Transport prices push up cost of living

SEPTEMBER is shaping as a watershed month for cost-of-living pressures in Australia as the 50 per cent temporary cut to the fuel excise comes to an end.

 

Australia’s peak motoring body, the Australian Automobile Association (AAA), has today issued its latest quarterly Transport Affordability Index showing average weekly fuel costs rose more than five per cent to $100.39 a week across the country in the past three months.

 

The latest results include the temporary halving of the fuel excise rate, inflation at 6.1 per cent and the impact of global price shocks flowing from Russia’s invasion of Ukraine.

 

Data from the report shows the typical weekly household transport cost in capital cities is now $412.21 and $342.98 in regional households.

 

AAA managing director Michael Bradley said: “Despite the temporary excise cut, fuel prices are rising and continue to be a significant contributor to cost of living pressures across both regional and metropolitan Australia.”

 

“This is the first time the national weekly average spent on fuel has passed $100 since the index’s inception in 2016.”

 

“In capital cities, fuel costs are now an average of $98.37 per week with Hobart ($102.63 p/w), Darwin ($99.84 p/w), Sydney ($99.13 p/w), Canberra ($98.92 p/w), Brisbane ($98.15 p/w) and Melbourne ($97.29 p/w) the most expensive cities.”

 

“Regionally costs are more expensive at $102.71 per week with Bunbury ($122.70 p/w), Geelong ($118.31 p/w) and Launceston ($114.67 p/w) the highest.”

 

After declining in the previous quarter, car loan repayments have risen again due to higher vehicle prices and higher interest rates on loans.

 

Sydney remains Australia’s most expensive capital city for transport costs averaging $486.18 per week, followed by Melbourne ($461.01 p/w) and Brisbane ($454.52 p/w).

 

Alice Springs is Australia’s most expensive regional city at $370.59 per week followed by Bunbury ($362.85 p/w) and Geelong ($361.53 p/w).

 

Nationally, transport costs represent 15.2 per cent of household income.

 

The Tasmanian cities of Launceston (18.6%) and Hobart (18.2%), followed by Brisbane (17.4%) had the highest transport costs as a proportion of household income.

 

In the June quarter, the typical Australian city household’s average annualised cost of transport increased by $581 to $21,435.

 

Transport taxes – in the form of fuel excise, registration, compulsory third party (CTP) insurance and licensing – cost the typical two-car family $2154 annually, reflecting the $581 decrease in fuel excise costs arising from the temporary cut.

 

The increase in transport costs over the quarter was driven by changes in these cost categories:

 

• Car loan payments – the average upfront cost for purchasing new cars and interest rates of new car loans increased in all locations.

• Registration, CTP and licencing – costs increased slightly in New South Wales and South Australia.

• Comprehensive insurance – premiums increased in all locations except some in Western Australia and Tasmania.

• Car maintenance – costs increased slightly in all locations says the AAA.

• Fuel prices increased considerably in all locations.

• Toll roads – toll road costs increased for Sydney and Melbourne due to scheduled indexation from 1 April 2022.

 

Public transport costs remained unchanged over the quarter.