The latest AAA Transport Affordability Index shows that in the 2023-24 financial year, for the typical Australian household rose at a higher rate than general inflation.
Over the 12 months to 30 June 2024, transport costs rose by 10.5 per cent. This was almost triple the CPI increase of 3.8 per cent over the same period.
The report shows that in the June 2024 quarter the typical Australian household spent 17 per cent of its income on transport, up from 15.9 per cent 12 months previously.
In the June quarter, the typical Australian capital city household's annualised cost of transport rose by $141 to $25,572. This 0.6 per cent increase was less than the quarter's 1.0 per cent CPI rise. But this is a one-off fluctuation after the Tasmanian Government halved Hobart's public transport fares on 1 June. This reduced transport cost inflation figures for Hobart, the capital city average, and the national average.
Hobart was the only capital where typical total transport costs fell. When Hobart is excluded, the average quarterly rise in capital city transport costs was 0.9 per cent and the national rise was 1.0 per cent, in line with CPI. Across the country, both transport cost inflation and general inflation remain too high for comfort.
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 typical Australian capital city household's average weekly fuel expenditure rose above $100.
The Transport Affordability Index also tracks costs in one regional centre in each state and the Northern Territory. The national benchmark regional household's annualised transport costs rose $261 from the previous quarter - up 1.2 per cent - to reach $21,901. This was higher than the typical capital city household's costs rise and more than the 1.0 per cent CPI increase.
As in the capitals, the bulk of cost rises came from higher car loan repayments, comprehensive insurance premiums, and net fuel expenditure - annualised rises of $90, $75 and $78, respectively.
"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," AAA Managing Director Michael Bradley 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."
