If your weekly shop, power bill and mortgage repayment all seem to be heading in one direction, you’re not imagining it. On 3 November, Melbourne Cup Day, the Reserve Bank lifted the cash rate to 4.85%, its fifth rise this year and the highest level since 2008. The decision came less than a week after the Australian Bureau of Statistics reported that prices had risen 4.3% in the year to September, up from 4.0% in August. Housing costs, including electricity, were the biggest driver, rising 5.2%.
You can’t control interest rates or inflation. But you can control where your money goes. We’ve gathered the best advice from government and consumer experts to help you trim your spending without making life miserable.
1. Start with a 10-minute budget
It’s the least exciting tip, but experts agree it’s the one that makes the others work. You can’t cut spending if you don’t know where your money is going.
Most of us skip this step. Research by Moneysmart, the government’s free money guidance service run by ASIC, found that while 82% of Australians aged 29 and over had changed something in response to rising living costs, only one in three (32%) had done a budget.
Moneysmart’s free online Budget Planner takes about ten minutes. Here’s how to get the most out of it:
- Gather your paperwork. Pull out recent bank statements, bills and receipts so you’re working with real numbers, not guesses.
- Include the irregular costs. Car registration, servicing, annual insurance premiums and pet bills are easy to forget, and they’re often what blows a budget.
- Test the trade-offs. The planner lets you see how cutting back in one area, such as subscriptions or eating out, frees up money for essentials.
- Review it regularly. Prices are moving fast, so revisit your budget every few months.
2. Shop smarter at the supermarket
The single most useful money-saving tool in the supermarket is printed on almost every shelf label, and many of us ignore it. It’s the unit price: the small figure under the main price showing the cost per 100g, per litre or per item.
Consumer group CHOICE says unit pricing beats every other common way of saving on groceries, including buying on special and choosing home brands. In one CHOICE test, only some shoppers picked the best-value product from images without unit prices. When unit prices were shown, 74% got it right.
CHOICE’s tips for using it well:
- Compare across brands. The price gap between brands of the same product is often large.
- Check every pack size. Bigger packs are often, but not always, cheaper per unit.
- Test the “special”. A product on sale isn’t always cheaper per unit than a different brand at full price.
- Compare loose and pre-packed. Loose fruit, vegetables and meat are often cheaper. CHOICE has estimated that comparing them by unit price could save up to $1600 a year.
- Sort online. If you shop online, you can sort many products by unit price, from lowest to highest.
Buying in bulk can pay off too, but only for things you’ll actually use before they expire. When CHOICE compared prices on 80 grocery items, some bulk buys were much cheaper and others weren’t, so check the unit price before you load up the trolley.
3. Check your energy plan
Electricity is one of the main reasons housing costs are climbing. It’s also where many households are paying more than they need to, simply because they’ve never switched plans. And the federal government’s Energy Bill Relief Fund, which took up to $300 a year off household bills, ended on 31 December 2025, so many people are now seeing the full cost.
The experts’ advice is simple: grab your latest bill and compare.
- Use the free government comparison sites. Energy Made Easy, run by the Australian Energy Regulator, covers NSW, Queensland, South Australia, Tasmania and the ACT. Victorians should use Victorian Energy Compare. Both show every generally available plan, with no commercial bias. Upload your bill or enter your usage to compare plans against what you actually use.
- Know your benchmark. In NSW, south-east Queensland and South Australia, the regulator sets a Default Market Offer, a capped price for standard plans. Retailers must show how their prices compare to it. If the Default Market Offer is cheaper than your current plan, your retailer must move you to it if you ask.
- Look at the total cost. A plan with a cheaper usage rate but a higher daily supply charge can end up costing more. Compare the yearly estimate for your usage, not just the headline rate.
- Ask about concessions. States and territories offer energy concessions and rebates, especially for pensioners and concession card holders. Ask your retailer what you’re entitled to.
