It’s no secret that owning a car in 2025 is expensive. But if you live in Sydney, you could be paying the highest ownership fees.
There’s no denying that owning a car in 2025 is expensive. While retail prices on new models are becoming competitive once again, a surge in fuel prices, insurance costs, and everything in between is causing some Australians to feel the financial pinch.
But have you ever thought about how where you live could impact your car bill? If you haven’t, you’re not alone.
RELATED: Price of driving: Transport costs are up, but there’s a silver lining – for now
According to a new report published by the Australian Automobile Association (AAA) – the peak industry body – Sydney took home the unenviable crown as the city where it’s most expensive to own a car.
Based on the AAA’s latest data, the average Sydney household spends 15.4 per cent of its yearly income on transport alone. But how does it compare with the rest of Australia’s capital cities? Drive finds out.
Total ownership costs
Generally speaking, vehicle costs in Australia have increased slightly over the past year.
According to the latest Consumer Price Index – which measures the average change in prices paid by consumers across different categories – the transport category was one of the highest-rising, rising by 2.7 per cent in the year to October.
The data, gathered by the Australian Bureau of Statistics (ABS), revealed that rising costs across different transport categories, such as maintenance and repairs (up 5 per cent), and a further 5.8 per cent rise in “other services in respect of motor vehicles”.
On a capital city basis, Sydney recorded some of the highest transport fees across the country.
The AAA’s latest Transport Affordability Index measures the average costs of various transport categories across capital cities and regional centres, Sydney ranked as the highest capital city for travel.
The AAA data compares prices for car insurance, fuel, public transport, tolls, servicing and registration – and showed the average Sydney household spent an average of $565 a week on transport, equating to $29,394 a year.
How much does car insurance cost in Sydney?
Sydney motorists are paying the second-highest insurance premium per annum at $3282, the index showed, slightly behind Melburnians ($3500).
As reported by Drive in September 2025, Victoria recorded the highest combined annual total in car theft claims in the past financial year, further adding to the high insurance costs Melbourne motorists are paying.
According to the Insurance Council of Australia (ICA) – the national insurance body – Victoria recorded a 59 per cent increase in claims in the 12 months leading up to June 2025, with a further 70 per cent increase in incurred costs.
The Garden State totalled a whopping $223 million in motor vehicle theft claims, with Metro Victoria identified as the top hotspot for car thefts, recording the largest increase of claims and costs by 70 and 80 per cent, respectively.
However, New South Wales (including metro and regional areas) ranked second, spending a cumulative total of $100 million in car theft claims in the past financial year.
Car registration, CTP and licensing
Though car registration, CTP, and licensing fees aren’t weekly costs, they can still add up over the year. And though car ownership fees are generally the highest in Canberra ($2356 per year on average), they are also some of the highest in Sydney.
On average, households in Sydney spend $2187 per annum on these ownership costs, while Perth residents are also among the most affected, spending an average of $2025 per year.
Melbourne drivers paid slightly less per year ($1910), while motorists in Brisbane ranked fourth-highest ($1731) among the cities measured.
Though it’s worth noting, these ownership costs recorded in the report could be influenced by NSW having the highest number of registered vehicles – including private vehicles, buses, and trucks – among all Australian states and territories.
As previously reported by Drive, as of January 2024, 6.29 million vehicles were registered in NSW, outsizing its next-closest rival, Victoria (5.51 million).
How much does petrol cost in Sydney?
Based on the latest CPI data, petrol prices have increased by 1.9 per cent in the 12 months to October, though they were down by 0.9 per cent for the month.
Generally speaking, Sydney and overall NSW motorists are paying some of the highest petrol prices in the country. Based on the AAA data, Sydney motorists, on average, are paying the second-highest fuel costs at $4847 per year.
On a national scale, a 2024 report by the Australian Institute of Petroleum (AIP) – a national representative body – found NSW drivers paid the third-highest average at 190c/L, slightly behind Queensland (192c/L) and well below the Northern Territory (197c/L).
Tolls
Additionally, toll costs are highest in Sydney, with a local driver spending an average of $60 per week on tolls, totalling $ 3120 per annum, according to the latest AAA data.
Further making matters worse is the fact that NSW’s capital has the highest number of tolled roads in the country.
According to a 2024 independent Toll Review report commissioned by the NSW state government, of Sydney’s 320km motorway network, 37.5 per cent (120km) is tolled.
In the report, researchers explained the complex ownership of tollways in NSW, which involves various other ‘concessionaires’, companies that purchase ownership stakes on a specific arterial.
Global road toll conglomerate Transburban owns and operates 11 toll roads in Sydney, generating $302 million from its Australian network in the past financial year.
According to its 2024-2025 Financial Year report, Transurban stated that Sydney’s “toll revenue contribution” sat at 49.5 per cent – or approximately $149 million – last year.
For comparison, Transurban’s Melbourne toll network contributed 26 per cent in revenue, while the company’s Brisbane footprint added a further 16 per cent.
Brisbane wasn’t too far behind Sydney in terms of toll fees, with motorists in the Sunshine State’s capital spending $1352 per year on tolls (up $35 year-on-year). For reference, the average Melbourne household spends $1343 on tolls per year.
Public transport
While Sydney takes home the unenviable crown as the most expensive state to own a car, it’s worth noting the capital city also has some of the highest public transport fees recorded by the AAA.
Though Melburnians are typically spending the most fares on public transport ($2860 per annum), Sydney locals weren’t too far behind, with the average household spending $2600 per year catching trains and buses. Perth ranked third ($2433), followed by Adelaide ($2366) and Canberra ($1381).
It’s worth noting that some states, such as Queensland, have permanently reduced public transport costs to not only ease congestion but also lower travel costs.
According to a February 2025 9 News report, the initial six-month trial – which reduced public transport fees to 50c in Queensland – saved residents $180 million in fares.
Despite various state and territory governments providing transport relief, the AAA’s managing director, Michael Bradley, said it’s still not enough.
“Transport still consumes a significantly larger portion of household incomes than it did five years ago,” Bradley said in a media statement.
“Transport is a significant and unavoidable expense. Governments of all levels must consider these cost pressures when formulating policy.”
The post ‘Significant and unavoidable’: The Australian state where your car is bleeding your wallet dry appeared first on Drive.
