Extended motorway fees flagged for 'most-tolled city'

Residents in Australia's most-tolled city could pay lower charges, but under longer contracts, as the NSW government tries to strike a deal with motorway operator Transurban to introduce a fairer system.

State officials are locked in talks with Sydney's monopoly private toll road firm for a network-wide system of pricing, amid concerns about the unsustainability of taxpayer subsidies for motorists.

But Premier Chris Minns - who has repeatedly referred to the NSW capital as the "most tolled city in the world" - said he wouldn't rule out extending end dates for toll charges on some roads as part of the planned overhaul.

Roads Minister John Graham (left) and Premier Chris Minns
Roads Minister John Graham (left) and Premier Chris Minns want to lower road tolls across Sydney. (Bianca De Marchi/AAP PHOTOS)

"The government is locked in negotiation with the private toll road operator," he said on Tuesday.

The longest existing contract for Sydney's network of toll roads extends to 2060.

"If, for argument's sake, that went to 2065, but it meant that we could materially drop tolls for a tradie in Penrith today, then that's something that I'm considering," the premier told reporters.

Roads Minister John Graham has outlined a series of proposed changes ahead of legislation to set up a state-owned tolling entity being introduced to parliament.

The body, to be called NSW Motorways, will collect tolls, ensuring windfall gains go to the public while protecting private operators from losses.

An independent tribunal will monitor prices and make recommendations, and a tolling ombudsman will deal with complaints and disputes.

"We deserve a pricing system that has a more equitable cost burden for users, and better social outcomes for our people ... (and) that incentivises a more efficient and productive use of our motorway assets," Mr Graham said on Monday.

Taxpayers have been subsidising drivers on toll roads under a $60 weekly cap on charges for individual users, but the minister acknowledges the system can't continue.

"We can't throw billions more taxpayers dollars at this problem on top of the existing contracts," he said.