A large number of Australians are paying more than $460 a week to get around. New research from the Australia Automobile Association (AAA) shows that transport costs are making a big dent in household budgets, as Aussies are on average paying $44 more a week now than they were at the start of the year.
The head of the AAA, Michael Bradley, says the costs have jumped sharply since the start of 2021 and that more needs to be done to help ease the pressure on households. “This sharp rise in transport costs needs to be monitored by governments, which need to avoid policies and decisions that impact the cost of living,” says Mr. Bradley.
“Transport affordability needs to remain a priority for the 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.”
Sydney is the most expensive capital city for transport costs, with residents paying $461.57 a week or more than $24,000 a year. This includes costs such as car loan repayments, tolls, fuel, public transport, insurance, registration, servicing, and roadside assistance.
The next most expensive city for transport is Melbourne at $434. This is followed by Brisbane ($428), Perth ($377), Canberra ($368), Adelaide ($355), Darwin ($342), and Hobart is the cheapest at $335. The national average is $354 a week.
It isn’t all good news for drivers in Hobart. While the weekly costs are the smallest out of any capital city, they represent the most significant proportion of household income out of any capital city at 17.6 percent.
Brisbane residents were the next worst off, followed by Melbourne, Sydney, Perth, Adelaide, Darwin, and Canberra locals handed over the minor proportion of their pay on transport. Unexpected price rises of petrol can have a significant impact on household budgets.
To show just how fragile our petrol price market can be – a week ago, Australians were hit hard by the knock-on effects of the cyber attack on a major US pipeline operator. This caused prices in several major cities to skyrocket, with regular unleaded petrol in Sydney costing $152.50 during the past week.