Transport costs represent 16% of total household expenditure 

Source: ABS 2004

According to this study the average household spending on transport is higher than the spending on housing or education. Given that the cost of petrol has been increasing considerbly since 2004, the cost of transport as percentage of total household expenditure would have increased even further. 

The operating cost of a medium sized car is around $180 per week or 62 cents per km (source: NRMA). The operating costs of a bicycle suitable for commuting and city riding are minimal and bike parking is free. 

Replacing some of the short trips by bicycle can reduce the cost of

With increasing petrol prices the best way to reduce fuel consumption is to reduce the amount of driving you do.  Replacing short trips with walking or cycling is particularly good as cars are least efficient and most polluting when the engine is cold at the start of trips. Stop-start driving is very fuel inefficient (source: RACV).

If your family has two cars, why not try to just have one car, as you can save around $5,000 a year (depending on the age and cost of the vehicle) by using a combination of cycling, public transport, taxis and car pooling.

Many families are surprised how easy it is to live with one car once they get used to it and by investing the money saved in paying off their mortgage, they can considerably reduce the time it takes to pay off their mortage.