When you live in Australia, a car is a crucial aspect of many households.
Sure, inner-city residents with access to public transport could get through the working week relying on buses, trams, or trains. But despite authorities trying to get drivers off the road through public transport and cycling initiatives, it’s still not enough.
MORE: ‘Turbocharge’: Why Aussies will become more car dependent than ever before
A new report from novated leasing provider Paywise – sent exclusively to Drive – analysed 185 Local Government Areas (LGAs) on four metrics: running costs, public transport, walkability, and fuel stations. The company then calculated costs and aggregated car dependency scores.
In metropolitan areas, Frankston, southeast of Melbourne, ranked first among all LGAs analysed in the report with a car dependency score of 90.68 out of 100.
On average, residents spend $13,000 per year on running costs, equating to 12.9 per cent of the median household income.
Knox in Melbourne’s east ranked second with a 90.34 rating, with the average resident paying approximately $14,068 per year on running costs. For reference, the average Knox household pays about 12.3 per cent of its yearly income on running costs.
As reported by Drive in August 2026, experts forecast Australia is heading into its most car-dependent era in history, driven by a population boom led by Millennials.
MORE: Got questions? Ask a Drive expert (not an AI agent) here
According to Melbourne-based demographer Simon Kuestenmacher, as more Millennials have children, they are then forced into outer areas in order to buy a larger home. As public transport is scarce in these areas, they will become more car-dependent.
“Because the Millennial generation is so big, by far the biggest generation in Victoria, you push that whole generation from the one-car stage to the multiple-cars-per-household stage; this turbocharges car ownership in Victoria,” Kuestenmacher previously told Drive.
“All the while, the Baby Boomer cohort for the next little while are still too young and too healthy to give up driving. They will eventually give up driving but not this decade. For the next decade, absolutely everything pushes more people on the road.”
Cockburn in Perth’s south ranked third with a car dependency score of 90.22. Drivers spent $10,995 on running costs per annum.
According to the novated leasing body, 24 to 27 per cent of households in these three suburbs are within 400 metres of a frequent public transport stop. For reference, the average across metro-developed areas is 60 per cent.
In outer metropolitan LGAs, Mundaring in Western Australia was the most car-dependent council identified in the Paywise report.
On average, drivers in this council are spending $12,926 on running costs per year, while only 2.6 per cent of households are within 400 meters of a frequent public transport stop.
Hawkesbury in NSW’s outer northwest ranked second at 87.00 out of 100.
According to the novated leasing body’s data, less than 5 per cent of homes in the council area are within 400m of reliable public transport, and Hawkesbury also has few connected streets, making it harder to travel on foot.
On a per annum basis, Hawkesbury residents spent an average of $17,645 on running costs, approximately 14.5 per cent of a median household’s income.
Hawkesbury recorded the highest running costs among the councils analysed by the novated leasing body.
Serpentine-Jarrahdale in WA’s outer south-east ranked third in outer metro areas, with residents spending $13,420 on running costs per year.
Additionally, the LGA also recorded the highest average number of vehicles among the 185 councils analysed, with the average household having 2.32 cars.
In major regional cities, Mackay in Queensland’s east topped the list as the most car-dependent LGA, scoring 90.68. Drivers in this municipality spent $9988 on running costs per year, approximately 8.9 per cent of the local median household income.
Approximately 1.1 per cent of Mackay households are within 400m of a reliable public transport stop, while the average home has 1.97 vehicles per dwelling.
Bundaberg in Queensland finished second, scoring 75.92, with residents spending an average of $9216 in yearly running costs, equating to an estimated 13.1 per cent of the average household’s income.
Also in Queensland, Toowoomba was the third most car-dependent regional city, with the average household paying approximately 10.6 per cent – or $9406 – of their yearly income on running costs.
Chief executive officer of Paywise Frank Agostino said running costs had a large impact on cost-of-living pressures for many households.
“What stood out to us is how much running a vehicle can weigh on a household budget,” Agostino said in a media statement.
“A household in East Gippsland running the local average number of vehicles would spend approximately 17.8 per cent of the local median household income on running costs.
“If you live somewhere without real alternatives, driving less may not be an option, so it’s worth looking at how you pay for your vehicle instead,” he said.
The post The most car-dependent suburbs in Australia appeared first on Drive.