Registered Vehicle Owners to Become Responsible for Unpaid Tolls
From 1 July 2026, NSW Motorways have introduced a significant change to the management of unpaid toll fees. Under the new arrangements, the registered vehicle owner (i.e. ‘the dealer’) will be responsible for the initial payment of all unpaid toll charges and associated fees, regardless of who was driving the vehicle at the time. The previous ability to routinely transfer toll liability via a nomination to another driver via provision of a statutory declaration is no longer an option for NSW dealers.
It is the view of the AADA-NSW State Dealer Advisory Group (SDAG) that if the Government’s objective is to improve toll recovery, the focus should remain on ensuring timely registration transfers by new owners and improving information-sharing processes between Transport for NSW and toll operators. This will be a reform measure that the AADA-NSW SDAG will pursue.
What does this mean for dealerships in NSW?
For dealerships, this means toll notices on dealer owned trading stock, demonstrator vehicles, service loan cars and test-drive vehicles will become payable directly by the dealer to the tollway operator. The dealer will need to pursue the driver of the vehicle for reimbursement.
Will the changes result in a financial and administrative burden for NSW dealers
Undoubtedly the change creates a requirement for increased administrative resources to reconcile toll fees and reissue invoices to third parties, increased financial exposure and administrative workload for dealerships. The likelihood of customer service disputes in this regard is also to be factored.
Immediate Actions Recommended by AADA
AADA recommends that NSW dealers review their current processes and documentation as the changes have already taken effect. Key priorities include ensuring all dealership-owned vehicles are linked to a toll account, updating loan-car, test-drive and rental agreements, and introducing clear authority to recover tolls and administration fees from vehicle users. AADA will pursue guidance from the NSW Government on what best practice in this regard entails. Dealers may also choose to seek their own professional advice regarding employee vehicle-use arrangements and payment of toll fees from employees.
AADA – Next steps
AADA remains concerned that the new approach transfers financial risk, administration, recovery costs and dispute management away from government and toll operators and onto registered vehicle owners.
AADA will engage with the relevant NSW Minister, the NSW Motorways Customer Advocate, NSW Tollway Ombudsman and Transport for NSW to pursue better outcomes for NSW dealers and lessen the impact on dealerships.