Transurban’s profits surge as motorists are slugged with toll increases above inflation

Motorway group Transurban’s profits surged fivefold with the results revealed after drivers were slapped with toll increases above the latest inflation rate.

The company’s full-year profit for 2022-23 soared by 429.9 per cent to $92million, a level five times the $16million profit of 2021-22 when lockdowns saw fewer people drive.

Transurban, which owns motorways in Sydney, Melbourne and Brisbane, saw its toll revenue climb by 21.8 per cent to $2.831billion.

In its results presentation, Transurban boasted that high inflation in financial year 2023 would continue helping them in financial year 2024.

‘Some further benefits of FY23 inflation will continue to flow through FY24 revenue and will compound over time,’ it said.

While inflation has moderated from high levels, the lag in official data publication means motorists continue to cop sharper price increases in later months. 

Sydney motorists on July 1 saw their tolls rising by more than the June quarter inflation rate of 0.8 per cent over three months.

On the M7 motorway in the city’s west, tolls rose by 13 cents to $9.51, a 1.4 per cent increase.

In its results presentation, Transurban boasted that high inflation in financial year 2023 would continue helping them in financial year 2024

It was a similar story with the North Connex where there was a toll rise of 12 cents, taking it to $9.35.

While the quarterly and annual pace of inflation moderated in the June, the toll increases on July 1 didn’t reflect that because the Australian Bureau of Statistics didn’t release the June quarter inflation data until July 26.

While some toll increases are linked to inflation, other factors are taken into account under contracts signed with various state governments, with some increases occurring annual and others quarterly. 

Roads Minister John Graham in late June admitted the upcoming toll increases for July 1 were tough, following a toll review by former Australian Competition and Consumer Commission chief Allan Fels.

‘This latest toll price rise arrives at a time when the cost of living continues to bite hard at families and individuals across NSW,’ he said.

Transurban’s results presentation acknowledged tolls were adding to the cost of living crisis, referring to the New South Wales government review. 

‘The Review has identified congestion, travel-time savings, cost of living impacts and inconsistencies in different tolling arrangements as areas for consideration,’ it said.

The company’s full-year profit for 2022-23 soared to $92million, a level five times the $16million profit of 2021-22 (pictured is a traffic jam at the entrance to Sydney’s Eastern Distributor, owned by Transurban)