How Does Australia’s Toll Road System Work?

Australia's toll road system utilizes electronic detection, allowing for automatic payment through e-tags or number plate scans. It promotes smoother traffic flow, faster travel times, improved road quality, and safer driving experiences.

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Cassidy Rush is a writer with a background in careers, business, and education. She covers local and international finance news for Remitly.

Australia’s toll roads keep growing, especially around big cities like Sydney, Melbourne, and Brisbane. These roads are built by private companies and managed by local or state governments to help ease traffic, cut down on travel times, and keep routes in top shape for drivers.

At Remitly, we understand that toll roads may seem confusing to newcomers at first. Toll roads are a big part of driving in major cities and a factor to consider when thinking about the cost of living in Australia. In this article, we’ll walk you through how toll roads work, how to pay, and what happens if you don’t pay.

How toll roads work in Australia

In short, a toll is a fee for using different roadway systems. By collecting these payments, governments can improve infrastructure and keep up with maintenance. As you drive around Australia, especially in cities like Sydney, Melbourne, and Brisbane, you’ll probably come across toll roads.

Many other countries around the world use toll road networks. In fact, the very first form of payment for driving on a road was originally in the Middle Ages. Although the concept isn’t new, each country has its own way of operating these systems.

Most toll roads in Australia rely on electronic systems rather than physical toll booths. Your vehicle’s registration plate (also known as a number plate) or electronic tag is scanned, and the system charges you automatically. 

Toll roads connect highways, tunnels, and bypasses across several Australian states. In Sydney, for example, you’ll find the M7, M2, and the toll points on the Sydney Harbour Bridge. Melbourne has CityLink and EastLink. Meanwhile, Brisbane has the Clem7 Tunnel and AirportlinkM7. Other well-known toll roads include the Gateway Motorway and WestConnex in Queensland, New South Wales, and Victoria.

Why are toll roads used?

Toll roads provide several benefits to make your journeys easier:

  • Less traffic congestion: By offering alternatives to freeways, toll roads help spread out vehicle traffic more evenly across the network.
  • Faster travel times: Many toll roads are faster and have fewer traffic lights or merges, which can mean less time behind the wheel.
  • Better road quality: Tolls help pay for the costs of building and maintaining high-standard roads, bridges, and tunnels.
  • Safer driving: Well-planned layouts, clear signage, and modern infrastructure make for a safer trip.

If you’re trying to decide whether to use a toll road, think about the time and money savings overall. For daily commutes, you might find that paying for an electronic pass is more convenient than searching for free alternatives.

How the electronic toll collection system works

Gone are the days of rummaging for coins at a toll booth—Australia’s toll road system now uses automatic detection. Overhead gantries (often called toll points) have sensors, cameras, and sometimes transponders. They read your e-tag or scan your number plate, and the toll is charged to your account or pass.

To keep things simple, most states use operators like Linkt or E-Toll (in NSW) to manage payments. You can set up an account, link your vehicle’s number plate, or use a temporary pass if you don’t drive on toll roads often.

Current and future toll roads

Toll roads have been part of Australia’s transport network for years, and as cities are growing fast, more are on the way. New motorways and tunnels are constantly being developed to keep up with traffic demands, making it easier to get around in busy metropolitan areas.

Major toll roads in operation

  • Sydney: M2, M7, M5, WestConnex, Cross City Tunnel, Lane Cove Tunnel, and the Sydney Harbour Bridge/Tunnel.
  • Melbourne: CityLink (which includes the Tullamarine Freeway section) and EastLink.
  • Brisbane: Gateway Motorway, Logan Motorway, Clem7 Tunnel, Legacy Way, AirportlinkM7.

Each toll road has its own operator, but many are managed by Linkt (a brand owned by Transurban), which makes billing for multiple roads easier. In New South Wales, toll payments are handled by both E-Toll and Transurban. If you frequently drive in these areas, setting up a single account that covers all roads can save you time and prevent extra fees.

Upcoming and planned toll roads

As Australia’s population grows, more toll projects are underway. These expansions aim to ease congestion on older freeways and improve connections to suburban areas. To stay up to date on new toll roads and construction projects, check out local government websites, including:

If you’re settling into Australia, knowing about these new developments can help you plan your routes and avoid unexpected detours. 

How to use toll roads in Australia

Toll roads in Australia are easy to navigate, whether you’re a daily commuter or just passing through. If you have an e-tag or pass, tolls are deducted automatically. But even if you don’t, you can still use toll roads—just make sure to pay soon after to avoid extra fees.

E-tags and passes

An e-tag is a small device that attaches to your windscreen and automatically links to your account, making toll payments hassle-free. If you don’t drive on toll roads often or are in a rental car, you can use a temporary pass. 

  • E-tag accounts: Best for frequent drivers. You pay a deposit for the tag and set up automatic top-ups.
  • Passes: Ideal for occasional drivers or tourists. Register your number plate and pay as you go, or buy a pass for a specific period.
  • Rental vehicles: Many rental companies handle toll payments for you, usually adding a small daily fee. Always check the details before you hit the road.

Each state has its own toll categories, and larger vehicles like trucks and vans may pay higher rates. If you’re unsure, check with your toll provider for details.

