Money
The $569 mistake most households are still making
New research shows Australian households are quietly overpaying by hundreds of dollars a year simply by staying loyal to their utility providers. Here’s where the money is leaking and how to stop it.
By Bron Maxabella
Here’s an annoying truth most of us would rather not hear before our morning coffee. Australian households quietly handed over $6.7 billion last year just by staying loyal to their energy, internet and mobile providers. Not through scams or fraud, but rather through good old-fashioned “I’ll deal with that later” inertia.
New research from Finder shows the average household paid an extra $569 in 2025 across their internet, mobile and broadband simply by not switching. That’s money siphoned out of our accounts while better deals sat right there, patiently waiting for ‘new customers only’.
And before you say “that’s not me”, it probably is. Most of us are guilty of this one.
The loyalty tax most of us are paying
Finder looked at what Australians actually pay for energy, mobile and NBN, then compared it to the cheapest comparable plans on the market. The gap is sobering.
Energy is the biggest offender, costing households $2.9 billion a year. Mobile plans are draining another $2.8 billion, followed by NBN adding almost a billion more. All up, it’s one of the biggest invisible money leaks in Australian homes.
Finder utilities expert Mariam Gabaji puts it plainly: “While these are non-negotiable expenses, the price you pay for them absolutely is. Remember, providers typically reserve their best prices for new customers… If you haven’t switched providers – be it energy, broadband or mobile – in the last 12 months, chances are you’re paying too much.”
Don’t miss this Citro Rewards offer: Get $75 cashback when you switch both electricity or gas with Compare the Market. Prefer one? Get $40 cashback for switching electricity.
Why this hurts more as we get older
If you’ve been with the same provider for years, this loyalty tax has a nasty multiplier effect. Longer tenure means more time on outdated plans and traditional ‘bundled services’ can make switching feel fiddly. And there is also the quiet belief that being a “good customer” should count for something…
Sorry, it doesn’t. Most providers are betting you won’t check, won’t call and definitely won’t leave. And statistically, they’re right.
The result is hundreds of dollars a year quietly evaporating, money that could be padding your travel fund, boosting your super contributions, or just making your money feel less squeezed.
The set-and-forget trap
Finder’s research shows many of us lock in our utilities once, then never look back. Our bills are paid automatically and emails alerting us about price rises slide through unchecked. The very thought of switching suppliers generally feels more irritating than urgent.
But the fact is, if you haven’t reviewed your energy, internet or mobile plan in the past 12 months, there is a very good chance you are paying more than you need to. Not because you did anything wrong,but because you did nothing at all.
More on this: Do this one thing at least once a year to save big money
How to stop overpaying
This is the good news section. There are steps you can take right now to get a better deal.
Start by comparing what you’re on with what’s available in the market. Use a comparison site like Compare the Market to see how much you could save if you make the switch.
Then ask for a better deal. Call your provider, tell them what you’ve found, and see what happens. Chances are they’ll match it, but if they can’t, that’s your cue to move on and switch suppliers. You can easily do that through the deal you found on Compare the Market. If you take it up via Citro Rewards, you’ll get an extra $75 cashback on top of the savings you’ll get from switching.
The easiest money to save is the money you’re already spending. Sometimes all it takes is asking one uncomfortable question and being willing to switch if you don’t like the answer.
Feature image: iStock/Morsa Images
This article reflects the views and experience of the author and not necessarily the views of Citro. It contains general information only and is not intended to influence readers’ decisions about any financial products or investments. Readers’ personal circumstances have not been taken into account and they should always seek their own professional financial and taxation advice that takes into account their personal circumstances before making any financial decisions.
‘Fess up in the comments below: how long has it been since you reviewed your utilities?
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