Australian families could be left hundreds of dollars out of pocket due to a series of major changes to household bills in the coming months, according to Compare the Market.
Potential interest rate increases from the Reserve Bank of Australia, health insurance premium hikes from 1 April and electricity prices changes from 1 July are set to compound money stress in the months ahead.
With global uncertainty and stubborn inflation mean 2026 is shaping up to be another tough year for Aussies managing a budget according to Compare the Market’s Sarah Orr.
“Most households won’t notice until the bills arrive but the decisions shaping your budget in 2026 are already being made behind closed doors,” Ms Orr said.
“The message is simple: vote with your wallet. Don’t take these hits lying down and never accept a higher price without doing your homework first.”
Interest rates
This time last year, Australian homeowners were looking forward to a series of cash rate cuts. Now, it seems we’re through the looking glass – and the relief of 2025 may be reversed if inflation can’t be tamed.
Analysis from Compare the Market shows that even a single rate increase could have a significant impact. A hike of 0.25% could add $94 to repayments on a $600,000 loan -ballooning out to $1,128 a year.
Ms Orr said while homeowners can’t count on the RBA to deliver cheaper mortgages, they may be able to negotiate better deals for themselves.
“Now is the time to weigh up your options,” Ms Orr said. “Check your current rate, team up with a good broker, and see whether you may be able to create a rate cut on your own by switching lenders.”
| Loan size | Monthly impact of a 0.25% rate increase | Monthly impact of x2 0.25% rate increases (0.50%) | Monthly impact of x3 0.25% rate increases (0.75%) | Monthly impact of x4 0.25% rate increases (1%) |
| $500,000 | $79 | $158 | $239 | $320 |
| $600,000 | $94 | $190 | $287 | $384 |
| $750,000 | $118 | $237 | $358 | $480 |
| $900,000 | $142 | $285 | $430 | $577 |
| $1,000,000 | $157 | $317 | $478 | $641 |
| *Calculations assume an owner-occupied loan with a variable interest rate of 5.43% that is increased by 0.25% a month. It assumes a 30-year loan term, with no ongoing fees. This does not take into account the reduction of the loan balance over time. | ||||
Electricity prices
New pricing “safety nets” will take effect from July, but some consumers will get an early glimpse of potential changes when regulators release draft decisions in March.
The Default Market Offer (DMO) caps the prices that energy retailers can charge for standing offer electricity plans in New South Wales, South East Queensland, South Australia, and the ACT.
In Victoria, the Victorian Default Offer (VDO) serves as a benchmark for fair pricing on standing offer electricity plans, helping consumers assess whether they’re getting a good deal. Electricity prices are regulated in other parts of the country.
“These benchmarks exist to protect consumers, but that doesn’t mean we should rely on them,” Ms Orr said. “Latest figures show that 73% of households with the power to switch to cheaper deals still haven’t made a change that could potentially save them hundreds of dollars.”
A recent ACCC report found that Aussies who stay loyal to their electricity provider pay $221 more on average each year than those on new plans. Around 2.5 million Australians are paying higher prices when cheaper plans are available. It’s throwing money down the drain unnecessarily.
Health insurance premiums
Millions of Australians with private health insurance are expected to face higher premiums from 1 April, with the Federal Government currently reviewing proposed price increases from health insurers. Experts believe it could potentially be the biggest increase in years.
Compare the Market analysis of health insurance premiums* shows an increase of between 4-5% would add between $105.60 – $132 to an average hospital policy of $2,641.
For someone with an average combined policy with hospital cover and extras costing $3,560, a 4-5% increase would add $142- $178.
The industry average price hike has not exceeded 4% since 2017 – nine years ago – and last year’s industry average increase was 3.73%.
“If your premium goes up on 1 April, don’t accept it without checking your options,” Ms Orr said. “Look for similar cover for less or see if a lower level of cover could provide essential protection at a more affordable price.”
*Averages based on policies purchased via Compare the Market between January and November 2025. Figures include rebates and age-based discounts as well as lifetime health cover loading where applicable.
For more information, please contact:
Phillip Portman | 0437 384 471 | [email protected]
Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.
