On 6 October 1996 the Premier announced that private car users of the M4 and M5 Motorways will have the opportunity to have their tolls refunded by the State Government. A copy of the Premier's News Release and a brochure detailing the M4/M5 Cashback scheme are attached.

The scheme commenced on 1 January 1997, and the first claim for a rebate can be lodged from 31 March 1997 and then each subsequent quarter.

A number of government officers have queried the exclusion of vehicles, taken on a private/official basis as part of their salary package, from the rebate system. The officers have pointed out that they have paid for private usage in their salary package and that the trip to and from work is classified as private. Accordingly they should be eligible for the rebate.

In introducing the M4 and M5 Cashback scheme, the rebate policy took into account federal income tax considerations as they apply to the toll companies, business users and individuals, as well as the need for an efficient, cost effective, RTA monitoring mechanism.

The Premier's announcement makes clear that the rebate would apply solely to privately registered vehicles. Accordingly, officers using motor vehicles as part of a salary packaging arrangement are not eligible for the refund.

C. Gellatly
Director-General

Issued: Strategic Policy and Reform Division
Contact: Tom Whelan
Telephone: 9228 5538
Date: 31 January 1997

M4 and M5 CASHBACK

The Premier, Mr Bob Carr, today announced that private car users of the M4 and M5 Motorways soon will have the opportunity to have their tolls refunded by the State Government.

Speaking at the ALP State Conference, Mr Carr said this scheme will save regular private car users of the M4 around $750 a year and $1250 a year on the M5.

The scheme can be implemented because the Government is dealing directly with private car users rather than with the tollroad companies.

Mr Carr said the cashback scheme is a fair deal for motorists.

"It is a simple arrangement - you pay the toll, send us the bill and we will give you the money. This cashback scheme will relieve the toll burden for many users of the M4 and M5," Mr Carr said.

"The Liberals secret deal and never before mentioned tax arrangements would have resulted in the Government writing a blank cheque to remove the tolls. However, we never gave up hope."

"In the past 12 months we have been searching for a solution and seeking advice that doesn't create Federal taxation problems. What we have here is a good solution that helps the people we pledged to help."

"We have doubled road funding for this long neglected area and now we will make the majority of users immune from the tolls." Mr Carr said.

The details of the "M4 and M5 Cashback" are:

Private car users no matter where they live in NSW are eligible for a refund. In most cases, business can already claim tolls as a tax deduction.

To have their tolls refunded, private car users must set up an account with Statewide Roads for the M4 and/or Interlink for the M5. In return, account holders will be given a swipe card which is used instead of cash to pay tolls. Many motorists already use this existing system to pay the tolls.

Each quarter, private car account holders will be able to submit their toll bill (provided by Statewide Roads and/or Interlink) to the Government for reimbursement.

The scheme starts on 1 January1997, meaning the first claim can be lodged from 31 March 1997and then each subsequent quarter. Private car users will then be reimbursed by the Government for the full amount of tolls paid during that period.

The scheme, costing an estimated $74 million, will be funded from consolidated revenue meaning there will be no cut to the roads budget. It is expected that approximately 76,000 motorists will take up the offer. The toll on the M4 is $1.50 and $2.50 on the M5.

Media contact: Andrew Woodward, Michael Knight's Office (m) 041 920 2317.

The State Government has announced that private motor vehicle drivers on the M4 and M5 Motorways will be eligible to receive a refund on all tolls they pay on these roads.

 

I still have more questions, who can I talk to?

Please call the RTA. It's a free call.

1800 621 109

 

M4/M5 Cashback

Am I eligible?

If you have a privately registered car or motor cycle you can claim the refund. If you drive a car that is registered in the name of a company, or a government or rental vehicle, or a vehicle that is not registered in NSW, you are not eligible to claim the refund.

How do I find out if my vehicle is privately registered?

You need to check your annual registration renewal.

What do I have to do?

It's easy. Just open an account with Statewide Roads if you use the M4 or Interlink if you use the M5.

How can I get an application form?

You can pick up an application form at the toll booths on the M4 or M5. You can also get one direct from the tollroad operators or motor vehicle registries. The tollroad operator will send you a new swipe card.

Contact numbers are:

M4 - Statewide Roads: 02 9748 7488

M5 - Interlink: 02 9825 1000

 

What happens at the toll booth?

Instead of paying cash at the toll booth, you swipe your new card through the card reader, or hand it to the toll booth operator. Both the Statewide Roads or the Interlink account cards can be used on either roads.

Will using the card take any longer than cash?

No. It takes about the same time.

What are the costs for having an account?

M4 - Statewide Roads will debit $60 from your credit card. When your tollroad account gets down to a $6 credit, Statewide will again debit another $60 to top up your account.

M5 - Interlink will debit $100 from your credit card, or you can organise to pre-pay by cheque. When your tollroad account gets down to a $20 credit, Interlink will debit another $100 or you send in another pre-payment cheque of $100 to top up your account.

How much will I get back?

The State Government will refund all money you pay to use the Motorways. There are no hidden Government administration charges. Regular users of the M4 could save as much as $750 a year and users of the M5 could save as much as $ 1,250 a year. There is no limit to the number of trips you make - you will receive a refund every time you use the tolls.

How will I know how much I have paid?

The tollroad companies will send you a statement every month that shows how many times you have used the motorway. You need to keep these statements and send them to the RTA with your claim form.

When will I get my money back?

The Cashback Program starts from January 1, 1997. Your first claim should be lodged with the RTA in April 1997 - this is for the tolls you have paid in January, February and March. Refunds will continue to be paid every three months. So remember to fill in your claim form in July, October, January and April each year.

What if I already have an M4 or M5 account?

The tollroad operator will contact you to see if you are eligible to claim the refund. If you are eligible continue using your existing card until you are sent a new card by the tollroad operator. By using your card, you will be able to claim what you pay to use the Motorway from January 1, 1997 - the same as everyone else.

Can someone else use my card?

Cashback cards can be used by other people as long as their car or motorcycle is privately registered in NSW.