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DRIVERAnd the winner is…Mark Stockdale compares our motoring costs with the neighbours’KIWIS RETURNING FROMAustralia often marvel atthe low price of fuel there.While it’s true that petrol,at least, costs more in New Zealand– due to a combination of higher fueltaxes and a lower exchange rate –the AA’s analysis of vehicle runningcosts shows that, overall, it costsmore to own a car in Australia thanin New Zealand.We’ve focussed on the typical dayto-daycosts, comparing fuel costs,annual licensing, vehicle insuranceand servicing costs, using AA Clubdata from each jurisdiction basedon a typical compact, near-new car.We’ve excluded finance, interestHow do our motoring costs compare?New Zealand Australia (QLD) Australia (VIC)Annual vehicle licence 1 – petrol $288 $789 $849Annual vehicle licence 1 – diesel $418 $789 $849Insurance – vehicle only 2 $750 $904 $884Annual servicing (R&M, tyres, oil) $937 $1,403 $1,417Annual petrol costs 3,4,5 $1,882 $2,000 $2,000Annual diesel costs 3,4,5 $1,036 $1,668 $1,668Diesel Road User Charges 3 $636 n/a n/aTOTAL petrol $3,857 $5,096 $5,150TOTAL diesel $3,777 $4,764 $4,818NOTES: Costs calculated based on a compact car (up to 2 litres), and rounded. All Australian costs converted to NZ$ at an exchange rate of 82c1. Includes compulsory third party (injury) insurance (ACC in NZ)2. Club insurance; comprehensive cover with no claims bonus (new car)3. Annual mileage: 12,000km (NZ); 15,000km (Aus)4. Fuel consumption: petrol 7.54 litres/100km; diesel 6.08 l/100km5. Petrol = NZ$2.08/litre, A$1.45/litre; diesel = NZ$1.42/litre, A$1.50/litre. Source: AA PetrolWatch, AAAWhat our licence fees pay forPetrol car (excl. ute or van)Diesel car (excl. ute or van)ACC levy $198.46 ACC levy $311.38National Land Transport Fund $43.50 National Land Transport Fund $43.50Safety standards levy $1.64 Safety standards levy $1.64Admin & licence label $6.62 Admin & licence label $6.62GST $37.53 GST $54.47Total: $287.75 Total: $417.61Fuel tax comparisonNZ c/litre (petrol only*)Australia c/litre (petrol & diesel)National Land Transport Fund 53.524 Commonwealth excise 38.143ACC 9.9Fuel Monitoring Levy 0.045Local Authorities Fuel Tax 0.66Total excise 64.129 Total excise 38.143GST ($2.08 at 15%) 27.13 GST ($1.45 at 10%) 13.18TOTAL TAX 91.26 TOTAL TAX (A$) 51.32* As from 1 July, 2013. Diesel in NZ incurs the Fuel Monitoring Levy (0.045c/litre), Local Authorities Fuel Tax (0.33c/litre), plus GST, totalling18.89c/litre at a retail price of $1.42/litre; the National Land Transport Fund levy is collected from diesel RUC of $53 per 1,000km for a light vehicle.and depreciation, as these varyaccording to vehicle age and value.Data shows that the average Kiwimotorist travels 12,000km a year.Australian motorists typically travel15,000km a year; their fuel costs reflectthe higher annual mileage. Dieselpump prices are much higher inAustralia because it includes excise,whereas in New Zealand this isa separate Road User Charge.All Australian costs have beenconverted into New Zealand dollarsusing an exchange rate of NZ$0.82.What does the comparison tell us?It shows that while our fuel costs areoften perceived as high, they aremore than offset by lower costs, likethe annual vehicle licence, whichis amongst the lowest in the world.The Australian motoring costsare mostly inflated by the annuallicence fees which, like New Zealand,includes compulsory third-partyinjury insurance. Although someACC levies are collected in petroltax, New Zealand’s compulsory injuryinsurance fees are much lower thanAustralia because of the economies ofscale of our State-run, no-fault ACCscheme, which averages costs acrossall drivers, helping keep levies low.Australian motoring costs are $1300more a year than in New Zealand.But the average Australian full-timeincome is higher than ours. If wecompare costs (in domestic currency)as a percentage of average income,then the cost of running a typicalpetrol car is higher in New Zealandat 7.2% of income, whereas inAustralia it's 5.5%. So, while higherincome levels in Australia meanthose earning a full wage or salaryare better able to afford the country’shigher motoring costs, if you are ona low or fixed income, then it ischeaper to own a car here. ←www.aadirections.co.nz 39