Transport Costs Cut Aussie Household Spending

Household spending fell 1.1 per cent in April 2026, according to seasonally adjusted figures released today by the Australian Bureau of Statistics (ABS).

This follows a rise of 1.6 per cent in March and a rise of 0.3 per cent in February.

Tom Lay, ABS head of business statistics, said: 'The 4.7 per cent drop in transport costs was the main driver for the 1.1 per cent fall in household spending in April.

'Annual household spending was up 4.9 per cent compared to April 2025, slowing from the 6.2 per cent annual rise in March.'

The fall in transport spending reflected widespread impacts and responses to the conflict in the Middle East. Air transport was the largest contributor to the decline, as households scaled back travel in response to broader uncertainties and higher airfares.

Higher jet fuel costs also added to the fall in transport spending, as airlines cancelled routes during the month to keep services viable. The resulting refunds are recorded as a reduction in Air Transport.

Fuel spending remained elevated compared to before the Middle East conflict but eased in comparison to March. This was supported by the Federal Government halving the fuel excise duty in response to rising fuel prices, which took place from 1 April.

Experimental data produced by the ABS suggests that the volume of fuel spending increased by 2.0% in April, following a 1.5% fall in March.

'The fuel excise discount provided some immediate relief to household budgets. We also saw spending on public transport ease in states offering free travel, particularly Victoria and Tasmania,' Mr Lay said.

A rise in new vehicle sales provided a partial offset to the broader transport decline. Electric vehicle (EV) sales, which have been trending higher over the last year, increased significantly in April as EVs accounted for a growing share of overall new vehicles sales. This points to a shift in consumer behaviour as households adjust for rising fuel prices.

'Food spending also fell by 1.3 per cent, reflecting a return to normal levels after the higher purchases we saw in March. The shift towards generic brands and cheaper products in supermarkets continued into April, reflecting ongoing price consciousness among households,' Mr Lay said.