Step-by-step guide to driving through toll roads

If you’ve never used a toll road before, here’s a simple process:

  • Sign up for an e-tag or pass. Check providers like Linkt or E-Toll NSW.
  • Attach your e-tag. Attach the e-tag near your rear-view mirror, or register your number plate if using a pass.
  • Enter the toll road. Look for signs marking toll routes. Overhead gantries will detect your e-tag or scan your number plate.
  • Keep moving. There’s no need to stop. Your trip is recorded automatically.
  • Pay your toll. If you have an account, the toll cost is deducted from your balance. With a pass, your linked card is charged after each trip or at the end of the pass period. 

The system is designed to be quick and convenient so you can focus on driving. If you change number plates or buy a new car, don’t forget to update your details with your toll provider to avoid surprise charges.

Toll payment procedures

Toll payments in Australia are flexible, with options to suit all types of drivers, whether you’re a daily commuter, an occasional traveller, or visiting from overseas.  While e-tags are the most common method, there are other ways to pay, so you can choose what works best for you.

How to pay for tolls

  • E-tag accounts: This is the easiest option for regular drivers. Once you sign up, you can link your credit card or bank account for automatic top-ups.
  • Online passes: Great for occasional use. Simply register online, enter your payment details, and pay per trip or for a set period.
  • Post-pay: Some toll operators allow you to drive first and pay later (usually within 3 days). Keep in mind that this might come with an extra fee.
  • Cash: These are becoming rare, as most toll roads are fully electronic. Some older or remote toll points may still have kiosks, but they’re not common.

Options for tourists and visitors

If you’re visiting Australia, toll roads might seem a bit tricky at first, but short-term passes make it easy. For visitors renting a car, the hire company usually handles toll payments for you, either by providing a pass or billing you afterward.

Or, if you’ll be borrowing a friend’s car or using a rideshare, check how tolls are charged. Many rideshare services automatically add toll fees to your fare, while borrowed cars may require you to let the owner know so they’re not surprised by any extra charges.

What happens if you don’t pay tolls?

Forgetting to pay a toll or skipping it on purpose can result in extra fees and penalties. The longer you wait, the more those costs can add up, so it’s always best to take care of toll payments as soon as possible.

Penalties for unpaid tolls

If a toll payment isn’t made on time, the toll operator will send a notice to the vehicle’s registered owner. This includes the original toll fee plus an administration charge. Ignoring this notice can escalate the issue to state authorities, resulting in a formal penalty warning with significantly higher costs.

In rare cases, multiple unpaid tolls could lead to legal action. However, most toll operators are willing to work with you if you reach out. If you’ve received a letter or text about an unpaid toll, contact the operator as soon as possible. You may even be able to set up a payment plan or request a fee reduction, depending on the circumstances.

Steps to resolve toll violations

As a newcomer, it’s easy to make mistakes when you aren’t familiar with local systems. If you’ve driven through a toll road without an e-tag or pass, or if your account didn’t have enough money at the time, here’s what to do:

  • Check your notice. Confirm the date, time, and vehicle details.
  • Contact the operator. Visit their website or call their support line. Many state-run portals let you pay directly.
  • Pay as soon as possible. The sooner you settle the payment, the less likely you are to face extra charges.
  • Update your details. If your toll went unpaid due to a plate change or an expired payment method, make sure your account is up to date.

Tips for keeping toll costs low

Using toll roads can save time, but costs can add up if you’re not careful. Luckily, there are ways to minimise your expenses and still enjoy smoother travel.

Choosing the right payment plan

  • Frequent drivers: An e-tag account with automatic top-ups is often the most cost-effective option. Some toll operators even offer discounts for monthly or annual plans.
  • Occasional drivers: If you only use toll roads now and then, a short-term pass might be the smarter choice.
  • Compare providers: Checking deals from Linkt or E-Toll can help you find promotions, especially around holidays or specific routes. Some plans also bundle multiple toll roads under one account, so you don’t have to manage separate payments for different cities.

Finding discounts and rebates

Certain groups, like seniors, residents near a toll road, and eco-friendly vehicle owners, may be eligible for discounts or rebates. 

For example, CityLink in Melbourne offers discounts for accounts linked to automatic payments, and EastLink has special pricing for certain vehicle types. If you qualify, registering for these benefits can help you save money.

FAQs

How does Australia’s toll system work?

In Australia, toll roads rely on an electronic system. Overhead gantries detect your electronic tag or scan your number plate as you pass. The fee is then debited automatically from your account or pass. If you don’t have an e-tag or pass, you can pay online or arrange a short-term pass before or soon after travelling on the toll road.

How to pay for toll roads in Australia?

Most people use e-tags for daily commuting. Others opt for casual passes, while occasional drivers can post-pay within a few days of travel. You can create an account with a toll operator website or call their customer service. If you’re frequently traveling between different cities, a pass covering multiple roads might be the easiest choice.

How do tourists pay for tolls in Australia?

Tourists can purchase temporary passes from operators like Linkt or E-Toll. Another option is to rent a car with a toll road agreement included. This typically adds a daily fee or pay-as-you-go toll charges. It’s important to understand the rental company’s policy, as administration costs can vary.

What happens if you go through a toll without an e-tag?

If you drive through a toll road without an e-tag or valid pass, the toll operator will match your number plate to the vehicle’s registered owner. They’ll send a toll notice, often with an administration fee. Paying quickly can avoid additional penalties. If you ignore the notice, you may face fines or legal action.