Congestion tax in the mix for Sydney CBD, secret document reveals

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Congestion tax in the mix for Sydney CBD, secret document reveals


“I expect the departments to look at all options — that’s their job — but clearly not every option ultimately becomes government policy.”

Introduction of a congestion tax would be politically fraught. Former transport minister Andrew Constance ruled out such a charge in 2019.

The draft document also suggests altering Sydney’s road network to better serve cyclists and pedestrians. Credit:James Brickwood

Labor leader Chris Minns said western Sydney motorists would bear the brunt of future congestion and distance-based charges.

“Here we go again. The NSW government has run out of money, and it’s motorists who will pay,” he said.

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“It’s no surprise that yet again, western Sydney will lose the most, without proper public transport and infrastructure to move around the city.”

Minns, who has seized on tolling as a key issue before next year’s state election, said it would only become more expensive to own a car in Sydney.

The government is conducting a wide-ranging review of Sydney’s toll roads, and Premier Dominic Perrottet has signalled it would consider more distance-based charges.

The confidential document dated February this year spruiks the government’s work in “leading reform” on road user charges, citing a 2.5¢ per kilometre road user charge for light electric vehicles from 2027.

With the government grappling with a surge in the cost of mega transport projects, the strategy document warns that financial pressures from the state’s burgeoning road and rail networks “continue to grow” as revenue sources stagnate.

“Private vehicles will continue to be an important part of the transport landscape, but we cannot afford to continue expanding our networks to meet unlimited growth, particularly in peak periods,” the document states.

Changes to public transport fares to “reflect the true cost of trips” and levies on new developments are among potential measures outlined in the long-term strategy document to “expand revenue sources”.

The strategy also suggests transforming how the city’s road network is used to prioritise pedestrians.

“Considering the limited road user space available in many built-up areas, this may involve the physical reallocation of road space to ensure there is enough space for pedestrians,” the document reads.

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