Sydney Toll Road Reform Delayed Again as Tolls Set to Rise Next Month — Sydney Auction Clearance Rate at 47%

Weekly Market Focus

Sydney motorists are set to face another round of toll increases. Despite the NSW Government spending the past two years negotiating with toll road operators in an effort to reform the state’s tolling system, parts of the reform package originally scheduled to commence in July this year have failed to materialise. From 1 July, tolls on major roads including the M2 Motorway, M7 Motorway, NorthConnex and the Eastern Distributor will increase again, taking cumulative rises over the past year to more than 4%.

According to internal government documents, the first phase of a toll reform program known as “Project Charlotte” was originally planned to begin in July 2026, covering assets such as the M7, Lane Cove Tunnel, Cross City Tunnel and NorthConnex. However, no firm implementation timetable has yet been announced. The government has only confirmed that the removal of the AUD $10–$20 administrative fee attached to toll notices will still proceed in “mid-2026”, but has not provided a specific commencement date.

Meanwhile, toll increases continue under existing contractual arrangements. From July, the maximum toll on the M2 will rise to AUD $10.64, while the M7 and NorthConnex will increase to AUD $10.50 and AUD $10.64 respectively.

The NSW Government has already made its AUD $60 weekly toll cap permanent and is planning to introduce two-way tolling on the Sydney Harbour Bridge and Sydney Harbour Tunnel as early as 2028 to help fund the long-term cost of the subsidy scheme. However, the government has yet to clarify whether tolls on the harbour crossings themselves will increase in the near future.

Last Week’s Auction Results

Sydney: A total of 865 properties were taken to auction, with results reported for 520 properties. Of these, 244 were sold, resulting in a clearance rate of 47%. The total auction value reached AUD 233,150,664, with a median price of AUD 1,520,000.

Melbourne: A total of 881 properties were taken to auction, with results reported for 598 properties. Among them, 313 were sold, achieving a clearance rate of 52%. The total auction value amounted to AUD 196,434,109, with a median price of AUD 905,000.