A recent report by the Australian Automobile Association (AAA) has unveiled that Australian transport costs have seen a decrease in affordability, with Wagga Wagga, New South Wales, being the most affordable and Launceston, Tasmania, the most expensive in terms of transport expenses.
The Transport Affordability Index (TFI) tracks changes in household transport costs relative to the Consumer Price Index (CPI) and household incomes, indicating a decline in nationwide transport affordability during the first quarter of 2025.
Despite a decrease in transport costs for the third consecutive quarter, Australian households still spend an average of 15.8% of their income on transportation, with variations observed between capital cities and regional areas.
AAA’s managing director, Michael Bradley, highlighted the significant rise in transport costs post-pandemic, emphasizing the impact of transport expenses on inflation and the necessity for policy considerations at all government levels.
Regional disparities in transport affordability were evident, with Tasmania’s Hobart and Launceston households spending the highest percentage of their incomes on transport, while Brisbane experienced a more modest 14.6% expense rate.
Wagga Wagga emerged as the city with the most affordable transport, surpassing even Brisbane, attributing its improved affordability to increased household incomes offsetting rising fuel and vehicle prices.
The AAA report noted a rise in fuel prices leading to an annual increase in transport costs for both capital city and regional households, partially mitigated by reduced interest rates on new vehicle purchases.
The transport affordability index provides valuable insights into the economic impact of transportation costs on Australian households, urging a holistic approach to address the rising financial burden of transportation.
As the nation grapples with fluctuating transport expenses, policymakers and industry stakeholders must collaborate to ensure sustainable and equitable transportation solutions for all Australians.
With ongoing economic shifts and evolving consumer behaviors, understanding and addressing transport affordability issues are crucial for fostering a resilient and inclusive society.
As Australia navigates the complexities of its transport landscape, the need for proactive measures to enhance affordability and accessibility remains paramount in shaping a more sustainable future.
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