The cost-of-living crisis is not easing – times are still tough for many Aussies.
Just 7 per cent of Australians believe the cost-of-living crisis has improved over the past year, despite months of financial resilience and government support, according to Compare the Market’s 2025 Household Budget Barometer.
Getting savvy
Adding to the gloomy outlook, just 22 per cent felt optimistic about the future of the economy, despite progress on wrangling inflation and a lower cash rate.
While budget pressures persist, the nationally representative report reveals that Australians are actively countering rising costs by seeking out greater savings.
Analysis found that nearly three-quarters of Australians surveyed (73 per cent) had shopped around for a better deal in the past 12 months.
Year-on-year, there’s been a 2 per cent increase in people searching for cheaper car insurance (up to 47 per cent in 2025), a 4 per cent jump in people comparing their home and contents cover (up to 32 per cent), and 4 per cent more people switching and saving on their electricity plans (up to 34 per cent).
More findings
Meanwhile, the report boasts other insights around financial pressures, including:
- Average insurance premiums in Australia’s five largest capitals surged in the 12 months to September 2025, with the cost of covering a four-bedroom home up nearly 23 per cent, and a typical car up almost 18 per cent.
- Credit card debt among survey respondents rose 9 per cent year-on-year, while Buy Now, Pay Later usage jumped 8 per cent.
- The median quarterly electricity bill held steady at $350 in 2025 (or $1,400 annually), unchanged from the median spend in 2024.
- One in five Australians surveyed (21 per cent) rated groceries as their most worrisome household bill, with the average person spending $10,304.32 on groceries each year.
It’s great to see that comparing, switching, and shopping smarter have become key tools helping Australians navigate a tough few years of financial strain. Prices aren’t coming down – so we’re simply getting better at finding value ourselves.
The report also highlights the growing role of intergenerational support, with grandparents helping their adult children, and young people offering a lifeline to ageing family members.
While the government has chipped in with rebates for energy and childcare, the most meaningful support has come from individuals stepping up for their families. Tough times often bring out the best in our communities – but everyday Aussies shouldn’t be left to carry such a heavy load alone. We need stronger action from governments and regulators to step in and hold companies to account when price hikes go too far.
