Cost of Living Comparison
Make every dollar count
Based on hypothetical scenarios, we've crunched the numbers on what an Aussie household pays for the bills that matter most. Switching to the lowest or 5-star plan in each category could put thousands back in your pocket, every single year. When cost of living is rising, Canstar is here to help you make every dollar count.
Cost of living comparison.
Each row compares the average rate or annual cost against the lowest cost or 5-star rated option on Canstar's database. Savings shown are per year. For more details on the hypothetical scenarios used for these calculations, read the category assumptions below.
| Category | AVERAGE RATE OR ANNUAL COST | LOWEST OR 5-STAR AVERAGE RATE OR ANNUAL COST | ESTIMATED ANNUAL SAVINGS |
|---|---|---|---|
| 6.26% | 5.49% | $3,372 | |
| $12,480 | $10,056 | $2,424 | |
| $2,747 | $1,731 | $1,016 | |
| $2,795 | $2,006 | $789 | |
| 8.68% | 5.67% | $684 | |
| $3,712 | $3,153 | $559 | |
| 18.51% | 8.99% | $544 | |
| Female$1,508 | $1,081 | $427 | |
| Male$1,074 | $744 | $330 | |
| Dog$1,356 | $952 | $404 | |
| Cat$834 | $542 | $292 | |
| $1,250 | $959 | $291 | |
| $1,758 | $1,489 | $269 | |
| $1,055 | $798 | $257 | |
| Male$657 | $405 | $252 | |
| Female$518 | $348 | $170 | |
| $556 | $348 | $208 |
Other ways to save, without switching.
You don't always have to switch providers to save. Here's some practical steps you can take right now.
Your mortgage is likely the biggest line item in your budget, and it's often a rewarding place to cut costs. With the RBA hiking three times in 2026 so far, there may be a substantial gap between your current rate and the sharpest deals on the market. Refinancing isn't romantic, but it could put serious dollars back in your pocket.
- Ask your existing lender for a discount before you switch.A quick call can land you a better rate with almost zero effort.
- Refinance with a new lender.Some lenders will pay you to switch your home loan.
- Review your home loan fees.Are you paying hundreds each year for a 'package' you don't use?
- Match your repayments to your pay cycle.Switch to weekly or fortnightly repayments to align and save.
Swapping big-name products for home-brand alternatives could slice your grocery bill by 38.8%, according to July 2025 Canstar Research. You don't have to overhaul your trolley, start small with the staples first.
- Plan meals around weekly specials.Use half-price staples to prep big-batch meals and freeze.
- Supermarket loyalty programs.Join for free or pay for extras. Just ensure savings outweigh membership costs.
- Bulk-buy pantry and freezer staples.Stock up on sle items or buy in bulk for bigger savings.
- Buy gift cards at a discount.Even 3% off your weekly shop can cut your annual grocery bill by hundreds.
When it comes to insurance, loyalty doesn't pay. Auto-renewing your policy may subject you to a 'loyalty tax', and new customers often get the sharpest pricing.
- If you can afford to, increase your excess.A higher excess can lower premiums, just ensure you can still claim.
- Bundle car and home insurance with one insurer.Why pay full price twice? Loyalty can pay when you bundle.
- Review your sum insured.Use a rebuild-cost calculator to avoid being under or over insured.
- Pay annually instead of monthly.Monthly instalments often include extra fees or interest.
- Remove extras you don't use.Cut the extras you don't need and watch your premium drop.
Premiums went up again on 1 April 2026. Most funds let you carry over served waiting periods when switching mid-policy, so there's little reason to stay on a policy that no longer fits.
- Remove extras you don't use.Cut the extras you don't need and watch your premium drop.
- Understand the Medicare Levy Surcharge.Basic hospital cover may be cheaper than extra tax.
- Check for corporate or member discounts.Many organisations partner with funds to offer discounted premiums.
- Consider a higher hospital excess.A higher excess can reduce premiums, provided you can afford it.
- Use extras before they reset.Book dental, optical or physio before your annual limits expire.
30% of Aussies named energy as their biggest worry, according to December 2025 Canstar Research.
- Solar rebates and feed-in tariffs.Check for rebates and subsidies for home solar and batteries.
- Off-peak rate plans.Save heavy electricity use for off-peak hours when rates are low.
- Bundle electricity and gas with one retailer.Your retailer may offer incentives for bundling services.
- Halve your shower length.Cut your hot water use with shorter or cooler showers.
- Heating and cooling.Keep heating and cooling at efficient temperatures and look at ways to better insulate your home.
Small habits at the pump and on your route can add up fast. Here's how you could trim this cost.
- Use fuel-price apps.You might find savings hidden just one street over.
- Fill up on the cheapest day.Fill up mid-week before the weekend spike hits your wallet.
- Use E10 if your car is compatible.Check your manual and see if you can save.
- Combine errands into single trips.Group your errands to save petrol and time.
- Check public transport or commuter options.Parking, petrol, and tolls can add up fast.
How we worked it out.
What does cost of living mean?
How is the cost of living measured?
