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Inflation is back in the spotlight, and increasing costs are a worry for many Australians. As a result of the conflict in Ukraine and the severe floods in Australia, transportation and logistical challenges have become much worse during the epidemic. There are already rumblings of price increases in numerous areas, including electricity and gas prices that will likely hit Australian households in July this year.

Australia’s annual inflation rate soared to 5.2% in 2022, above market predictions of 4.7% and it is the highest since GST was introduced in the early 2000s. Transport costs are rising day by day due to increase in fuel prices, while food and non-alcoholic beverage costs rose by 4.4% and health care costs rose by 3.6%. Since prices are going up faster than people’s nominal incomes, they will be able to buy less and less over time.

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Here are some tips on how to save money in Australia in light of the present economic scenario.

1. Choose the right energy plan:

Comparing energy prices is a simple and effective strategy to lower your monthly utility bills without compromising your lifestyle. Initiatives offered by the Australian government provide effective unbiased energy price comparisons free of charge. They are able to compare all of the energy suppliers in your area and help you get the best deal. Once you have a recent bill, and some information about your home to utilise these services you can probably save a few hundred dollars on your energy costs by doing a simple comparison in 10 to 15 minutes.

If you are living in Victoria, head to Vic Energy Compare site or, if based elsewhere in Australia, head to Energy Made Easy. It’s worth noting some state governments, such as Victoria, have announced an extra $250 for those who compare their energy in the 2022 budget. So be sure to check again in the near future (from July 2022) to take advantage of that

Energy Made Easy

A bit more information on your electricity bill breakdown:

The price per unit of energy you use is multiplied by the quantity of energy you use to arrive at your monthly bill. Depending on when you use your power and the kind of contract you have, you may pay more or less per unit. In addition, the cost of different energy supply components might vary depending on where you reside. This is because each state and territory make their own judgments regarding these expenses.

Gas and electricity bills include two components: a supply fee and a use charge (also referred to as a “fixed” charge or a “service charge”) (a consumption or variable charge).

The cost of delivering electricity or gas to your home (even if you don’t use any) is included in the daily supply price, which is shown on your statement as a daily total or in cents. Use charges are shown on your invoices as cents per kilowatt hour (c/kWh) for electricity and cents per mega joule (c/MJ) for gas, and represent the cost of the energy you use.

Sample electricity and gas invoices are available on Energymadeeasy.gov.au to assist you in understanding the terminology on your energy bills. Use this website to choose the right plan to save money.

2. Use apps to save money at petrol stations:

As Russia’s conflict rages in Ukraine, petrol prices at the pump have climbed to record levels, and relief hasn’t arrived as many had hoped, despite the fuel excise tax being slashed in the Federal Budget. If you use a petrol pricing app before filling up, you may learn that a petrol station only a kilometre away has price discrepancies of up to 40 cents per litre. In a matter of seconds, you can compare the costs of fuel throughout Australia.

Use apps like PetrolSpy and FuelMap to compare the prices of fuel and save money. Enter your postcode or region and the kind of fuel you’re searching for to compare local petrol costs. The various apps will show you local petrol prices, so you can see which one is the most cost-effective for you. Over time, checking in and utilising this tool often may help you save money in your petrol budget.

It’s also worth checking the fuel price cycles the ACCC publishes for each state to work out when the fuel price is at the cheapest point of the fuel cycle.

3. Compare health insurance plans:

Private health insurance premiums are a major consideration when deciding on a policy. Understanding how private health insurance prices are determined and what you can do in order to keep your rates down is critical in this regard. Prices for private health insurance vary widely depending on your policy type, amount of coverage, and geographic location. As an example, the monthly premium for a standard hospital insurance in NSW without extras coverage ranges from $101 to $346. In contrast, the monthly premiums for extras plans vary from $16 to $202.

There are four tiers of hospital insurance coverage, and the amount of your monthly premiums will be decided by the one you choose. Depending on your insurance tier, you should anticipate to spend anywhere from $101 to $195 per month on average. Basic, Bronze, Silver, and Gold are the four sorts of hospital plans, with Basic being the cheapest and Gold level coverage often costing more.

It is customary to be required to pay a deductible upon admission to the hospital under a hospital policy. Also known as your health insurance deductible, you pay this amount in addition to the deductible. As your deductible grows, so does the cost of your health insurance. In most cases, you may pick between a $0, $250, $500, or $750 excess for a single adult, depending on your insurance provider. You may also be required to pay a co-payment, which is the amount you agree to pay for each day of your stay in the hospital, with certain insurance companies.

All Australian health insurers are obliged by law to give information of each of their products to the Private Health Insurance Ombudsman in order to simplify comparisons of health insurance plans. Every health insurance policy in Australia may be found on PrivateHealth.gov.au, as well as the policy’s Private Health Information Statement (PHIS).

It doesn’t matter where you reside in Australia or what kind of coverage you desire. More precise outcomes may be obtained, but they will take longer if you choose specialised hospital services or general therapies. Check out the restricted insurers to determine whether you’re eligible for any of their coverage.

4. Compare car insurance plans:

Analysis of plans in Canstar’s database shows that the cost of a complete coverage may vary dramatically. A cheaper insurance provider, specials, and offers, such as online discounts, might help you save money on your coverage. If you’re unsure about a new policy’s amount of coverage, double-check the provider’s disclosure papers, such as the Product Disclosure Statement and Target Market Determination, and reach out to the insurer directly. You may compare vehicle insurance coverage using Canstar’s database and the organisation’s most current Star Ratings.

5. Compare grocery prices:

A trip to the store is becoming more difficult because of rising food costs caused by inflation. You may end up feeling like you have to exchange all of your goods to purchase fresh fruit. Everyone has the right to a healthy diet, and understanding how to save money on groceries might be the key to achieving that right now.

There are a number of applications that may help you save money on your weekly grocery bill. Apps like Wiselist can be used to construct shopping lists to not only check which shops carry your preferred goods, but to see the total price at each location.


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