Australians lost $6.7 billion in 2025 by not switching providers. The loyalty tax on energy, mobile, broadband, and insurance costs households $1,700-$2,000+ per year.
That's the hidden cost of customer inertia. Across energy, broadband, mobile, and insurance, millions of Australian households pay a silent premium every year -- simply because they haven't switched.
The ACCC calls it the "loyalty penalty". Finder calls it "the loyalty tax". Whatever the name, the numbers are staggering:
The ACCC found that over 80% of Australian households are on plans priced above the best available offer. Households on plans older than 12 months pay an average of $238 more per year than those on newer offers. The total loyalty tax in the energy sector alone was $2.9 billion in 2025.
Bill Hero addresses this directly -- automatically comparing every bill and notifying you when savings exceed your personal threshold. Average first-switch savings: $380 per year. Money-back guarantee.
The average Australian spends $54/month on mobile, but plans with the same data allowance start at $42/month. That $12/month gap, multiplied across millions of users, adds up to $2.8 billion in overpayment. Telstra, Optus, and Vodafone have all raised prices every year since 2022 -- often adding data nobody asked for.
Consumers on lower speed tiers (NBN 12, 25) pay the biggest loyalty penalty -- up to $445/year more than the cheapest equivalent plan. With NBN's 2025 speed upgrades, millions of households are now on outdated plans they haven't reviewed in years.
Canstar research found households that don't shop around miss out on an average of $819 per year. In Queensland, the saving jumps to $1,072. The ABC has documented cases of premiums doubling year-on-year with no claims and no explanation -- solved instantly by switching providers.
Comparison sites consistently find savings of $300-$600 for drivers who switch. One Melbourne resident told the ABC she saved $600 in 30 minutes -- and upgraded her coverage in the process.
While a smaller market, gas switching savings follow the same pattern. Households that haven't reviewed their gas plan in over a year are almost certainly overpaying.
The total loyalty tax across all household bills? Well over $10 billion annually. Per household, that's $1,700-$2,000+ in foregone savings -- year after year.
The good news: most of this is fixable in under an hour. Comparison sites exist for every category. But they're one-time tools -- you have to remember to check. Bill Hero automates the process for energy, Australia's biggest household bill category, so you never have to think about it again.
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