The NSW Government has announced a major overhaul of NSW’s road recategorisation system, giving councils more clarity and control over how roads are classified, funded and maintained.
The ‘New Approach to Road Recategorisation’ will allow councils to apply for changes at any time, replacing the ad hoc, one-off reviews of the past.
The shift is designed to ensure roads are categorised according to their actual use, whether that is increasing freight volumes, higher traffic from urban growth, or new demands for climate-resilient routes.
The reforms should simplify applications, clarify responsibilities, and help secure funding that reflects actual road use.
A key feature is a new Self-Assessment Tool and data portal, being developed to help councils determine when a road’s function no longer matches its classification as State, Regional or Local.
The tools will provide consistent criteria and a more transparent basis for proposals, reducing uncertainty and streamlining the process.
“This new approach will give councils greater clarity, speed up decisions and ensure roads are categorised based on how they are actually used, not on outdated reviews or political deals,” said Minister for Roads Jenny Aitchison.
Councils were consulted earlier this year, with 57 submissions received from local government and industry stakeholders. Feedback strongly supported a system that was more open, fair and predictable.
The reform comes after the previous government’s 2019 commitment to reclassify up to 15,000 kilometres of regional roads failed to deliver results.
Under the NSW Government’s approach, responsibility for funding and ongoing maintenance is expected to be more clearly defined, reducing the burden of uncertainty for local government.
Aitchison said the changes respond to pressures councils are already managing.
“With increased populations in regional communities, increasing freight tasks on the regional network and changes to resilient routes to deal with climate change, we need a dynamic, transparent approach to applying for recategorisation that quickly becomes straightforward and business as usual,” she said.
The new framework will be delivered within existing Transport for NSW budgets. Rollout is expected in the coming months, with councils to be kept informed as the process and online portal go live.