- Call your retailer if you’re struggling. Energy companies have hardship teams that can set up payment plans.
4. Make rising rates work for you, not against you
Five rate rises in one year is tough on borrowers. But there are steps that can soften the blow, and a few that can make higher rates work in your favour.
- Ask your lender for a better rate. Comparison site Mozo found that half of the borrowers it surveyed had never thought to call their lender to negotiate their rate. Lenders would often rather offer a discount than lose you, so ask. If they won’t budge, compare what other lenders are offering.
- Weigh up refinancing carefully. Switching lenders can cut your rate, but check the fees and any break costs first. Moneysmart’s free mortgage calculator shows how much a rate change affects your repayments.
- Put your savings to work. Rate rises also mean higher returns on savings. If your money is sitting in an everyday account, moving it to a high-interest savings account could earn you noticeably more. Check the conditions, as many top rates need regular deposits or apply only for an introductory period.
- Speak up early if you’re struggling. All lenders have hardship teams. If you can’t keep up with repayments, you can ask for a “hardship variation” to change your loan terms or temporarily pause or reduce repayments, and your lender must consider your request. Moneysmart’s advice is to make contact as early as possible, because you’ll have more options.
- Don’t ignore a default notice. If you receive one, talk to your lender or get free legal advice straight away.
5. Stop paying the “loyalty tax”
Many companies reward new customers with their best prices while quietly charging long-standing customers more. Experts call it the loyalty tax, or the lazy tax, and it’s easy to fall for. A Finder survey found the services Australians most often let auto-renew are car insurance, mobile phone plans and streaming subscriptions.
- Shop around at every insurance renewal. CHOICE says shopping around is the most effective way to cut car and home insurance costs. Premiums vary widely between insurers, and between new and existing customers. In CHOICE’s 2026 analysis of home and contents insurance, the gap between the cheapest and most expensive average premium was as much as $3584 in northern Queensland.
- Get a quote as a new customer. Before you accept a renewal, get a fresh online quote from your own insurer. CHOICE members have reported quotes hundreds of dollars cheaper than their renewal notice. If yours is, call and ask them to match it.
- Consider a higher excess. Agreeing to pay more if you claim can lower your premium, as long as you could afford the excess if you needed to.
- Audit your subscriptions. Go through your bank statements and cancel the streaming services, apps and memberships you don’t use. You can always rejoin later.
- Check your phone and internet plans. If you’re out of contract, you may be paying more than new customers for the same plan.
6. Fill up for less
The Australian Competition and Consumer Commission (ACCC) recommends using a fuel price app or website to find the cheapest petrol near you before you fill up. Prices can vary a lot between stations only a short drive apart. Many states have their own fuel price apps, and motoring clubs such as the NRMA, RACV and RACQ offer price finders too.
In Perth, prices follow a regular weekly cycle, and Tuesday has typically been the cheapest day. The ACCC publishes buying tips for Sydney, Melbourne, Brisbane, Adelaide and Perth several times a week, though price cycles in the eastern capitals have been less predictable this year. If your car runs on it, a cheaper grade such as regular unleaded 91 or E10 will also save you money.
Where to get free help
If money worries are becoming overwhelming, you don’t have to work it out alone. These services are free and confidential:
- National Debt Helpline: 1800 007 007 (Monday to Friday, 9.30am to 4.30pm), or live chat at ndh.org.au. Financial counsellors can help you make a plan, and negotiate with lenders and billers on your behalf.
- Mob Strong Debt Helpline: 1800 808 488, free legal advice on money matters for Aboriginal and Torres Strait Islander peoples.
- Australian Financial Complaints Authority: 1800 931 678, if you have a dispute with your bank, lender or insurer.
- Moneysmart: moneysmart.gov.au, for the free Budget Planner, calculators and guides.
- Lifeline: 13 11 14, 24 hours a day, if financial stress is affecting your wellbeing.
