02-03-2025
Aussie exposes frustrating $7,691 hidden 'tax' hitting millions: 'It's tough'
An Australian worker has highlighted the difficulty of surviving the cost-of-living crisis as a single person. New research has found singles have even been locked out of property ownership in one capital city.
Brittany Salkeld has been single for three years and she said people like her are hit with the hidden tax many don't consider. The 37-year-old has been "overlooked" for rental properties and cops bigger bills to cover alone.
"I've been paying a singles tax for years and I really felt it when I recently had to move and found it challenging as a single person on a single income to get the place I wanted," the Melbourne resident told Yahoo Finance.
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The digital marketer found the Melbourne rental market to be fiercely competitive.
She said it was frustrating to be overlooked by landlords, real estate agents, and lenders because she doesn't have a second income on her application.
New research from Compare the Market found that in Sydney single people would not be able to comfortably afford a mortgage in any of its 635 suburbs if earning the median income of $1416.
A single property owner would have to spend more than 30 per cent of their wages to get into the market, which would put them into mortgage stress.
"If I did want to buy a home, then I'd have to save up double than those in a relationship," Salkeld said.
"It's tough when an unexpected bill comes in and I have to manage my finances carefully when couples can split those bigger expenses."
Compare the Market's Chris Ford echoed Salkeld's sentiments."It's not just those mortgage repayments but insurances, rates, ongoing maintenance that might be required as well ... and an already stretched budget is really pushed to its limit," he said.
There are obvious expenses, like power bills, furnishing a home, a mortgage or strata fees that singles need to cover.
But there are also costs that aren't necessarily an everyday expense which need special consideration.
Like choosing a hotel with coupled up friends who can afford a more expensive venue as they will split a room or weighing up if you can afford the financial and emotional responsibility of getting a dog.
The differences highlight the nuance in how Australians from different walks of life are battling the cost-of-living crisis.
Salkeld has found ways to cut costs and tap into the collective through platonic relationships.
"I've been able to carpool with a colleague to save money on travel, so I have found support in friends," she said.
"It's the price I'm happy to pay to live alone and not settle for the wrong person."
The Australian Bureau of Statistics has estimated that 3.4 million to four million Aussies will be living by themselves by 2046, which is a 30 to 50 per cent increase compared to 2021.
iSelect collected data on singles and couples without children and found those on their own are forking out a lot more.
The data found that childless single people, otherwise known as SINKs (single income, no kids), on average pay 41 per cent more for common household bills, like rent, as they can not share with another person.
Single: $2,198 per month
Each member of couple: $1,558 per month
INKs save around $1,089 less every year compared to DINKs, according to the study.
iSelect found that finances were tighter for SINKs as they were more concerned about their finances compared to DINKs.
However, single people were less inclined to make cutbacks.
The research claimed couples were more likely to plan for big life decisions like starting a family or buying a house so they would be more willing to strip back their spending.
Those in relationships might also have to second-guess their spending even if they're not on a budget.
"When you're in a couple, these choices are no longer a solitary decision and suddenly you're checking the shared account to see if you can get that extra cocktail," iSelect in to access your portfolio
