What’s the ‘Singles Tax’ & how you can reduce itJun 26, 2023
By Sophie Ryan, iSelect Spokesperson
Flying solo? ✈️ Unattached and loving it? You may also love the freedom of being able to spend your hard-earned money when and how you choose, but did you know that new research suggests solo Australians are forking out more than $7,000 in ‘Singles Tax’ annually? 😱
The YouGov research, commissioned by comparison service iSelect, has revealed that single Australians surveyed living alone with no kids (SINKs) paid an estimated $7,691 more per year on housing and living expenses, compared to their coupled-up counterparts. And it seems many realise it too, with 74% of singles surveyed telling us they believe they’re bearing the burden of the ‘Singles Tax’.1
Monthly, SINKs are spending on average an estimated $2,198.93 on common household bills and housing costs, while an individual living in a double income household with no kids (DINKs), are spending just $1,557.99 per month, highlighting the upside for those in a relationship when it comes to splitting housing and other living costs.1
So, if you’re paying the price for being single (literally), read on as we share some tips on how to reduce the ‘Singles Tax’.
- Look over your plans/policies regularly 👀– We get it, life is hectic, time is short and finding a moment to sit down and review your household bills and expenses can be hard. But as Australia’s cost-of-living crunch continues, can you really afford not to? There’s a chance you could be paying for things you don’t really need, and not paying for things you do – especially when it comes to plans and policies such as health, home and contents or car insurance. Review your needs and circumstances regularly and make sure your current policy or plan aligns.
- Shop around 🛍– How faithful are you when it comes to household bills and expenses? Do you tend to stick to the same plan and/or provider for your energy deal or health insurance policy? Think your loyalty will pay off? Well, you may want to think again! In fact, providers often offer better rates/premiums to attract new customers and leaving loyal existing customers with higher rates. Whether it’s your energy plan, home and/or contents insurance, health insurance policy or your home loan, a comparison service such as iSelect* can help you try to find a better deal.
- Consider a higher excess and look for deals 💰– Some insurance companies may offer you lower premiums if you opt for a higher excess. Also, around certain times of the year, insurers (particularly health funds) may offer incentives to attract new customers, and that could be a good time to shop around and take advantage of any deals and offers. Don’t be lured by the cheapest deal though. Make sure any policy/plan is suited to your needs and circumstances.
There you have it. Three things to consider that could put some extra money back in your pocket if you’re bearing the burden of the ‘Singles Tax’. And look, even if you are living in a dual-income situation, doing the same could be a great idea too, especially with so many cost-of-living hikes to contend with right now!
ABOUT THE AUTHOR
Sophie Ryan is an experienced journalist and spokesperson for comparison service, iSelect. She’s passionate about helping Australians to save time, effort and money. She holds a Bachelor of Journalism from the University of the Sunshine Coast and provides advice on how Aussies can save on their household bills.