
Australia has over 21 million registered motor vehicles, with 21.2 million registered on 31 January 2023, according to the Bureau of Infrastructure and Transport Research Economics (BITRE). The number of cars per household in Australia is influenced by factors such as age, household type, access to public transport, distance to essential locations, and income. In 2021, 87.6% of Australian households owned at least one car, with 35.1% owning one car, 34.6% owning two, and 17.9% owning three or more. While there is no legal limit to the number of cars one can own in Australia, local council standards and bylaws regarding vehicle storage and property appearance may impose some restrictions.
| Characteristics | Values |
|---|---|
| Number of households owning at least one car | 87.6% |
| Number of households not owning a car | 7.1% |
| Households owning one car | 35.1% |
| Households owning two cars | 34.6% |
| Households owning three or more cars | 17.9% |
| Maximum number of cars that can be sold in a 12-month period in Victoria, NSW, South Australia, Queensland, Western Australia, or the Northern Territory | 4 |
| Maximum number of cars that can be sold in a 12-month period in the ACT or Tasmania | 6 |
| Number of registered motor vehicles in Australia as of January 2023 | 21.2 million |
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What You'll Learn

Car ownership as a socio-economic measure
Car ownership has been considered a census proxy variable for affluence. However, this interpretation is becoming dated as car ownership has become more widespread across society, and the value of cars varies considerably. Nevertheless, car ownership remains a socio-economic measure, impacting the environment and quality of life.
In Australia, car ownership varies according to household type, age structure, access to public transport, distance to shops, services, employment, and education, and household income. In 2021, 87.6% of Australian households owned at least one car, with 35.1% owning one car, 34.6% owning two cars, and 17.9% owning three or more. In comparison, 52.7% of the Australian workforce drove to work by car, while 2.5% walked, and 21% worked from home.
In regional Australia, car ownership is critical for accessing services and employment due to limited public transport options. For example, the Coen Regional Aboriginal Corporation (CRAC) in remote Queensland purchased a bus to provide community transport after census data revealed that many locals did not own a registered motor vehicle, preventing their participation in community programs.
While there is no legal limit to the number of cars one can own in Australia, local councils may intervene if a residentially zoned property resembles a car dealer's yard, claiming a breach of 'unsightly property' bylaws. Additionally, individuals selling more than four cars in any 12-month period in most states or more than six cars in the ACT or Tasmania must obtain a Motor Vehicle Trade licence.
In conclusion, car ownership in Australia is influenced by various socio-economic factors and remains essential for accessing opportunities, particularly in regional areas. While car ownership was once a marker of affluence, it is now more indicative of the local population's consumption behaviour and spatial patterns.
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Household income and car ownership
Analysis of car ownership in Australia in 2021 revealed that 87.6% of households owned at least one car, while 7.1% did not. Overall, 35.1% of households owned one car, 34.6% owned two cars, and 17.9% owned three or more cars. The average number of motor vehicles per household was 1.8.
Household income plays a significant role in car ownership. Higher-income households may have a greater ability to afford multiple vehicles, contributing to a higher proportion of households with two or more cars. Conversely, lower-income households may have limited financial resources, resulting in a lower likelihood of car ownership or a preference for owning a single vehicle.
Additionally, household type and age structure are factors that influence car ownership. Larger households with multiple adults may require more vehicles to meet their transportation needs. Similarly, households with older members who are retired or no longer drive may have a different vehicle ownership pattern compared to households with younger, working-age adults.
Access to public transport and the distance to essential services can also impact car ownership. Households with convenient public transport options may choose to own fewer cars, while those in remote or rural areas with limited public transport may rely more on private vehicles.
It is worth noting that while there is no legal limit to the number of cars one can own in Australia, local council standards and bylaws regarding vehicle sales and property appearance may indirectly influence car ownership, especially for households selling vehicles from their residence.
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Transport access and car ownership
According to the Australian Bureau of Statistics' 2021 Census, 52.7% of the Australian workforce commuted to work by car, compared to 61.5% in 2016. This decrease may be attributed to factors such as increased remote work, with 21% of employed people working from home on Census day in 2021, up from 4.7% in 2016. Additionally, the use of trains as a mode of transport to work decreased significantly from 488,012 in 2016 to 170,326 in 2021.
