fairer toll network.” Premier Chris Minns ruled out changes to the M5 cashback scheme or its toll cap but indicated that the government is prepared to legislate to ensure a fairer system.

Sydney’s toll reform will have complex implications. As the government evaluates the proposed changes, both drivers and investors are closely monitoring potential future developments.

Auction Results Last Week

Sydney: 683 houses went to auction, with 455 results reported and 310 sold, resulting in a clearance rate of 68%. The total auction value was AUD 391,707,467, with a median house price of AUD 1,560,000.
Melbourne: 921 houses went to auction, with 703 results reported and 428 sold, resulting in a clearance rate of 61%. The total auction value was AUD 348,240,555, with a median house price of AUD 950,000.