Public transport spending across capital cities has dropped slightly over the quarter, despite overall transport costs rising 10.5 percent across the board in the 12 months to 30 June.
The latest Australian Automobile Association’s (AAA) transport affordability index has revealed Australians are being forced to spend more of their income on transport, with spending on driving, petrol, and tolls growing at almost three times the rate of inflation.
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The typical Australian household spent 17 percent of its income on transport in the year to 30 June, up from 15.9 percent the previous year, with the typical capital city household’s annualised cost of transport rising by $141 to $25,572, the AAA research found.
The index based its household model on a male, 36, and a 38-year-old female working full-time and commuting to their nearest CBD, providing for children living in a detached dwelling, with comprehensively insured cars.
Despite the overall increase, public transport spending across capital cities dropped slightly over the quarter, almost entirely driven by the Tasmanian government’s fare reductions changes for Hobart. All other capitals fares were unchanged in the quarter.
During the initiative – running from 1 June 2024 to 30 June 2025 – public transport bus and ferry fares in Hobart will be halved. This reduction applies to all public buses and fare-paying school buses, as well as the River Derwent ferry service. It applies to every fare type (non-urban, urban, concession and child/student fares).
Brisbane households spent the most of any capital city on public transport, with a weekly average of $59.67, while Melbourne households spent the second most on public transport, with a weekly average spend of $53, Sydney spending $50 and Perth at fourth with $45.90.
However, the data for the quarter does not take into consideration the Queensland government’s 50c fare cap that has just come into effect. It is set to dramatically decrease the cost of commuting as the government hopes to increase patronage in cities such as Brisbane.
If other major cities adopt similar cost-of-living initiatives across its respective public transport systems, there could be an overall drop in transport spending for Australians.
“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 says.
“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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