Australian transport costs are the most affordable in Wagga Wagga, New South Wales, and the most expensive in Launceston, Tasmania, a new report published by the Australian Automobile Association (AAA) has revealed.
And while it may not be apparent to many, according to the AAA’s Transport Affordability Index, the nationwide affordability of transport has fallen again in the first quarter of this year (January to March 2025).
The Transport Affordability Index (TFI) monitors changes in the total price of household transport, and uses economic modelling to determine changes to transport costs relative to the Consumer Price Index (CPI) and household incomes.
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Melbourne trams are a major form of public transport
The study shows Australians are now spending less on transport costs after the third consecutive quarter of reductions – but there are big variations in spending across different parts of the country.
According to the latest TFI stats released this week, the average Australian household spends 15.8 per cent of its income on transport costs.
Capital city households averaged 15.9 per cent, while people in regional cities were marginally better off at 15.6 per cent.
It’s the best affordability since 2020 but means Australians are still spending a higher proportion of their household income on transport than they did before COVID in 2019, when the figure was 13.9 per cent.
“Transport costs are significantly higher than they were before the pandemic,” said AAA managing director Michael Bradley in a statement.
“Costs have risen across the economy and transport expenditure is one of the key drivers of inflation. Transport is a significant and unavoidable expense, and governments at all levels must consider these cost pressures when formulating policy.”
There are also significant variations in affordability across the country.
In Tasmania, households in Hobart and Launceston were found to spend 18.2 per cent and 19.9 per cent of their incomes respectively on transport, the highest in Australia.
In Brisbane – where a flat 50-cent public transport fee was introduced in 2024 as the city’s car parking rates become the most expensive in Australia – the rate is 14.6 per cent.
The Queensland capital fell short of bragging rights for the most affordable transport in the country, however. It was beaten by the NSW regional city of Wagga Wagga.
While the raw spending figure was actually up for the March quarter, the AAA says increases in household income have more than offset that, which is how transport ‘affordability’ has still improved.
According to the report, the increase came from higher fuel prices, with hikes of $129 a year per household in capital cities, and $194 per year for regional city households.
Of course, new vehicle prices increased too, which the AAA says were offset by a fall in interest rates.
