Major hikes to several household bills could leave Aussie families hundreds of dollars out of pocket in the coming months, according to analysis from Compare the Market.
Compare the Market’s Sarah Orr said 2026 was shaping up to be “another tough year” for Aussies managing a budget, with health insurance premiums and electricity prices set to increase, along with experts predicting interest rate rises on the horizon.
Health insurance premium hikes will come in from 1 April, while electricity price changes will come into effect from 1 July, according to Compare the Market.
Electricity prices are expected to rise from July, adding to the cost of living. Picture: iStock.
Analysis from Compare the Market shows that just one rate hike of 0.25 per cent could have a significant impact on household expenditure, adding $94 to repayments on a $600,000 loan.
That is a total of $1,128 a year.
On a $1m mortgage, homeowners could be paying an extra $157 after one rate rise.
According to Ms Orr, “now is the time” for homeowners to negotiate better deals.
“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,” she said.
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A cash rate increase from the RBA could hit homeowners hard. Picture: NewsWire/John Appleyard.
For power bills, new pricing “safety nets” will take effect from July, though Compare the Market notes that some consumers will get an early glimpse of potential changes when regulators release draft decisions in March.
According to Ms Orr, millions of Aussies are leaving money on the table by staying loyal to their electricity providers.
“Latest figures show that 73 per cent of households with the power to switch to cheaper deals still haven’t made a change that could potentially save them hundreds of dollars,” she said.
According to the ACCC’s Electricity Market Inquiry report from last year, Aussies who stay loyal to their electricity provider pay $221 more on average each year than those on new plans.
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Health insurance premiums are expected to rise from April. Pictures (top to bottom): NCA NewsWire/Christian Giles; NCA NewsWire/Monique Harmer.
For the millions of Aussies with private health insurance higher premiums are expected from April 1, with the Federal Government currently reviewing proposed price increases from health insurers.
According to Compare the Market’s analysis of health insurance premiums, an increase of between 4 and 5 per cent would add $105.60-$132 to an average hospital policy of $2,641.
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Compare the Market’s Sarah Orr. Picture: Supplied.
For someone with an average combined policy that includes hospital cover and extras, costing $3,560, a 4-5 per cent increase would add $142-$178.
“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.”
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