How to swerve surging transport costs

Recently we reported on the Australian Automobile Association (AAA) findings1 that transport costs had risen sharply in the first three months of 2021. In fact, it was the biggest quarterly cost increase recorded since AAA – Australia’s peak motoring body – commenced its Transport Affordability Index in 2016.

Now the Q2 (Apr-Jun) stats are in, and there’s been an increase on an increase.

Here are the latest results2:


14.9% of income

How much the average household spends on transport as a percentage of household income.

Weekly cost

$361 weekly

How much the average household spent on transport. Taken together with the Q1 increase, it’s an extra $50 per week since 2021 began.

The index looks at eight key transport costs: car loans, tolls, fuel, public transport, insurance, servicing and tyres, registration/CTP and licence fees, and roadside assistance.

In both Q1 and Q2, the AAA index found that rising petrol prices were a key contributor to the increase. Fuel and car loan repayments account for the largest cost inputs from the household transport budget.

6 ways we can help you save

SG Fleet can reduce your cost of motoring with novated leasing – a clever way to lower your car expenses and help you save on tax. Here’s how:

  • Car price savings negotiated using our fleet buying power, reducing your amount financed

  • GST savings on the new car purchase

  • Reduced running costs – we act for you to avoid over-servicing and over-charging; and

  • Save the GST on servicing/repairs, insurance, tyres

  • Savings of at least 10% on fuel (GST savings, plus pre-negotiated fuel discounts)

  • Income tax savings – since your car expenses are partly paid from your pre-tax salary, your taxable income is reduced, thus increasing your take-home pay

High five

Plus, with all car costs rolled into one regular payment, it makes managing the household budget a breeze.

There are some certainties in life – like tolls, licence and registration – that we can’t do much about. Public transport is also outside our wheelhouse.

But when it comes to reducing your cost of motoring, we’ve got you.

Want to know more?

Enquire online today or give us a call on 1800 743 262 to speak with one of our consultants.

1. Australian Automobile Association Transport Affordability Index Q1 2021, Released May 2021, and Media Release: Household transport costs surge as families spend more to commute, 24.5.2021
2. Australian Automobile Association Transport Affordability Index Q2 2021, Released August 2021, and Blog: Transport costs at new record high for Australian households, 22.8.2021