‘Singles tax’ leaves solo Aussies paying nearly $10,000 more a year to cover basics
If you’re single and feel worse off financially than your coupled-up friends, you’re not wrong.
Singles are paying nearly $10,000 more a year than if they were part of a couple just to cover the basics, as Australia’s cost-of-living crisis hits those living alone hardest.
New research from ING has revealed Australians flying solo are being slugged with a growing “singles tax”, driven by everyday expenses that don’t scale down when you live alone.
WATCH THE VIDEO ABOVE: Singles pay $9,300 more yearly in living costs
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By continuing you agree to our Terms and Privacy Policy.“Everyday life costs more when you’re covering it all on your own,” ING’s James Tao said.
Rent, mortgages, internet, and utilities remain largely unchanged despite the number of people in the home, leaving singles to shoulder the full burden.
“They actually cost roughly the same whether one person lives there or two,” ING’s James Tao said.
That reality is translating into an extra $800 a month, or roughly $9,300 a year more in bills for singles than if the costs were split between each person in a couple.
The financial hit compounds over time, with singles falling behind on savings.
“It’s pretty clear when it comes to saving, singles tend to save about $400 a month less than couples. That can really add up over time,” Tao said.
On average, singles have about $20,000 less in savings, sitting at about $30,000 compared with $50,000 for couples.
Bill stress also kicks in sooner, at about $1,600 a month for singles, compared with $2,400 for couples.
Despite the disparity, singles retain full control over how they spend their money, with fewer compromises required.
Originally published on Sunrise
