Time to read : 5 Minutes
If you’re a single Aussie, you might feel like you’re being financially punished. While couples and families can split the costs for groceries, streaming services, utilities, and mortgages or rent, for singletons, keeping those living costs down is a lot harder.
The phenomenon known as the ‘singles tax’ is the extra financial burden that comes with solo living. It’s almost like an extra ‘tax’ on your day-to-day life, just for the privilege of being single.
While it’s much easier for couples and families to split their costs than it is for singles, it’s not impossible to reduce the financial load. Some expenses hit harder than others, but there are still ways you can identify some singles tax-breaks for yourself.
Why does the singles tax exist?
Now let’s be clear – the singles tax isn't an actual tax. It simply refers to the costs for single people being higher than those of couples, families or in a share house, largely due to the inability to split every day costs.
Imagine there’s a two bedroom apartment for rent. If you’re planning to live with someone else in this property, you can split the rent (as well as other living expenses). But if you’re single and planning to live on your own, you would have to foot the entire rent by yourself (and the other living expenses).
With singles on the rise – 28% of all households are predicted to be single-person households by 2046 – and cost of living a key concern for many people, it’s easy to see why the singles tax has become such a hot topic.
When it comes to utilities, your base service charges will be the same, so the difference between energy, water and gas bills for one person to two people is unlikely to change much. But being able to halve that if you’re a couple, will create significant savings against the prices someone who is single will pay.
Looking at the cost of groceries, a report by Dayjob found the average weekly grocery bill for a single person in 2024 was $142 whereas a family of four was $254. While the outlay is greater for a family, it works out much less per person than what a single person pays at the checkout.
Streaming subscriptions and home or renters insurance is a similar story. The costs can be split between multiple people in the household, but the singles tax once again adds up for anyone living solo.
How can you offset the singles tax?
There are scenarios that may leave you facing the singles tax. Perhaps you’ve:
recently moved out of home
become separated, divorced or widowed
moved for a job opportunity.
The costs you’re suddenly facing alone can seem overwhelming. Here are some ways you can claw back your finances.
Rent and utilities
The best place to start is at the beginning, with your living situation. If you own a home, it can be harder to find a way to split your utilities or mortgage, but if your situation has recently changed it might be worth considering a roommate.
It could also make more sense financially for you to rent out your home and find a place in a sharehouse, where utilities, rent and even groceries can be split among more people.
If you end up in a sharehouse or with a roommate, you’ll also be able to split a family account or duo account on streaming services, which will work out less than paying for two single accounts.
Be aware: before you rush ahead with renting out your property, make sure you speak to a professional about the tax implications. The last thing you want is a tax bill that costs you more in the long term.
Buy in bulk or larger quantities
Some of the singles tax comes from solo people being unable to reap the same benefits of buying in bulk from wholesalers, or larger sizes from supermarkets, that couples and families take advantage of. But with a bit of number crunching you can work out whether buying big can save you money.
When supermarket shopping, have your calculator handy to do price comparisons against the unit price. While large sizes are generally more cost-effective, they won’t be economical if you end up throwing away items because they have passed their expiry date, which can often be the case with perishables.
For example, should you buy a 1 litre milk at $3.90 or pay an extra $3 for the 2 litre option at $6.90? While the 2 litre option seems better value for money on paper, it may not be if you have to chuck it out. To help you decide, look at the expiry date and ask yourself if you’ll be able to finish it before it spoils.
While this can take a bit of time to do – as you’ll need to apply this rule to all perishables – it’s the best way to reduce waste and not pay more than you have to.
💡 to help maximise the value of your shop, reach towards the back of shelves for perishable items with longer expiry dates. A few extra days may be all you need to finish off that 2 litre milk.
If you have room in your freezer, look into buying frozen veggies, meats or poultry in bulk. This will require some forward planning of your meals, but it can really cut down your grocery bills. And if you’re super organised, you can even bulk cook to keep costs even lower.
It’s worth asking around to see if anyone in your circle has a Costco membership and would be willing to take you so you can stock up on bulky things like toilet paper or other non-perishables that don’t have a lifespan.
Even if you’re living alone, you can find ways to share the load with your community. If you’re friendly with your neighbours, suggest going halves on bulk items. And keep an eye on your local Facebook groups where people may have excess fruit or veg they need to get rid of.
Share and save
There are now several different car share operators, and Uber even offers car rentals. If you don’t use your car every day, these can work out much cheaper than the cost of registering, maintaining and running a car.
Have you ever heard of the ‘single supplement’? That’s an added charge in the travel industry if you book something like a tour, cruise or accommodation, when your booking could be taken by a couple instead.
To avoid the single supplement, you’ll need to opt for a twinshare, but that does mean either bunking with a stranger, or finding a friend to travel with. Finding a travel buddy may be a bit more legwork but on the bright side you’ll not only be able to split the cost of the trip, but also be able to share the experience with another person.
If you regularly use a ride-share home from work or a night out, ask around for people you can split the fare with. It’s cheaper to add a stop to a ride than it is to order two, and if one of your colleagues is in a similar situation, you may just have found a new buddy to split costs with.
You can also opt for Uber Share in the app and share a ride with others which reduces the cost – but you might need to walk a bit further to the pick up location and have a slightly longer ride home.
Make the most of your independence
Of course, the singles tax feels a little unfair, and it makes it a lot harder to set financial goals for yourself. But being on your own can also allow you to be completely in control of your own financial destiny and set a clear budget.
If you’re newly solo, it’s a great time to look at your expenses and where you can cut back. Make sure you’re not spending on things you don’t need, cut back on the lifestyle creep and bring in some good financial hygiene.
Don’t make the mistake of assuming what your costs will be, look at your bank statements and be sure you’re using actual figures so you know where your money is going and where you can make changes to save.
Are you spending money on groceries only to order takeaway food three nights a week?
Have you got four streaming services when you’re only really watching one? This is a great time to get that under control and put yourself in the best position to move forward.
Bottom line
The singles tax is a global phenomenon, so you’re not alone in this. It can be easy to feel overwhelmed, particularly if this is new for you, but don’t make the mistake of waiting until you feel more stable to get on top of your finances.
Advocacy groups are calling for reform, particularly to support single mothers who are often hit hardest by the singles tax, but in the meantime, a bit of research and some time spent getting to know your finances can go a long way to help you offset the costs!
Go deeper:
Are you getting the best value from your streaming services?
Is it possible to travel overseas without breaking the bank?
Can renting out your spare room help you survive the cost-of-living crisis?
Disclaimer
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
