Transurban scraps paper toll notices in NSW's biggest unpaid tolling overhaul in more than a decade

Toll road operator Transurban (ASX: TCL) and the NSW Government have announced a comprehensive digitisation of the state's unpaid toll reminder system, replacing posted paper notices and their accompanying administration fees with email and SMS notifications in what has been described as the most significant improvement of unpaid tolling processes and enforcement in more than a decade.

The reforms, which are expected to be phased in from next month, eliminate toll notice administration fees that had been set at $10 for a first notice and $20 for a second notice, with higher rates applying on Westlink M7.

The NSW Government's June 2026 Budget papers say scrapping the fees will save motorists at least $10 a notice, with the charges having cost motorists $60 million last year.

The shift to digital notifications will also compress the timeline for resolving unpaid tolls from 78 days under the old paper-based system to 21 days before a matter is escalated to debt collection or infringement action.

Digital reminders will be sent via email and SMS where contact details are available.

Transurban says the changes will lead to earlier communication with motorists, the switching off of toll notice administration fees and "clear consequences for people who refuse to pay their tolls".

The changes will also provide support for motorists in financial hardship.

"These reforms represent the most significant improvement of unpaid tolling processes and enforcement in more than a decade and are expected to deliver a simpler and easier experience for NSW motorists," says Transurban.

"Digitising toll notices will result in a better customer experience and reduced operating costs."

Transurban says the reforms protect the $36 billion investment by Transurban and its partners in Sydney's road network and that digitisation will deliver reduced operating costs.

The company and its investment partners operate a portfolio of Sydney toll roads that collectively represent one of the largest concentrations of urban motorway infrastructure in Australia.

The scale of the paper-based system being replaced is substantial with the NSW Government revealing that 46 million toll notices carrying administration fees totalling $618 million were issued in FY24-25.

The digitisation reforms are being implemented as part of a broader toll reform negotiation between the NSW Government and concessionaires including Transurban.

"These changes are consistent with the government’s commitment to respecting the value of existing contracts and the revenue of concessionaires and are contingent on broader toll reform outcomes," says Transurban.

"The enforcement reforms mark one of the last steps towards a final toll reform package, expected to be announced over the coming weeks.

"Together these reforms are expected to deliver clear benefits for motorists and the state, while also protecting the $36 billion investment by Transurban and its partners in Sydney’s road network."

Transurban last week reported a 0.1 per cent increase in traffic across the group's portfolio in May compared to a year earlier.

The trend in May improved in Sydney, remained consistent in Melbourne and declined in Brisbane compared with April.

Month-on-month, Sydney traffic increased by 0.1 per cent as construction activity from the M7-M12 Interchange abated, while Melbourne traffic grew by 1.7 per cent, including the contribution from the West Gate Tunnel project.

Brisbane traffic fell by 3.2 per cent, largely due to weather impacts, with rainfall for the month about four times that of May 2025.