Imagine a tranquil coastal haven, a dream for retirees and holidaymakers, yet it harbors a surprising secret: its residents are shelling out more on work-related driving than anyone else in the sprawling Melbourne metropolitan area! This isn't just a hunch; it's a revelation from KPMG's deep dive into tax data, pinpointing the suburbs where Melburnians are claiming the highest average expenses for using their cars for their jobs.
The analysis paints a clear picture, showing spikes in above-average tax claims concentrated in two main areas: the ritzy bayside suburbs and some eastern inner-city enclaves like Albert Park and Malvern. Interestingly, these patterns also extend to the more distant outer suburbs on the Mornington Peninsula and within the Yarra Valley.
According to KPMG urban economist Terry Rawnsley, this isn't random. He explains that there's a distinct geographical and socio-economic thread running through this data. Wealthier individuals often gravitate towards areas that offer more space and a desirable lifestyle, which, by their nature, tend to be less connected by public transport. "While some affluent suburbs, like Brighton, Toorak, and Middle Park, do have public transport options, residents with higher incomes can comfortably choose to travel by car instead of relying on public transport," Rawnsley notes.
But here's where it gets particularly interesting: Take Blairgowrie, a suburb on the Mornington Peninsula. While only a modest 17% of its taxpayers claim work-related car expenses, those who do claim an average of $500 more than those in the postcode with the second-highest deductions, which happens to be 3206 (covering Albert Park and Middle Park).
Rawnsley points out another crucial element: the occupational mix. "Some locations may have a larger share of workers, such as professionals, who often travel for work, compared to other locations that may have a greater share of workers, such as teachers, who travel less for work purposes."
Daryl Ferguson, who has owned a cafe in Blairgowrie for 25 years, believes his suburb might represent the furthest point Melburnians are willing to live from the city for that coveted lifestyle. He himself tried commuting to the CBD daily for work years ago, only to find it overwhelmingly exhausting. "Driving is certainly the only form of considered transport," Ferguson states, highlighting the summer traffic woes: "Over the summer period, it is overloaded with traffic because there is only one little road in, and one out. So it’s pretty difficult, that’s that’s for sure."
Public transport in Blairgowrie primarily consists of a local bus service that connects residents to the wider Mornington Peninsula, eventually linking to the Frankston train station for access to inner Melbourne. This train station is about an hour's drive away, or a 1.5-hour bus journey.
Another local business owner, who preferred to remain anonymous in the close-knit community, shared that limited job opportunities and infrastructure in Blairgowrie necessitate travel for many. Some residents even maintain two homes, splitting their time between Melbourne and Blairgowrie. "They’ve probably got more [an] executive-type job, so they might incorporate their travel into that," she suggests. "It’s quite a higher socioeconomic demographic and people."
Reflecting this demographic, the 2021 Census revealed that about a quarter of Blairgowrie's working population identified as "professionals," with another 20% identifying as "managers" – a figure 6% higher than the state average. The median age in Blairgowrie is a mature 58, according to the Australian Bureau of Statistics.
And this is the part most people miss... While Blairgowrie has seen significant property value growth, with a remarkable 64% increase in house prices over five years to a median of $1.55 million as of 2024 (according to Domain), it's worth noting that prices in Blairgowrie actually dipped by nearly 16% the following year.
Now, let's flip the coin. In stark contrast, residents in Melbourne's inner north, such as Brunswick East and North Melbourne, rely far less on cars for their work commutes. Taxation data from the 2022-23 financial year shows these areas recording some of the lowest average work-related car expenses in Greater Melbourne. Rawnsley attributes this to these suburbs being exceptionally well-served by public transport.
So, what do you think? Does the data surprise you? Are these high car expenses in suburbs like Blairgowrie a fair reflection of lifestyle choices and professional needs, or do you believe there's a more efficient way for people to manage their work-related travel? Share your thoughts in the comments below – we'd love to hear your perspective!
