4 suckiest taxes on singles and how you can beat them

Posted: 11 February 2022 1:36 pm
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Discover some easy wins to help you cut through the relationship bias of personal finance this Valentine's Day.

The game of life can feel rigged for couples at times. But from discounts at the checkout to hot trip deals, there are lots of opportunities for singles to save.

Number 1 Family health insurance

Moving to a family health insurance plan is usually a great decision for couples with kids, as your children are usually included for free. But that's not an option if you're a single parent. In fact, you often need to pay more for your first child to be covered by insurance.

Checklist What can I do?

Split your hospital and extras policies – there's no need to bundle these together. And you don't have to use the same provider for 2 separate policies. A good starting point could be ahm's Choosables Extras, which lets you pay for the cover you're actually going to use.

Number 2 Superannuation

The superannuation system can be tricky to navigate. There are lots of fiddly rules and restrictions, but one of the more helpful ones can "superannuation splitting". The catch? It's beneficial only if you're in a relationship.

Superannuation splitting lets you split your super contributions with your spouse, to help boost their balance if they're not contributing much to their super. For example, if they're taking time off to raise children. But what if you're not in a relationship?

Checklist What can I do?

One move could be to drop your super fund like a chat that's going nowhere on Tinder. You'll want to make sure you're in a high-performing, low-fee super fund and start making additional contributions yourself while you're earning an income and able to do so.

If you do this via salary sacrificing, you'll be adding more money into your super without really noticing it; plus you'll also benefit from reducing your taxable income.

Number 3 Groceries

The cost of your weekly shop can quickly spiral if you're buying for one, as there's less potential to bulk buy and save. Keeping waste to a minimum can be a challenge too. What's more, teaming up with flatmates or pals to split car or delivery costs hasn't always been an option for many of us during self-isolation or quarantine.

Checklist What can I do?

If a big love in your life is your pet, you can bag 10% off your Woolworths shop – up to a handy $50 per month – simply by holding an eligible pet insurance plan. Otherwise Woolies offers gift cards via AIA Vitality's wellness program. The membership comes with a host of added benefits like gym discounts, cashback on flights and more.

Number 4 Holidays

There are many joys to solo travel, but it's super easy to get stung in the pocket. In a hotel, you'll often pay the same for a room whether it's a single or a double (we're assuming breakfast isn't included). There's also a single supplement on cruises and other holiday packages. Hiring a car alone won't generally bag you a saving either.

Checklist What can I do?

One major perk of travelling on your own is you can generally head off whenever it suits. If you're kid-free, book outside of pricier times like school holidays. You could find an international trip with a tour company, giving you the opportunity to mix with other singles and forge new relationships (and maybe dodge that single supplement on your next adventure).

Look for flexible booking terms to protect you if plans change unexpectedly. And get travel insurance, ideally with COVID benefits. You'll find more tips in our international travel guide.

Save on your health insurance

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