Cost of commuting in Australia skyrockets in last 12 months

Australian motorists have been hit by huge rises in transport costs as the cost of living crisis continues to bite.

According to the Australian Automobile Association’s (AAA) most recent Transport Affordability Index, average motorists were hit with rises that amounted to more than 10.5 per cent in the last 12 months - triple the consumer price index (CPI) 3.8 per cent rise.

The new report now suggests that, on average, the typical Australian household now spends an incredible 17 per cent of its income on transport, up from 15.9 per cent just a year ago.

In the June quarter, the annualised cost of transport for a typical household in an Australian capital city rose by $141 to $25,572. That translates to a 0.6 per cent increase, less than the quarter’s 1.0 per cent CPI rise – although that figure could be misleading as it includes Hobart's numbers where the city slashed the price of public transport by half.

With Hobart out of the picture, the average quarterly rise in transport costs was 0.9 per cent, while the national rise matched the CPI with a 1.0 per cent increase.

Some of the unsustainable rising costs in Australia's capitals included a whopping $88 rise in car loan repayments, a $54 rise in comprehensive car insurance, and a $72 rise on fuel spending.

Speaking of which, the average Aussie family now spends more than $100-a-week on fuel with Brisbane residents now spending an average of $103.60 at their local servo every seven days.

Annual transport costs for the average regional household, meanwhile, rose by $261 to $21,901 a year.

The average regional fuel spend is now $103.06 per week, although residents of Bunbury, Western Australia, pay as much as $120.50 weekly.

When it comes public transport Brisbane is easily the most expensive city to get around without a car, costing inhabitants as much as $59.67 for seven days of travel, up from the capital city average of $39.35.

Brisbane also joins Melbourne for the two most expensive cities when it comes to tolls, with both costing the average motorist more than $61 a week, compared to Sydney that charges an average of $44.58.

Calling governments to do their bit for the cost of living crisis, AAA boss Michael Bradley said:

"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.

"Transport is a significant and unavoidable expense for households, and it is also one of the key drivers of general inflation. Governments at all levels must consider these cost pressures when formulating policy."

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