In terms of car ownership, the Census data revealed that 87.6% of Australian households owned at least one car, while 7.1% did not. Of those who owned vehicles, there was a larger proportion owning two or three cars or more. Specifically, 35.1% owned one car, 34.6% owned two cars, and 17.9% owned three or more cars. These statistics highlight the importance of private transport for many Australians.
While there is no official limit to the number of cars an individual can own in Australia, there are regulations around selling cars. In most states and territories, individuals can sell up to four cars in a 12-month period without needing a specific licence. However, in the ACT and Tasmania, the limit is six cars per year. Exceeding these limits requires a Motor Vehicle Trade licence or similar, depending on the state.
In summary, transport access and car ownership in Australia are influenced by various factors, including individual needs, household characteristics, and the availability of alternative transport options. Car ownership provides a level of flexibility and accessibility, particularly in areas with limited public transport options. However, it is important to consider the environmental and social impacts of high car ownership rates and encourage a balance between private and public transport usage.
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Car ownership by state
While there is no legal limit on the number of cars one can own in Australia, car ownership varies across states and is influenced by several factors, including age, household type, access to public transport, distance to essential services, and household income.
In 2021, 87.6% of Australian households owned at least one car, with 35.1% owning one car, 34.6% owning two cars, and 17.9% owning three or more. However, car ownership rates vary between states and territories. Queensland, South Australia, and the Australian Capital Territory reported the largest increases in vehicle registrations from 2020 to 2021, with growth rates of 2.3%. During the same period, Victoria's fleet grew the least, with a 0.7% increase.
When it comes to selling cars, the regulations differ slightly across states. In Victoria, New South Wales, Queensland, South Australia, Western Australia, and the Northern Territory, individuals can sell up to four cars in a year without a license. However, in the Australian Capital Territory and Tasmania, residents can sell up to six cars annually without requiring a Motor Vehicle Trade license.
The mode of transportation to work also varies across states. In 2021, 52.7% of the Australian workforce drove to work by car, with the Northern Territory having the highest proportion of people walking to work at 7.6%.
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Car ownership and usage trends
According to the Australian Bureau of Statistics' 2021 Census, 87.6% of Australian households outside of Greater Capital Cities owned at least one car, while 35.1% owned one car, 34.6% owned two cars, and 17.9% owned three or more. In comparison, 87.2% of households in Greater Capital Cities owned at least one car, with 36% owning one car, 34.4% owning two cars, and 16.8% owning three or more. These statistics indicate a relatively even distribution between owning one, two, or three or more cars across Australian households.
The mode of transportation to work has also evolved over the years. In 2021, 52.7% of the Australian workforce drove to work solely by car, compared to 61.5% in 2016. During the same period, the number of people walking to work decreased from 488,012 to 170,326. The rise of remote work has also impacted transportation trends, with 2.5 million people (21%) working from home in 2021, a significant increase from 500,000 (4.7%) in 2016.
While car ownership is prevalent in Australia, it is important to note that some households, particularly in remote or rural areas, may not have access to a registered motor vehicle. Community organizations, such as the Coen Regional Aboriginal Corporation (CRAC), have recognized the importance of transportation and have taken initiatives to ensure that community members can participate in their programs. CRAC purchased a bus to provide transportation for those who may not have their own vehicles.
In terms of selling cars, regulations vary across states and territories. In Victoria, New South Wales, South Australia, Queensland, Western Australia, and the Northern Territory, individuals can sell up to four cars in a 12-month period without a license. However, in the ACT and Tasmania, the limit is six cars per 12 months. Exceeding these limits requires a Motor Vehicle Trade license or a similar license, depending on the state.
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Frequently asked questions
As of 2021, 35.1% of Australian households owned one car, 34.6% owned two cars, and 17.9% owned three or more.
Yes, there are. In 2023, NSW had the most registered motor vehicles at 6,154,814, while the Northern Territory had the fewest at 166,110.
No, there is no legal limit to the number of cars a family can own in Australia. However, there are limits to the number of cars you can sell in a 12-month period without a Motor Vehicle Trade licence.
This depends on the region. In Victoria, NSW, South Australia, Queensland, Western Australia, and the Northern Territory, you can sell up to four cars in a year. In the ACT and Tasmania, you can sell up to six.
The number of cars a family owns in Australia is influenced by factors such as age structure, household type, access to public transport, distance to essential locations, and household income.



























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