Typical Australian household transport costs rose by 13% in 2023, far outpacing the year’s consumer price index (CPI) increase of 4.1%.
So says the Australian Automobile Association in its latest transport affordability index.
The report shows in 2023 transport expenditure rose by 12.4%t for the typical capital city household and 13.7% for the typical regional household.
Transport cost rises eased towards the end of the year, the AAA says.
“In the December 2023 quarter, the typical Australian household’s transport costs rose by 0.7% (0.6% for the typical capital city household and 0.8% for the typical regional household)” – about in line with the quarter’s CPI 0.6% increase.
“But larger increases earlier in the year meant that transport affordability declined substantially in 2023,” the AAA says.
“In the December 2022 quarter, the typical capital city household spent 15.6% of its income on transport, but a year later this had risen to 17%.
“Over the same period, the typical regional benchmark centre household’s transport expenditure rose from 14.4% of its income to 15.8%.”
The AAA says the overall rise in transport costs was largely driven by higher up-front costs for purchasing new vehicles, higher interest rates on car loans, and increasing insurance premiums.
“The continuing decline of transport affordability is a heavy burden at a time when Australians are feeling cost-of-living pressures across the board,” says AAA managing director Michael Bradley.
“Transport is a significant and unavoidable expense for households and is also one of the key drivers of general inflation.
“Governments at all levels must consider these cost pressures when formulating policy.”
