Motorists to save up to $750 a year on tolls under new rebate scheme

The government will rebate 40 per cent of tolls once a motorist spends more than $375 in a year. The maximum annual benefit will be $750.

Cash rebates will be paid quarterly into motorists' bank accounts.

Premier Dominic Perrottet said the scheme, which would be included in this month's state budget, would run for two years while the government finalised and implemented long term changes to tolls.

"This new program will provide more relief, more often to more motorists," he said.

"The number of road users receiving toll relief will more than double. Almost 300,000 extra drivers will benefit."

For tolls incurred up to 30 June 2022, road users can continue to receive vehicle registration relief until 30 June 2023.

For tolls incurred from 1 July 2022, customers can access the new program and will receive their first rebate payment in early 2023, followed by quarterly payments.

The M5 South West Cashback Scheme will continue.

Opposition Leader Chris Minns, who is yet to announce Labor's tolls policy for the March 2023 election, said it was "a Band-Aid solution for a broken system".

"This announcement confirms the government has created a tolling monster across Sydney, and lost control of the toll system," he said.

"Dominic Perrottet has created the most tolled city on the face of the earth and now his tolls mess has come full circle.

"He signed the contracts to privatise our roads and created a toll road monopoly that is driving a hole in the back pocket of Sydney motorists.

"Now he's forced to spend millions of taxpayer money to compensate motorists for his cost of living crisis.

"Drivers will get toll relief under this package, but lose free car registration.

For the top toll paying drivers this could mean less than $200 in toll relief. Then drivers will be hit with bigger toll bills on July 1 when toll rises will be double the usual amount.

"This extra assistance of $130 million next year is welcome - the trouble is that the total costs of tolls that this government has signed up NSW drivers to is $115 billion over the life of these agreements - all going to private toll road operators.

"This will get even worse as the Government opens more toll roads.

"The government's own toll relief data shows that of the top 20 tolled postcodes 17 of 20 are in Western Sydney.

"Drivers in Sydney right now pay over $2.3 billion a year in tolls.