Australians are being forced to spend more of their income on transport, with spending on driving, petrol, tolls and public transport fares growing at almost three times the rate of inflation, new data reveals.
In the 12 months to 30 June, transport costs rose by 10.5% across the board, well above the CPI increase of 3.8% over the same period, the latest Australian Automobile Association’s (AAA) transport affordability index showed.
The typical Australian household spent 17% of its income on transport in the year to 30 June, up from 15.9% the previous year, the index for the June quarter found.
The index based its household model on a male, 36, and a 38-year-old female working full-time and commuting to their nearest CBD, providing for children living in a detached dwelling, with comprehensively insured cars.
In the June quarter, the typical capital city household’s annualised cost of transport rose by $141 to $25,572, the AAA research found.
While this figure represented a 0.6% increase, this was due to the Tasmanian government halving public transport fares from 1 June for Hobart. Excluding Hobart, transport costs for the quarter rose in line with inflation of 1%. This was outstripped by the rise for regional households of 1.2% in the quarter.
Over the quarter, the national average taking in regional and capital city rises was an increase of 0.8%, or $3.79 per week.
Annualised increases across the capitals included car loan repayments, up by $88; comprehensive car insurance, up by $54; and fuel expenditure, up by $72, the AAA said. The typical capital city household’s average weekly fuel expenditure rose above $100.
The index found the average household spends $458.82 per week on transport costs. Car loan repayments represented 46.2% of that figure.
Meanwhile, the average household spends $101.44 on petrol, representing 22.1% of their weekly transport spend.
Insurance costs, servicing and tyres, and registration and licensing represented 9.5%, 7.7% and 7% of weekly spending on transport respectively.
Households in capital cities spent an average of $55.73 on tolls each week.
Melbourne had the highest weekly average spends on toll roads, at $61.40, while Brisbane and Sydney were $61.20 and $44.58 respectively.
Public transport spending across capital cities dropped slightly over the quarter, almost entirely driven by the Tasmanian government’s fare reductions changes for Hobart. All other capitals fares were unchanged in the quarter.
Brisbane households spent the most of any capital city on public transport, with a weekly average of $59.67.
However, the data for the quarter does not take into consideration the Queensland government’s 50c fare cap that has just come into effect. It is set to dramatically decrease the cost of commuting as the government hopes to increase patronage in cities such as Brisbane, which has been found to have Australia’s worst traffic and the 12th worst of any city in the world.
Melbourne households spent the second most on public transport, with a weekly average spend of $53, with Sydney second ($50) and Perth at fourth with $45.90.
The managing director of the AAA, Michael Bradley, said “across the country, both transport cost inflation and general inflation remain too high for comfort”.
“At a time when cost-of-living pressures across the board are hurting most Australians, increased transport cost rises are a major pain point for households and businesses,” he said.
