In the three states, real tolls are used for highway PPP projects. While governments may propose either a lump sum or an annual contribution to the contractor in their request for proposals, respondents (bidders) have typically proposed the elimination or reduction of these contributions by government in their proposals. In New South Wales, the government now typically specifies the initial toll rate and uses indexing techniques for escalation. In Victoria and Queensland, the initial toll rate is typically a bid variable, but the government sets the tolling structure over time.