What’s the ‘Singles Tax’ & how you can reduce it

financial independence financial knowledge savings spending Jun 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’.  

  1.  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.  
  2.  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.  
  3.  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!

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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.



*iSelect does not compare all products in the market. The availability of products iSelect compare may change  from time to time. Not all products made available from iSelect’s providers are compared by iSelect and due to  commercial arrangements, area or availability, not all products compared by iSelect will be available to all  customers. Some products and special offers may only be available from iSelect’s call centre or website. Click here to view iSelect’s range of Providers. 
1Source: iSelect commissioned YouGov Galaxy Pty Ltd to conduct a national online survey between 6 April and 13 April 2023. The sample  is n=2,112 Gen Z's and Millennials aged 18-43 comprised of a nationally representative sample of 1,000 singles living alone and 1,112  couples living together, no kids

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