Australians Pay Over $3 Billion in Toll Roads – And Costs Are Set to Rise

Australians are now paying more than $3 billion per year to use toll roads in Sydney, Melbourne, and Brisbane, and with prices continuing to increase, these costs are changing how many people approach private transport.

A recent investigation by the ABC’s Four Corners highlighted how much motorists are paying, with nearly all toll roads in the three major capitals owned by Transurban. In the 2023-24 financial year alone, Transurban recorded a staggering $3.283 billion in revenue from toll roads across Australia. This is a sharp rise from the $2.437 billion collected in the pandemic-impacted 2021-22 period, showing just how significant toll road costs have become.

Transurban's Toll Road Empire

Transurban is the key player in Australia’s toll road industry, holding full ownership and management over major roads in Melbourne and Sydney. In Melbourne, the company owns CityLink, while in Sydney it controls the M2 Hills Motorway, Lane Cove Tunnel, M5 South-West, and Cross City Tunnel. Beyond this, Transurban has majority or equal-part stakes in several other toll roads, including the Eastern Distributor, Westlink M7, WestConnex, and NorthConnex, and operates all of Brisbane's toll roads through Transurban Queensland.

Toll Roads Eating into Household Budgets

For many motorists, the cost of toll roads represents a significant portion of their income, particularly in Sydney, where tolls can eat up as much as 20% of a commuter’s earnings. According to Four Corners, a driver commuting from Wollondilly to Sydney’s CBD can spend 17% of their average income on tolls. It's even worse for those driving from the Sutherland Shire or Liverpool, where toll costs for a commute to Hornsby can consume up to 20% of income.

Melbourne drivers fare slightly better, but those commuting to the CBD from the Mornington Peninsula or Greater Dandenong still spend almost 12% of their average income on toll roads. In Brisbane, while the costs are lower for general city commutes—about 6.5% for those from Bribie Island and Caboolture—those driving to the airport face up to a 12% toll burden if coming from areas like Ipswich or Forest Lake.

Rising Costs and Future Outlook

Unfortunately, the cost of using toll roads is only expected to rise. These fees are pegged to the Consumer Price Index (CPI) and increase with inflation, but even in periods of low inflation, there is a minimum price increase of 4%, thanks to contracts Transurban has signed with state governments.

While Transurban is currently working with the New South Wales government to reform its toll road network, drivers across the country will still likely face increasing toll costs, forcing many to rethink their reliance on private transport for their daily commutes. As tolls continue to rise, the pressure on household budgets will increase, and with toll roads covering key commuter routes, many Australians are left with few alternatives.

Conclusion

With Australians paying more than $3 billion annually in tolls and prices set to keep rising, the impact on household finances is significant. As the toll road network expands and costs rise, it could fundamentally change how Australians approach private transportation—forcing a shift towards public transport or other alternatives. In the meantime, commuters will need to grapple with the ever-growing costs of using Australia’s toll roads.