More than $7,500 on the table for those willing to make the switch in 2026
14 Jan 2026
Households could save more than $7,500 in a year by switching to lower-cost providers, plans, and supermarket products, our research has revealed.
The potential savings come as the risk of a cash rate hike looms on Australia’s economic horizon and households continue to struggle with rising cost-of-living pressures.
More than $7,500 could be saved in a year
An average household could end the year with more than $7,500 back in their budget by making the switch on expenses and bills, including refinancing to a lower home loan rate, changing electricity plans, and moving health insurance providers.
When combined with savvier shopping at the supermarket, such as switching half the basket to cheaper items, those savings tally up to $7,750.
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| How much could the average family of four save in one year? | ||||
|---|---|---|---|---|
| The switch | Average cost | Lower cost | Potential savings | |
| Groceries | Switch 50% of the weekly shop to home brands | $12,480 | $10,056 | $2,424 |
| Home loan | Refinance $600k loan with 25 years from average rate to the lowest | $34,018 | $32,053 | $1,965 |
| Car insurance | Switch to policy from a 5-star rated insurer instead of the average | $2,747 | $1,731 | $1,016 |
| Home and contents | Switch to policy from a 5-star rated insurer instead of the average | $2,795 | $2,029 | $766 |
| Mobile plan (x2) | Switch from the average-priced 50GB postpaid plan to the lowest | $1,104 | $696 | $408 |
| Private hospital insurance | Silver, family policy switching from the average to a 5-star-rated policy | $3,487 | $3,155 | $332 |
| NBN | NBN100 plan, switching from the average-priced to the lowest | $1,265 | $960 | $305 |
| Electricity | Switch from the average to the lowest-priced electricity plan | $1,770 | $1,490 | $280 |
| Gas | Switch from the average to the lowest-priced gas plan | $1,116 | $862 | $254 |
| TOTAL POTENTIAL SAVINGS | $7,750 | |||
Source: Canstar. See notes at end for details on average and potential annual cost methodologies.
How to fix your finances in 2026
Canstar data insights director, Sally Tindall, says, “The start of a new year is a great time to reflect on your finances and make the changes that will set you up for the 12 months ahead.”
“Review your major expenses, compare what you’re paying against what else is on offer in the market and if there’s savings to be had, make the switch.
“Moving your major recurring expenses to more competitive options could see you hundreds, if not thousands of dollars ahead by the end of 2026.
“If you’re not sure how to tackle the task, start by writing out a list of every regular expense and decide which ones you can switch, negotiate or cut.
“Haggling with your current provider is also another way to get a discount, and you’d be surprised how willing some are when the threat of losing a customer becomes a reality.
“While this is a great task for the start of 2026, it’s also good to put reminders in throughout the year to make sure you’re still on a competitive rate and getting the best value for your money.
“If you’re struggling to pay the bills, reach out to your provider for help and see if they can put a payment plan together for you. There’s also the National Debt Helpline, a fantastic resource that can help you get on top of your debts in the year ahead.”
Methodology
- Groceries: based on average percent saving of 38.8% from purchasing home-branded products instead of the cheapest branded price across a selection of products from Woolworths and Coles and applied to the average grocery bill of a household of 4 as per Canstar research, July 2025.
- Home loans: average owner occupier variable rate based on RBA data. Repayment calculations assume a principal and interest loan with $600,000 owing and 25 years remaining. Assumes refinance costs of $1,150, and the assumption of one cash rate hike in February, passed on in full by the banks in March.
- 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.
- Home & contents insurance: based on quotes obtained for Canstar’s 2025 Home & 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.
- Mobile: based on 50GB sim-only postpaid mobile plans on Canstar’s database with unlimited SMS and calls.
- Health insurance: based on hospital health insurance policies on Canstar’s database. The government rebate of 16.192% has been applied. Minimum and average premiums based on state minimum and averages weighted by state population of insured persons (APRA, June 2025).
- NBN: Based on NBN plans on Canstar’s database offering the NBN100 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.
This article was reviewed by our Consumer Editor Meagan Lawrence before it was updated, as part of our fact-checking process.
