Most Australians spend more time choosing a restaurant than reviewing their household bills. That habit costs the average family thousands each year, according to new research from Canstar that quantifies what it calls a "set and forget" tax on household budgets.
The findings position bill negotiation and provider-switching as one of the highest-return uses of a few hours' effort, potentially outpacing gig economy work or other popular side hustles.
What the Numbers Show
Canstar calculated potential savings across a range of common household expenses for a family of four. The headline figure: more than $11,300 a year in savings is achievable if a household swaps half its regular spending to lower-cost alternatives. More modestly, simply renegotiating or switching core bills could yield around $4,474 annually.
The biggest single opportunity lies with home loans. Canstar found that switching or renegotiating mortgage providers could unlock at least $1,499 in savings. Car insurance came second, with potential savings of $1,040 by moving from an average-rated policy to one with a five-star rating.
Switching utilities and services—home and contents insurance, health insurance, internet, electricity, and mobile plans—from average to the lowest-cost options on the market could save a further $1,935 a year. Additional categories including gas, credit cards, and life insurance offer further potential gains, though these vary more by individual circumstance.
Even simply threatening to leave can work. "Providers frequently drop their prices when customers signal they're considering alternatives," Tindall observed. "Don't be afraid to haggle with your existing provider."
Council Rates: The Other Bill Australians Rarely Challenge
While most attention falls on discretionary spending, council rates represent a significant annual commitment that many homeowners simply pay without question. 7news.com.au reported that homeowners in some of the country's highest-charging council areas now face annual bills between $1,300 and nearly $3,000, with increases of 3 percent to 12 percent approved for the coming financial year.
Six of the ten most expensive councils are in South Australia, with Roxby Downs averaging $2,646 a year—driven by its remote location, small population, and elevated operational costs. Nillumbik Shire in Victoria sits at around $2,696 annually.
Among mainland capitals, Adelaide residents paid the most on average—typically $2,200 to $2,300—outpacing Melbourne, Brisbane and Sydney. Canberra stands apart, with ACT government charges pushing typical bills to between $2,500 and $4,500 or higher.
Australia's councils collectively collected $25.1 billion in 2024-2025, a significant rise from the $16.9 billion recorded ten years prior. Victoria led the states at $6.636 billion, slightly ahead of NSW's $6.2 billion, despite New South Wales having more dwellings.
Residents in several high-charging areas told 7news.com.au that annual increases are difficult to absorb when service quality hasn't visibly improved. One homeowner, Sarah, 42, from coastal New South Wales, said her rates have climbed nearly $400 in three years with no apparent upgrades to local infrastructure. "I'm paying more every year for the exact same thing. Nothing has changed," she said. A retiree in regional South Australia, Tony, 67, said a 7.2 percent rise felt like "a slap in the face" when his pension hasn't kept pace. His annual bill now exceeds $2,300.
Our Analysis
The two stories share a common thread: inertia. Whether it's a home loan, an insurance premium, or a council rate notice, the default for most Australians is to do nothing. Canstar's data suggests half of all home loan borrowers have never switched providers. That loyalty has a price—and it's paid directly to lenders, insurers, and councils who bank on it.
For property investors, this matters in two ways. First, unnecessary household expenses reduce the pool of money available for savings and investment. Second, the same "set and forget" mentality that afflicts personal finances can infect investment decisions—holding underperforming assets, ignoring better loan structures, or sticking with a property manager who isn't delivering.
The council rate story adds a layer that investors can't ignore. If rates in some areas are climbing faster than inflation while services stagnate, that erodes net rental yields and capital growth prospects. Properties in councils with high, frequently rising rates become less attractive on a yield basis, all else being equal. Investors should factor in not just current rates but the trajectory of rate increases when comparing properties across different council areas.
A Practical Example
Say you currently pay $1,800 a year in council rates. Your council announces a 5 percent increase. Rather than simply absorbing it, you call the council office, ask what the increase covers, and request an itemised breakdown of where money has been spent on improvements in your suburb. You follow up with a written query about whether a rates hardship provision or payment plan exists. Even if the increase stands, you've established that you're paying attention—and you're better positioned to challenge the next one. Apply the same approach to your home loan, insurer, and energy provider.
Bottom Line
Three hours of systematic bill review could be worth more than a weekend of gig work. The numbers from Canstar are substantial, and the behavioral barrier is purely psychological: most people simply don't act. Council rates are harder to negotiate individually, but ratepayers who engage collectively—through local forums or ratepayer groups—can at least demand accountability for where increases are directed. In a market where every basis point counts, leaving thousands on the table through inaction is an avoidable cost of ownership.
Key takeaways
- Household bill-switching can yield over $11,300 annually for a family willing to invest a few hours, Canstar found.
- Home loan switching offers the single largest opportunity at $1,499 or more, followed by car insurance and utility providers.
- Council rates in some areas now exceed $2,500 annually, with some councils applying increases of up to 12 percent.
- Inertia costs money. Investors who review loan structures and property expenses regularly gain a compounding advantage over those who don't.
- Resident dissatisfaction with rising rates and stagnant services is growing in several high-charging council areas.
Frequently asked questions
How much can the average Australian family save by switching providers?
Canstar calculated that families could save around $4,474 by renegotiating or switching core bills. More aggressive switching across half of all household spending could push annual savings above $11,300.
What is the easiest bill to switch for the biggest savings?
Home loans offer the largest single opportunity. Canstar identified at least $1,499 in potential savings just from switching or renegotiating mortgage providers.
Are council rates increasing across Australia?
Yes. Many councils are applying increases of 3 to 12 percent for the coming financial year. Annual bills in some areas now exceed $2,500, and national municipal rate revenue has grown to $25.1 billion.
Do providers offer better deals if you simply ask?
Canstar reported that threatening to leave often results in improved rates. Simply contacting your existing provider and indicating you're shopping around can unlock discounts.
What are the highest-charging councils in Australia?
Six of the ten most expensive councils are in South Australia. Roxby Downs averages $2,646 annually, driven by remote location and high operational costs. ACT government charges push bills to $2,500-$4,500 or higher in that territory.