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Blairgowrie Identified as Melbourne Suburb with Highest Work-Related Car Expense Claims

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Car Expense Claims in Melbourne Suburbs

Analysis of taxation data by KPMG has identified Blairgowrie as the Greater Melbourne suburb where residents claim the highest average work-related car expenses.

Key Findings Across Melbourne

The data reveals clusters of above-average tax claims in several affluent areas. These include bayside suburbs such as Brighton, Toorak, and Middle Park, eastern inner-city suburbs like Albert Park and Malvern, and outer suburbs on the Mornington Peninsula and in the Yarra Valley.

KPMG urban economist Terry Rawnsley indicated that this pattern aligns with geographical and socio-economic factors.

"Wealthier residents often choose areas prioritizing space and lifestyle, which may have fewer public transport options. Even in affluent suburbs with public transport, higher incomes enable residents to opt for car travel over public transit."

Blairgowrie Specifics: A Deep Dive

In Blairgowrie, located on the Mornington Peninsula, 17 percent of local taxpayers report work-related car expenses. These motorists claim approximately $500 more, on average, than those in postcode 3206, which covers Albert Park and Middle Park, the second-highest area for deductions.

Rawnsley also highlighted that the occupational mix is a significant factor. Locations with a larger share of professionals who frequently travel for work tend to show higher claims.

Daryl Ferguson, a Blairgowrie cafe owner and resident of 25 years, suggested that the suburb represents the maximum distance city workers might live while prioritizing lifestyle.

"Driving into the CBD for work is prohibitively draining, and driving is considered the only feasible transport option."

He also noted that the area experiences significant traffic congestion during summer due to limited road access.

Public transport in Blairgowrie consists of a local bus service connecting it to the broader Mornington Peninsula and, eventually, to inner Melbourne via Frankston train station. The train station is approximately an hour's drive and about 1½ hours by bus.

Another local business owner, who requested anonymity, cited limited job opportunities and infrastructure in Blairgowrie as factors compelling residents to travel for work. Some individuals reportedly maintain two homes, splitting their time between Melbourne and Blairgowrie, often in executive-type roles that may incorporate travel.

Demographics and Property Landscape

According to the 2021 Census, about a quarter of Blairgowrie's working population identified as "professionals," with an additional 20 percent categorizing themselves as "managers," which is six percent higher than the state average. The median age in Blairgowrie is 58, as per the Australian Bureau of Statistics.

Property data from Domain indicated that Blairgowrie experienced the most significant five-year house price increase in Greater Melbourne by 2024, rising 64 percent to a median of $1.55 million, before a subsequent slump of almost 16 percent the following year.

Contrasting Areas: Inner North Melbourne

In contrast, residents of Melbourne's inner north, including Brunswick East and North Melbourne, reported among the lowest average work-related car expenses in Greater Melbourne. This finding, based on taxation data from the 2022-23 financial year, aligns with these areas being well-serviced by public transport, as noted by Rawnsley.