Transport cost eats 17% or $22,000 of Sydney families’ annual income

Among Australian households, it is residents of Sydney who spend the biggest amount for transportation in dollar terms and as a percentage of household income. On the average, a Sydney family with two vehicles spend an average of $419 weekly for transport.

Computed annually, transport expense is around $22,000 or up to 17 percent of total household income, according to the first national Transport Affordability Index, reports Sydney Morning Herald. The Australian Automobile Association (AAN) commissioned the report for consumers and policy makers to “have a clear picture of exactly how much transport really costs, and how policy decisions at state and federal levels will affect household budgets over time.”

AAA based the index on incomes and transport costs of a typical household in each capital city made up of a couple with children and two cars. The index assumes one of the family member drives to work and the other uses public transport.

It includes other expenses related to transport such as car repayments, tolls, roadside assistance, fuel, transport fare, servicing and tyres, insurance, and registration and licensing, but excludes parking. Of all these expenses, car repayment and tolls were the heaviest expenses.

After Sydney, the second most expensive is Brisbane where the estimated weekly transport cost as of 2^nd quarter 2016 is $375, followed by Melbourne ($349), Perth ($301), Canberra ($300), Darwin ($286), Adelaide ($286) and Hobart ($271), reports ABC.

AAA plus to use the Index to track the changes in cost of transport via analysis of tax, tollways, public transport and finance costs as a proportion of average household income. SGS Economics & Planning developed the index.

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Source: City of Sydney