Cost of living can be calculated in a number of ways, but the main option used in Australia is the Consumer Price Index (CPI). "The simplest way of thinking about the CPI is to imagine a basket of goods and services comprising items bought by Australian households," explains the Australian Bureau of Statistics (ABS). "Now imagine the basket is purchased each quarter. As prices change from one quarter to the next, so too will the total price of the basket. The CPI is simply a measure of the changes in the price of this basket as the prices of items in it change."
The basket is divided into the following 11 major groups:
- Food and non-alcoholic beverages
- Alcohol and tobacco
- Clothing and footwear
- Housing
- Furnishings, household equipment and services
- Health
- Transport
- Communication
- Recreation and culture
- Education
- Insurance and financial services
The CPI then shows whether the cost of products has increased or decreased over the quarter and/or year and by how much. This is something we all know as inflation. So, if the CPI increased by 6% over 12 months that means the annual inflation rate is 6%.
It's also worth noting that your personal inflation rate could be higher or lower than official numbers. It could be the types of items you buy or it could be because of your stage in life. The ABS offered this example: Younger households may incur a higher proportion of their expenditure on housing and child care, while those households entering the older age groups may incur increasing expenditure on medical services.
Canstar's Cost of Living Comparison
For the purposes of Canstar's Cost of Living Comparison, we have focused on a range of everyday bills including a mortgage, credit card, car loan, health insurance, home insurance, car insurance, pet insurance, life insurance, income protection insurance, gas, electricity, NBN, mobile plan and groceries. Canstar found the average price for a range of products that meet the needs of our hypothetical family of four and then we looked for savings. In some cases, that was simply a matter of switching to the cheapest product and in others, we incorporated our value-based star rating system and used the average price of 5-star rated products. You can see the assumptions that were made in the table and in the fine print underneath it.
Category assumptions
Source: www.canstar.com.au — 7/05/2026.
Home Loans: Average rate based on RBA Lenders' Interest Rates for outstanding loans of 5.51% in Jan-26 plus 0.75% to account for cash rate increases. Minimum rate based on owner occupier variable loans available for a loan amount of $600,000, any LVR and principal and interest repayments; excluding introductory and other special condition loans. Repayment calculations assume a loan amount of $600,000 and a total loan term of 25 years.
Groceries: Based on average percent saving of 38.8% from purchasing home-branded products applied to the grocery bill of a household size of 4 per Canstar Blue research, July 2025. Average percent savings based on comparing the home-brand price to the cheapest branded price of a selection of products from Woolworths and Coles.
Car Insurance: Based on comprehensive car insurance policies rated in Canstar's 2025 Car Insurance Star Ratings (June 2025). Annual premiums include quotes for both new and used cars for a range of scenarios, with state-specific target excesses ranging from $800 to $1,000. Average premiums include 5-Star rated products.
Home and Contents Insurance: Based on quotes obtained for Canstar's 2025 Home and Contents Insurance Star Ratings (August 2025), for a range of addresses, property assumptions and building sum insured amounts. Premiums based on packaged home and contents products with a sum insured value of $50,000 for contents. Market Average premiums include 5-Star rated products.
Car Loans: Average and minimum rate based on secured new car loans on Canstar's database, available for a loan amount of $40,000 and 5 year loan term; excluding loans only available for green vehicles.
Health Insurance: Based on Hospital health insurance policies on Canstar's database, excluding restricted and corporate funds and OSHC and Visitor policies. The Australian Government Private Health Rebate, Base Tier for under 65s, of 16.079% has been applied to premiums. Minimum and average premiums based on state minimum and averages weighted by state population of insured persons (APRA, December 2025).
Credit Cards: Lowest rate based on personal, unsecured credit cards on Canstar's database. Average rate per RBA Personal Finance Statistics (May 2026). Average balance accruing interest per RBA Credit and Charge Statistics, March 2026. Assumes 30% of personal credit card accounts are revolving a balance and therefore accruing interest, based on the Canstar 2026 Customer Satisfaction Survey (n=5,758).
Direct Income Protection Insurance: Based on policies rated in Canstar's 2026 Direct Income Protection Insurance Star Ratings (February 2026). Premiums based on a $4,500 monthly benefit amount.
Pet Insurance: Based on policies rated in Canstar's 2025 Pet Insurance Star Ratings (July 2025). Premiums are quoted based on a range of locations, breeds and excesses.
NBN: Based on NBN plans on Canstar's database offering the fast NBN speed tier. Cost disregards any upfront fees (setup, modem, delivery etc) and discounts. Excludes home wireless broadband products.
Electricity: Based on single-rate electricity plans on Canstar's database; excluding solar-only plans. Each plan's annual costs are calculated based on the estimated lowest possible price a representative customer would be charged in a year, assuming all conditions of discount offered (if any) have been met. Representative customer based on the reference usage per AER.
Gas: Based on gas plans on Canstar's database. Annual costs calculated assuming all conditional discounts offered (if any) are applied. Usage assumptions based on the average usages advertised by a selection of retailers for each distributor.
Direct Life Insurance: Based on policies rated in Canstar's 2025 Direct Life Insurance Star Ratings (May 2025). Premiums based on a $500,000 sum insured amount.
Mobile: Based on sim-only mobile plans on Canstar's database with unlimited SMS and calls.