Home › Blog · 2026-10-25

Cost of Living in Australia: 25 Budget Tips for Families That Actually Help

The cost of living has been the number one money stress for many Australian households over the past few years. Rent, groceries, power and insurance have all made a dent. You can't control prices, but you can control where every dollar goes. These tips are practical, mostly free, and focus on the big costs rather than guilt about a coffee.

This is general information only, so pick what suits your household.

Start with the big three: housing, food, transport

For most families, housing, groceries and getting around are the largest costs. A small percentage saved here beats cutting dozens of tiny treats.

Groceries

• **1. Plan a week of dinners before you shop.** A plan with a list is the single biggest grocery saver for most households.
• **2. Shop your fridge and pantry first.** Build at least two meals a week from what you already have.
• **3. Compare unit prices**, the price per kilo or per 100g on the shelf label, rather than the pack price.
• **4. Try home brand on staples** like flour, rice, canned tomatoes and cleaning products.
• **5. Cook once, eat twice.** Double a recipe and freeze half for a busy night that would otherwise be takeaway.
• **6. Set a fortnightly grocery number** and move it to a separate account on payday.
• **7. Buy fruit and veg in season**; it's usually cheaper and better.

Power and utilities

• **8. Compare your energy plan.** The government's Energy Made Easy website lets you compare plans in most states. Victorians can use Victorian Energy Compare.
• **9. Check for concessions and rebates** your state offers. Many households are eligible for something and don't claim it.
• **10. Run big appliances on off-peak times** if your plan has time-of-use pricing.
• **11. Ask your provider for a better deal.** A five-minute call can sometimes lower your rate.

Insurance

• **12. Don't auto-renew without checking.** Get a couple of quotes before renewal.
• **13. Review your cover levels and excesses** so you're not over or under insured.
• **14. Review private health insurance** extras you don't use.

Subscriptions and phone

• **15. List every subscription** from your bank statement. Most people find at least one they forgot.
• **16. Rotate streaming services** rather than paying for all of them at once.
• **17. Check your phone plan** against what you actually use. Smaller providers on the major networks can be cheaper.

Transport

• **18. Use fuel price apps** or your state's fuel price checker before filling up.
• **19. Combine errands** into one trip.
• **20. Put rego and insurance in your fortnightly budget** so they're not a shock.

The budget itself

• **21. Budget by pay, not by month.** If you're paid fortnightly, plan each fortnight. Our beginner fortnightly budget walks you through it.
• **22. Assign every bill to a payday** so one pay isn't overloaded.
• **23. Build a small buffer**, even a few hundred dollars, so a surprise doesn't go on a credit card.
• **24. Pay the highest-interest debt first** while making minimum repayments on the rest.
• **25. Check in for five minutes every payday.** Consistency beats perfection.

Where to get free help

If money is genuinely tight, you don't have to work it out alone. The National Debt Helpline (1800 007 007) offers free, confidential financial counselling in Australia. The government's Moneysmart website has free calculators and guides. If you're behind on a bill, call the provider early. Many have hardship programs and they'd rather set up a plan than chase a debt.

Making it stick

The households that get on top of the cost of living aren't the ones with the strictest rules. They're the ones that check in regularly and adjust. Start with three tips from this list, try them for a month, then add three more.

A sample fortnight in practice

Here's how a family might put these tips together over one fortnight, without any specific dollar figures because every household is different. On payday, the fixed bills for that pay are covered first, the savings transfer goes out automatically, and the grocery and fuel money moves to the everyday account. On the weekend, they plan dinners for the fortnight, check what's in the freezer, and shop once with a list. Midway through, they check the everyday account balance and adjust if they're running ahead. On the next payday, five minutes to note what went over, and the cycle starts again.

It's not glamorous, but it's the rhythm that turns a list of tips into a habit.

Tips for single mums and single-income households

When there's only one income, every surprise bill hits harder. A few extra ideas that help:

• **Check your government payment entitlements** through Services Australia. Eligibility rules change, so it's worth checking rather than assuming.
• **Line up child support or other regular payments** in your budget on the day they actually arrive, not the day they're meant to.
• **Swap with other families.** School uniforms, kids' clothes, books and sports gear swaps save real money.
• **Share bulk buys** with a friend: split a big pack of meat or nappies and both pay the bulk price.
• **Lean on free activities.** Libraries, parks, beaches, council events and free museum days keep school holidays fun without the cost.

What not to do

Some popular advice backfires:

• **Don't cut insurance completely** to save money. One uninsured event can undo years of saving.
• **Don't use a credit card to fill the gap every fortnight.** If you're short every pay, it's a sign the budget needs reworking or that it's time to talk to a financial counsellor.
• **Don't try to change everything at once.** Big overhauls rarely last. Small changes, done consistently, compound.
• **Don't compare yourself to others online.** Every household's numbers are different, and plenty of people who look comfortable are carrying debt.

A note on buy now pay later

Buy now pay later services can make costs feel smaller, but several services at once can quickly add up to a big chunk of each pay. If you use them, list every repayment in your fortnightly budget against the payday it comes out of. If repayments are piling up, the National Debt Helpline can help you work through it for free.

FAQ

General information only, not financial or tax advice. Check ato.gov.au or a registered tax agent for your situation.