At a glance

  • The ‘lazy tax’ is a hidden financial burden that costs Australians billions annually.
  • Energy bills are a prime target for the ‘lazy tax,’ with costs increasing over time.
  • Energy comparison websites like Select and Switch empower consumers to escape the ‘lazy tax’ and save money.


In the quest to manage our hard-earned money wisely, many Australians are waking up to a stealthy financial burden known as the ‘lazy tax.’ This uninvited expense silently nibbles away at your finances, demanding your attention. It’s not a government levy or an official fee; it’s a covert surcharge you unwittingly incur when you stick with the same service providers for too long.

In this comprehensive guide, we’ll delve into the intricacies of the ‘lazy tax,’ with a strong emphasis on energy providers. We’ll also discuss how energy comparison websites like Select and Switch can serve as your financial saviour by helping you evade this fiscal trap.


What is Lazy Tax?


The ‘lazy tax,’ also known as the ‘loyalty tax,’ is the extra financial burden consumers face when they fail to regularly seek better deals on services like utility bills, phone plans, home loans, and insurance policies.

The hard truth is that you might be shelling out extra money unnecessarily for these services. Simply because you’ve fallen into the trap of complacency, while it’s not an official tax, it certainly feels like one, and it’s high time we recognise it for what it is.


The ‘Lazy Tax’ Landscape: Where Does It Thrive?


The ‘lazy tax’ casts a long shadow over several service sectors:


Home Loans


Staying loyal to your mortgage provider might lead you to pay more interest than you should. Refinancing can uncover better deals that could save you thousands over the life of your loan.


Health Insurance


Health insurance premiums tend to increase over time. Regularly reviewing your policy can reveal opportunities to reduce costs without compromising coverage.




Gas and electricity bills can creep up incrementally, making monitoring your energy plan regularly essential.


Phone and Internet Plans


Rapid advancements in technology lead to frequent changes in phone and internet plans. Sticking with outdated plans can result in overpayment.


Insurance Policies


Car, home, contents, life, income protection, and trauma insurance policies often see price hikes. Reviewing and switching policies can keep your coverage up-to-date while lowering costs.


While it might seem irrational not to seek better deals, the time and effort required to shop around can deter some consumers. Loyalty to familiar brands or mistrust of new entrants can also play a role in this inertia.


How to Assess If You’re Paying a Lazy Tax?


Two simple questions can help you determine whether you’re falling victim to the ‘lazy tax’:

  • Regular Reviews: Have you reviewed or considered your current arrangements in the last two years, regardless of their significance?
  • Life Changes: Have your life circumstances changed recently?

If your answer is “yes” to either question, it’s time to take action.


The Energy Sector and the ‘Lazy Tax’


Nowhere is the ‘lazy tax’ more evident than in the energy sector. Electricity and gas rates have steadily risen, and the pricing structures can be complex. Most Australians stick with the same energy provider for years, assuming loyalty will be rewarded. However, the reality is different. Energy bills tend to increase incrementally over time, and loyalty doesn’t necessarily lead to lower costs.

Experts estimate that this ‘loyalty tax’ or ‘lazy tax’ costs Australians a staggering $11.6 billion annually, and it extends its reach into various services, including home loans, health insurance, utilities, phone/internet plans, and insurance policies.


Escaping the ‘Lazy Tax’: How Energy Comparison Websites Can Help


While the ‘lazy tax’ may seem like an insurmountable hurdle, there are effective ways to escape it and regain control of your finances. An energy comparison website like Select and Switch is one of the most powerful tools.


The Power of Comparison


Energy comparison websites provide information and help you to compare different energy providers, their electricity and gas deals and offers. You can easily complete an energy comparison to find the cheapest gas and electricity rates and plans in your location, allowing you to see the real costs and benefits.

Select and Switch, a trusted energy comparison platform takes the complexity out of understanding energy tariffs, usage charges, and discounts. You can make informed decisions without needing a degree in energy economics.


Regular Reviews


One of the key strategies to avoid the ‘lazy tax’ is to review and compare your electricity and gas rates and plans plan regularly, ideally every six months but at least once a year. Energy comparison websites can help you set up reminders for these reviews.

When you receive a renewal notice or notice a price hike, please don’t ignore it. Instead, use the opportunity to compare other energy providers and your gas and electricity prices to check if you’re still getting the best deal on electricity and gas plans.


Negotiation Assistance


With the knowledge of better offers from competing energy providers, you can negotiate with your current energy provider. Many providers are willing to match or improve upon offers from their rivals to keep you as a customer.

Energy comparison websites can guide you in approaching negotiations, ensuring you get the best possible deal.


Leverage Special Offers


While comparing electricity and gas plans and prices, If you spot a special offer advertised, approach your current energy provider to see if their best offer can match or surpass it with a cheaper rate or deal.


Scrutinise Terms and Conditions


Ensure there are no hidden surprises when comparing energy providers. Verify that you’re comparing like-for-like services, especially when accepting special offers.


Avoiding Honeymoon Periods


New customer offers can be enticing, but they often come with a catch – a honeymoon period, after which the rates can skyrocket. Energy comparison websites can help you identify these traps and steer clear of them.


The Role of Energy Comparison Websites


Energy comparison platforms like Select and Switch play a pivotal role in your quest to escape the ‘lazy tax’:

  • These platforms empower you with the information needed to efficiently compare energy providers, gas plans, and electricity plans and find cheaper deals.
  • They simplify complex pricing structures, ensuring you make informed decisions.
  • Energy comparison websites help you navigate the energy market, guiding you toward the best electricity and gas deals and highlighting potential pitfalls.


Taking Action to Save


In a world with rising energy prices, saving money has never been more critical. The ‘lazy tax’ is a subtle drain on your finances but is not invincible. By using energy comparison websites like Select and Switch, you can make informed decisions, avoid overpaying for essential services, and take back control of your financial future.


Don’t let complacency cost you. Start exploring and comparing better energy companies and their electricity and gas rates today, and say goodbye to the ‘lazy tax’ once and for all. Your wallet will thank you, and you’ll have more funds to allocate to the things that truly matter in your life.


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