How to save thousands on toll-road charges

Just like taxes and going to the dentist, toll roads are a necessary evil – but what if there was a way to save thousands of dollars each year on usage charges?

Well if you live in New South Wales, there is. As of January 1 2024, Australia’s most populous state has introduced a new toll road rebate that could see motorists recoup up to $7280 per year in toll charges.

The new scheme introduces a $60 weekly toll cap for motorists, meaning hundreds of thousands of residents are eligible for a refund on any money they spend over that amount on tolls.

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Service NSW estimates 720,000 motorists will benefit from the new rebate being trialled over the next two years, fulfilling an election promise by the New South Wales Labor government.

Sydney has one of the most-tolled road systems in the world, and it’s estimated drivers spend $2 billion each year on tolls. It’s hoped the NSW rebate scheme — which is still little-known by a lot of drivers — will help relieve the pressures felt by the rising cost of living.

The new scheme replaces an existing toll road rebate introduced by the previous Liberal government that allowed drivers to claim back $750 per year and save 50 per cent on vehicle registration, providing they spent more than $375 annually on tolls.

How does it work?

To be eligible for the rebate, drivers must:

• Be a NSW resident
• Hold a personal toll account with a NSW toll service provider
• Spend more than $60 per week on toll charges.

To access their rebate, motorists need to link their toll account to MyServiceNSW online and then lodge a claim form on the Service NSW app or website. Claims can be made quarterly and will be available from April 2024.

To check if you are eligible for the rebate, click here: Service NSW

Which toll roads are included?

Every toll road in New South Wales is included in the scheme, with some minor exclusions.

Motorists who are already registered for the M5 South-West Cashback scheme, for example, won’t be able to claim both rebates on that road.

Rideshare vehicles, taxis and cars registered for business use are also excluded, as are heavy vehicles with a tare weight of 2794kg or higher.

Trips taken on toll roads in other states are also ineligible.

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How much can I claim?

The NSW government has set aside $561 million over two years for the rebate trial, however there is a cap on how much individuals can claim each week. A fair-use provision caps the maximum weekly refund at $340.

Residents in Sydney’s north-west and west are forecast to benefit most from the rebate, according to Service NSW, who said drivers that spend “an average of $200 a week using their individual tag or licence plates on tolls can expect around $7280 in rebates a year”.

Is the rebate offered in other states?

No, sadly. No other state currently offers a rebate scheme similar to what’s available in New South Wales.

QLD does have the catchily named ‘Go Between Bridge Toll Credit Scheme’ that allows eligible Brisbane residents to claim a $100 toll credit, however it expires in mid-2024.

A small solace for drivers in states other than New South Wales is they already spend substantially less on tolls. According to the Australian Automobile Association (AAA), motorists in Sydney have an average weekly spend of $81 on tolls which is the highest in the nation.

Drivers in Melbourne and Brisbane average between $57-58 per week, which is still a considerable cost. Over a year it adds up to about $3000, which is more than what drivers will spend on fuel and insurance premiums combined.

Another silver lining? Toll roads only operate in Australia's eastern states. They simply don't exist in South Australia, Western Australia, the Australian Capital Territory or the Northern Territory.