Transport costs surge in Australia as families spend more on cars and public transport

Australians are spending $44 more per week on transportation costs in the first three months of 2021 than they were at the end of 2020, according to research compiled by the Australian Automobile Association (AAA).

The AAA’s Transport Affordability Index revealed the average Australian family spent $354 per week on transportation in the first quarter of 2021 – including cars and public transport – representing a 14.3 per cent increase on the previous quarter.

The Index measures a host of factors for the typical Australian two-car household, including car loan repayments, road tolls, fuel, public transport, insurance, registration, roadside assistance and servicing.

Unsurprisingly, Sydney was the most expensive capital city, while also recording the biggest increase, with the average household spending $461.57 per week on transport, an increase of $49.99 per week over the last quarter of 2020.

The typical Melbourne household spends $434.10 per week, an increase of $41.32 over the previous quarter, a trend mirrored in every capital city.

Rural Australian households haven’t been spared either, with transportation costs for a typical two-car household up an average of $44.10 per week compared to the previous three months.

Breaking down areas of expenditure, the average Australian capital city household spends $67.38 per week on fuel, an increase of $5.56. That average spend is slightly more in regional centres ($68.78, up $5.38) while other areas of expenditure are also up.

The total annual cost of transportation in capital cities for a typical two-car family rose by $2308 to $20,172 in the March quarter, with Sydney again seeing the biggest increase ($2600 per annum). Regional families faced a similar increase, up $2293 for a total of $16,412.

And the average taxes paid by Australian motorists in capital cities also increased, up $40 per household in capital cities to $2680 ($1123 fuel excise and $1557 registration, CTP and licensing).

The average household in regional centres paid $2660 in taxes, made up of $1178 in fuel excise and $1482 in registration, CTP and licensing, an increase of $43.

Managing Director of the AAA, Michael Bradley said: “This sharp rise in transport costs needs to be monitored by governments, which need to avoid polices and decisions that impact cost of living.

“Transport affordability needs to remain a priority for government, as Australia has not only just recorded the largest jump in transport costs since the affordability index commenced, but households are now paying the highest proportion of their income toward those costs.”

The research highlights that the cost of transportation rose in almost all jurisdictions and in nearly every category. Car loan repayments and the average cost of new car purchases increased in every jurisdiction in Australia.

New South Wales, West Australia and the Australian Capital Territory recored increases in the cost of registration, CTP third party insurance and licensing while comprehensive car insurance increased in Sydney, Canberra and Wagga Wagga.

The cost of servicing and car maintenance increased slightly around Australia while fuel prices increase considerably nationally.

The cost of using toll roads rose in Sydney and Melbourne, while only roadside assistance and public transport prices remained unchanged.