Stop Paying the Lazy Tax:
Your Easiest Financial Goal for 2026

In Australia, the lazy tax isn’t a real government tax — it’s a term used to describe the extra money people pay when they don’t shop around for better deals on everyday expenses like electricity and gas services, insurance, loans, superannuation, or phone plans. Lazy tax is a short-term set-and-forget plan that can have negative long-term financial implications. Examples of the lazy tax, also called the loyalty tax, include:

• Staying with the same electricity company even though cheaper rates are available.
• Not renegotiating your mortgage interest rate.
• Ignoring better deals on mobile phone or internet plans.

There are hidden costs of inaction when you don’t keep updated and informed of your current financial situation. In 2023 alone, Aussies paid around $4.5 billion in lazy tax (loyalty tax), averaging $331 per person across electricity, mobile, and broadband services. On mortgages and insurance, failing to switch can cost households thousands of dollars annually. Although not directly tax planning, switching to a better deal will result in tax-effective savings over the course of the financial year.

Now is the right time to improve your financial position in 2026 by investigating potential savings. For example, a GoSwitch energy provider price comparison search puts the power in your hands for a fresh start, where small changes have a big impact.

Step 1: The Spending Detective – Where Does Your Money REALLY Go?

Unlike government taxes (which fund public services), lazy tax money flows to private companies:

Banks & lenders → Higher interest payments on loans and lower interest on savings accounts.

Insurance firms → Premiums that creep up over time for households and small businesses.

Utility providers → Extra unnecessary charges for electricity, gas, or broadband.

Telecom companies → Outdated mobile plans with inflated costs.

Superannuation → Staying with your current super fund without comparing super contributions, fees, or returns.

Step 2: Subscription Scrutiny – Are You Paying for Ghosts?

There is a hidden world of unused or forgotten subscriptions that can quietly drain people’s wallets. Let’s unpack this idea:

Invisible drain: Many people sign up for free trials or niche services, then forget to cancel. These charges continue monthly, often unnoticed.

Bundled confusion: Utilities, Streaming platforms, cloud storage, software tools, etc. often overlap. You might be paying twice for similar services.

Psychological trap: Subscriptions are sometimes sneakily designed to be out of sight and out of mind. These small recurring charges feel harmless, but they add up over time.

Step 3: Interest Income – Are You Leaving Money on the Table?

Interest income is accrued via bank savings accounts, extra contributions into super accounts, income tax refunds, term deposits, capital gains, non-concessional contributions, government bonds, money markets, and other sources. You might be missing out on interest income in several ways:

Low-Yield Accounts: Many people leave large balances in savings accounts that earn little or no interest.

Not Shopping Around: Banks and credit unions often offer very different rates — failing to compare means lost income.

Ignoring Alternatives: Safe investments like government bonds or high-yield savings accounts can outperform traditional savings.

Inflation Impact: If your interest rate is below inflation, your money is effectively losing value.

Your lazy tax action plan should be a low‑effort way to stay on top of taxes without getting buried in paperwork or stress. Here is a checklist to minimise effort while keeping you compliant and prepared.

Action 1: Automate Your Savings (The Ultimate Lazy Tax Hack). Link savings accounts and combine power bills in a single invoice.

Action 2: Purge subscriptions annually for financial efficiency and peace of mind.

Action 3: Optimise high-interest accounts to make your money work harder for you.

Action 4: Negotiate and consolidate electricity services and natural gas services using the GoSwitch price comparison service.

There are a range of factors that determine the price you pay for electricity services. These include:

Usage Rate and Supply Charges: Electricity usage rates are charges from your local electricity retailer. Supply charges are governed by major electricity providers and distribution networks.

Conditional discounts and Bill Credits: Bill credits can come from promotions, rebates, or renewable energy programs. Annualising them offers consistency for customers, fairness across seasons, and more accurate financial planning.

Time of Use vs Single Rate: Time of use power usually includes peak, shoulder, and off-peak hours with variable cost. Single rate power is the same 24/7.

Fees and Conditions: These often include incentives, discounts, and penalties, such as exit fees, late payment fees, and new contract benefit periods.

The good news is that GoSwitch can help you switch to a better energy deal in only 10 minutes. Better still, the process is 100% free and the savings are all yours to keep.

Step 1: Grab these details from your bill

• Distributor name
• Meter type
• Usage in kWh
• Supply charge
• Tariff name if shown
• Postcode

Step 2: Run a comparison and shortlist two or three options

Use the GoSwitch energy retailer price comparison search tool to compare the total estimated annual cost from leading Australian energy retailer plans.

Step 3: Switch to a better electricity plan for 2026

Switching is usually straightforward, and the savings begin immediately. Set a calendar reminder to compare retailers again in 6 to 12 months to ensure you always get the best available deal for household or business energy supply and usage.

Will my power go off when I switch

There will be no interruption to your power supply when you switch energy providers using the GoSwitch service. Our energy experts can assist you every step of the way, at no charge.

How long does switching take

The paperwork can be completed almost instantly. You will probably need to wait until the end of your current billing cycle before the switch to your new plan takes place.

Can I switch if I rent

You certainly can. Renters have the same options as homeowners for energy services in Australia’s deregulated market.

What if I have solar

GoSwitch partners with leading electricity retailers who include competitive solar feed-in tariffs (FITs) as part of their contract plans.

Is the cheapest plan always the best plan

The cheapest plan may be the best plan for some people, although a better strategy is to focus on a plan the best suits your specific household, personal circumstances, and lifestyle.