How much does commuting cost per year in Australia?

A typical Australian commuter spends somewhere between $2,000 and $5,000 a year just on the trip to and from work. Driving 40km a day at 8L/100km and $1.95 a litre is roughly $1,500 in fuel alone, and CBD parking can add $3,000 or more. Public transport for the same commute is often $1,800 to $2,500 a year. Your real cost depends on distance, fuel use, parking and fares.

How can I save money on commuting?

Switching to public transport, carpooling, riding or working from home one or more days a week are the biggest levers. If you drive, a more fuel-efficient car, cheaper parking and using a fuel price app to time fill-ups all help. Many employers also offer salary packaging or transport benefits. Don't forget the hidden costs of car ownership - registration, insurance and depreciation - which often make public transport cheaper than the fuel figure alone suggests.

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Q: Is it cheaper to drive or catch public transport to work?

It depends on your distance, parking costs and local fares. For a typical 40km round trip with $15 a day parking, driving often costs more than $4,000 a year in fuel and parking, while a $9 daily fare comes to about $2,160 a year - so public transport usually wins where parking is expensive. If parking is free or cheap and fares are high, driving can be cheaper. This calculator works out both for your numbers.

Compare the yearly cost of driving versus catching public transport to work in Australia.

Last verified: 5 May 2026

Is it cheaper to drive or catch public transport to work?

Once you count parking, driving to work in a capital city often costs more than public transport. A 40km round trip with $15 a day parking can top $4,000 a year, versus around $2,160 a year on a $9 daily fare. Source: indicative, based on typical Australian fuel and fare costs.

Worked example. 40km round trip, 5 days a week, 48 weeks: fuel at 8L/100km and $1.95/L is about $1,498, plus $15/day parking is $3,600 - so $5,098 a year by car. A $9 daily fare is $2,160 a year, saving roughly $2,938 on public transport.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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Is it cheaper to drive or catch public transport to work?

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