Ditch the ‘lazy tax’: here’s how you can escape high premiums and save big bucks!
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The worst is not over yet – last month, the Australian Bureau of Statistics (ABS) revealed that the inflation rate spiked up to 7.8, which is the highest level it’s been since 1990. Most economists are confident that Australia won’t enter a recession, but we’re not quite in the clear. Economist Nicki Hutley says we’re going ‘to be in for difficult times’, citing the cost of living crisis that is making it more difficult for households to get by.
In times like this, it makes sense to reexamine where your money goes. Some have already adjusted their spending on necessities so that they can maximise the value of their dollars. Frozen vegetables, you say? They’re not so bad. Growing your own food? Sign us up! But many are still skipping reviewing of their utility and insurance providers, where there are potentially thousands of dollars worth in savings.
Yearly, consumers are spending billions more dollars than necessary due to the loyalty tax, which is also referred to less generously as the ‘lazy tax’. Instead of rewarding customers for their business, companies are charging higher premiums on existing subscribers while luring new consumers with great deals. The deceptive practice also affects vulnerable customers and households disproportionately.
You can watch the short clip below that expands on this and the potential savings households get when they stop paying the lazy tax.
On Reddit, some users were motivated to take charge of their expenses, especially when they weren’t getting anything out of their loyalty to businesses. One Redditor shared their savings through a post with the title ‘Decided against paying the lazy tax’.
They said: ‘I got inspired by a post here and started making calls. So far, I have saved $40 per month by switching internet providers, $2 per week on insurance premiums by clarifying occupational risk, and 0.4% off the mortgage by giving my bank a friendly call.’
Others became motivated to share some changes they’ve made as well.
A top comment said: ‘I’ve just switched phone providers (after paying Vodafone $35/month prepaid with 4GB data for years) and I've ended up going with Woolies mobile: $140 for 365 days unlimited calls/texts and 100GB, works out to about $11.60 per month with about 8GB data per month and they use the Telstra network. Plus, you get 10% off one shop at Woolies each month which if I choose to use on a big shop, say $200+ will be a $20+ saving on groceries per month. I switched it all online without having to contact Vodafone or talk to any humans.’
Another decided to just go the online route, like many people: ‘Vodafone used to be my go-to provider for international minutes, having family overseas. Now, after changing providers, I call my family through Whatsapp. I ended up saving $70-80 a month for two numbers.’
Even if you’re not a fan of Whatsapp, there are many other options –- Telegram, Signal, and Zoom are just a few of them.
A third chimed in: ‘A few months ago I did the same thing and ended up more than halving our family bill from a combined $116 a month to $50. We moved from Telstra to cheap Telstra (Belong), saving the same amount as you on the mortgage and cutting two streaming subscriptions.’
But the Redditor did not stop there: ‘We also claimed our free $250 VIC electricity bonus and the savings were then diverted into the mortgage to pay it down faster. Overall, a few quick calls and website visits were worth just shy of $1.5K a year to us in savings. Well worth the maybe 3 hours it took, all up.’
If you’re in Victoria, you might want to check out how to claim your $250 Power Saving Bonus from this site. Applications are still open until 30 June 2023.
It didn’t take as long as three hours for another Redditor to find even more savings: ‘I did one of those online quotes for my insurance. It was with the exact same company. then via their chat got them to match it to my account. I saved $200 for about five minutes of work.’
Sometimes, all it takes is a phone inquiry – or maybe a threat to leave – to get cheaper quotes. Credit: Pexels/Karolina Grabowska
Someone else shared: ‘One of my cars was insured with AAMI for three years of accumulated comprehensive insurance, and ended up having $50 in credit to reduce my premium. Instead, I generated a new quote that cost $250 less than the current renewal price which included their safe driver reward credit. So I chose the logical option which was the new quote. It only took me five minutes to save $250, well worth it.’
It also pays to review your health insurance in case you’re paying for coverage that doesn’t or no longer applies to you, like this user: ‘I lowered my health insurance premium by $50 per month since I’m not planning to have kids anymore.’
The original poster joked in response: ‘Well, you’re saving another $1m over the next 18 years too, apparently!’
If you have furry friends, you can also save from pet insurance as one Redditor suggested: ‘If you have pet insurance with Woolworths, they will give you three months free if you call saying you want to change providers.’
Frugal users are also changing their subscriptions if it means getting the same services at a lesser price. A Redditor said: ‘I’ll be changing gyms. They upped the price by $3 per week. The current cost is $40 per week but it will be $17-25 for a new gym, depending on which one I go for.’
Many services also offer discounted deals if you choose to cancel your subscription: ‘You can unsubscribe from Netflix and wait for them to send you a ‘welcome back’ offer.’
However, someone suggested just staying off them: ‘I think if you’re happy enough to unsubscribe from it and won’t actually miss it, you may as well stay unsubscribed!’
According to ME Bank, Aussies are losing $200 every year due to streaming services they don’t actually use. If you have more than one, there is an opportunity to save. You can sign up again when you have time to watch shows or movies on your to-watch list and then cancel, instead of setting and forgetting it.
