Melburnians forking out $20K a year on travel costs

Melbourne families are forking out almost $400 a week, or more than $20,000 a year, on transport costs according to a report released by the Australian Automobile Association (AAA), of which RACV is a member.

AAA’s Transport Affordability Index, which measures household transport costs in all capital and regional cities, found that Melbourne is Australia’s second most expensive city behind Sydney when it comes to getting from A to B.

The report also highlighted:

  • Melburnians are putting away 15.2 per cent of their annual pay check for transport costs
  • Melbourne is still the most expensive city in the country for car loan payments and comprehensive insurance at $133.47 per week
  • Geelong is Australia’s second highest regional city with a yearly expense of $15,851 on transport costs.

RACV General Manager Public Policy Bryce Prosser said while transport is an unavoidable cost, there are many ways Victorian families can save on the hip pocket.

"One way to reduce transport expenses is to be savvy with petrol prices. This means to top-up when the fuel price cycle is at the highest, then fill up your tank when prices drop. By following this simple practice, households can save several hundred dollars a year on their petrol bill.”

“Prices have been increasing year on year for the typical Victorian household by an extra $12.66 a week. This is a heavy burden for Victorian families and these cost pressures need to be considered when governments are formulating policy,” said Mr Prosser.

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Written by RACV Corporate Communications (03) 9790 2572
November 25, 2019