Are You Paying a Loyalty Tax? Here’s How to Save!
The total cost of loyalty taxes across various sectors in Australia could be as high as $3.6 billion annually!
Today, we want to highlight an issue that many of us face but often overlook: the loyalty tax. This is the extra cost you might be paying for staying loyal to your current service providers, whether it’s for life insurance, banking, loans, general insurance, superannuation, private health insurance, electricity, or gas.
The Problem: Many long-term customers end up paying higher premiums or rates compared to new customers. For example, the ACCC has found that loyal bank customers often pay more. Borrowers with home loans over 10 years old pay an average of 1.04% more in interest compared to new borrowers. This trend isn’t limited to banking; it extends to various sectors, including insurance and utilities.
Tips to Help You Save:
- Compare: For interest rates on your loans and life insurances, reach out to us to help compare. For utilities like electricity, gas, internet, mobile phone plans, and health insurance, use a comparison site.
- Negotiate: Don’t hesitate to contact your provider and ask for a better rate. Highlight your loyalty and see if they can match or beat competitors’ offers.
- Switch if Necessary: If your current provider isn’t willing to offer a competitive rate, consider switching to a new one. Just ensure you understand any potential costs, features, or implications of switching.
How We Can Help: We understand the importance of getting the best value for your money. Our team is dedicated to helping you find the most competitive rates across all your services. Whether it’s life insurance, loans, or even superannuation, we’re here to assist you in making informed decisions that can save you money.
So, if you’ve been thinking it’s time to review your home loan rates, life insurance, income protection, or even superannuation, contact us with “compare” and we can guide you through your options and outline the next steps.
We hope you enjoyed reading this blog post and found it useful. If you have any questions, comments, or feedback, we would love to hear from you.
7Wealth Pty Ltd ABN 44609210246 is a Corporate Authorised Representatives and is authorised through Cobalt Advisers Pty Ltd ABN 64 628 654 099 who is an Australian Financial Services Licensee 512550. 7Wealth Pty Ltd is a Credit Representative of Australian Finance Group Ltd ABN 11 066 385 822 (AFG) Australian Credit Licence 389087.
This blog contains information that is general in nature. It does not constitute financial or taxation advice. The information does not take into account your objectives, needs and circumstances. We recommend that you obtain investment and taxation advice specific to your investment objectives, financial situation and particular needs before making any investment decision or acting on any of the information contained in this document. Subject to law, Cobalt Advisers Pty Ltd nor their directors, employees or authorised representatives, do not give any representation or warranty as to the reliability, accuracy or completeness of the information; or accepts any responsibility for any person acting, or refraining from acting, on the basis of the information contained in this document.