In financially challenging times, every dollar saved is a win. You should reassess the premiums and subscriptions you pay at least once every year. We understand, though, that the number of services and their complicated pricing structures can make comparing quotes and deals harder. But you could spend that saved money on other necessities, or perhaps even a little treat.
What do you think, folks? Do you know any other tips that can help others ditch the lazy tax? Share in the comments below!
In times like this, it makes sense to reexamine where your money goes. Some have already adjusted their spending on necessities so that they can maximise the value of their dollars. Frozen vegetables, you say? They’re not so bad. Growing your own food? Sign us up! But many are still skipping reviewing of their utility and insurance providers, where there are potentially thousands of dollars worth in savings.
Yearly, consumers are spending billions more dollars than necessary due to the loyalty tax, which is also referred to less generously as the ‘lazy tax’. Instead of rewarding customers for their business, companies are charging higher premiums on existing subscribers while luring new consumers with great deals. The deceptive practice also affects vulnerable customers and households disproportionately.
You can watch the short clip below that expands on this and the potential savings households get when they stop paying the lazy tax.
On Reddit, some users were motivated to take charge of their expenses, especially when they weren’t getting anything out of their loyalty to businesses. One Redditor shared their savings through a post with the title ‘Decided against paying the lazy tax’.
They said: ‘I got inspired by a post here and started making calls. So far, I have saved $40 per month by switching internet providers, $2 per week on insurance premiums by clarifying occupational risk, and 0.4% off the mortgage by giving my bank a friendly call.’
Others became motivated to share some changes they’ve made as well.
A top comment said: ‘I’ve just switched phone providers (after paying Vodafone $35/month prepaid with 4GB data for years) and I've ended up going with Woolies mobile: $140 for 365 days unlimited calls/texts and 100GB, works out to about $11.60 per month with about 8GB data per month and they use the Telstra network. Plus, you get 10% off one shop at Woolies each month which if I choose to use on a big shop, say $200+ will be a $20+ saving on groceries per month. I switched it all online without having to contact Vodafone or talk to any humans.’
Another decided to just go the online route, like many people: ‘Vodafone used to be my go-to provider for international minutes, having family overseas. Now, after changing providers, I call my family through Whatsapp. I ended up saving $70-80 a month for two numbers.’
Even if you’re not a fan of Whatsapp, there are many other options –- Telegram, Signal, and Zoom are just a few of them.
A third chimed in: ‘A few months ago I did the same thing and ended up more than halving our family bill from a combined $116 a month to $50. We moved from Telstra to cheap Telstra (Belong), saving the same amount as you on the mortgage and cutting two streaming subscriptions.’
But the Redditor did not stop there: ‘We also claimed our free $250 VIC electricity bonus and the savings were then diverted into the mortgage to pay it down faster. Overall, a few quick calls and website visits were worth just shy of $1.5K a year to us in savings. Well worth the maybe 3 hours it took, all up.’
If you’re in Victoria, you might want to check out how to claim your $250 Power Saving Bonus from this site. Applications are still open until 30 June 2023.
It didn’t take as long as three hours for another Redditor to find even more savings: ‘I did one of those online quotes for my insurance. It was with the exact same company. then via their chat got them to match it to my account. I saved $200 for about five minutes of work.’
Sometimes, all it takes is a phone inquiry – or maybe a threat to leave – to get cheaper quotes. Credit: Pexels/Karolina Grabowska
Someone else shared: ‘One of my cars was insured with AAMI for three years of accumulated comprehensive insurance, and ended up having $50 in credit to reduce my premium. Instead, I generated a new quote that cost $250 less than the current renewal price which included their safe driver reward credit. So I chose the logical option which was the new quote. It only took me five minutes to save $250, well worth it.’
It also pays to review your health insurance in case you’re paying for coverage that doesn’t or no longer applies to you, like this user: ‘I lowered my health insurance premium by $50 per month since I’m not planning to have kids anymore.’
The original poster joked in response: ‘Well, you’re saving another $1m over the next 18 years too, apparently!’
If you have furry friends, you can also save from pet insurance as one Redditor suggested: ‘If you have pet insurance with Woolworths, they will give you three months free if you call saying you want to change providers.’
Frugal users are also changing their subscriptions if it means getting the same services at a lesser price. A Redditor said: ‘I’ll be changing gyms. They upped the price by $3 per week. The current cost is $40 per week but it will be $17-25 for a new gym, depending on which one I go for.’
Many services also offer discounted deals if you choose to cancel your subscription: ‘You can unsubscribe from Netflix and wait for them to send you a ‘welcome back’ offer.’
However, someone suggested just staying off them: ‘I think if you’re happy enough to unsubscribe from it and won’t actually miss it, you may as well stay unsubscribed!’
According to ME Bank, Aussies are losing $200 every year due to streaming services they don’t actually use. If you have more than one, there is an opportunity to save. You can sign up again when you have time to watch shows or movies on your to-watch list and then cancel, instead of setting and forgetting it.
In financially challenging times, every dollar saved is a win. You should reassess the premiums and subscriptions you pay at least once every year. We understand, though, that the number of services and their complicated pricing structures can make comparing quotes and deals harder. But you could spend that saved money on other necessities, or perhaps even a little treat.
What do you think, folks? Do you know any other tips that can help others ditch the lazy tax? Share in the comments below!
