Singles Pay $7,800 Annual ‘Tax’ as Housing Costs Surge 5.7% in Australia

Single Australians are paying thousands of dollars more each year on housing than couples who split costs, a penalty experts call the ‘singles tax’. Housing costs rose 5.7% in the latest inflation data, the biggest driver of price growth, while single-person households now make up 27.5% of all Australian homes. The Australian Bureau of Statistics estimates 3.4 to 4 million Australians will live alone by 2046, a 30-50% jump from 2021.

Why singles pay more on rent and utilities

When one person bears the full cost of rent, electricity, water and council rates, those expenses don’t scale down. A couple splits a $400 weekly rent; a single person pays all of it. Housing costs now consume a larger share of single income earners’ budgets as inflation outpaces wage growth. For pensioners on fixed Centrelink payments, the squeeze is acute. Louise Taylor, 70, a Brisbane renter on the Age Pension, says she was repeatedly rejected for rentals and forced to accept a small duplex. She fears the next rent rise will push her into a share house or force her to move in with her daughter.

Single-person households are growing fast

The share of Australians living alone has jumped from 23.9% in 2006 to 27.5% today. In 1981, it was just 18%. This shift means more people face the singles tax at the exact moment housing affordability has collapsed. The Australian Bureau of Statistics projects single-person households will reach 3.4 to 4 million by 2046, a 30-50% increase on 2021 levels.

Renters face steeper discrimination than buyers

Single renters report being passed over for couples, who landlords view as more stable tenants. Single parents can access the Australian Government 5% Deposit Scheme with a 2% deposit and no Lenders Mortgage Insurance, but single adults without dependents get no such help. For those buying, the gap between single and dual incomes is stark. One woman’s mother bought her first home on a single income decades ago; her daughter could not do so on two incomes today, reflecting how far housing prices have outpaced wage growth.

What happens next for renters and buyers

With housing waiting lists stretched and rental assistance limited, single Australians face mounting pressure. Centrelink recipients and disability pensioners are hit hardest. Advocacy groups are calling for targeted rental assistance and more affordable housing stock, but no major policy shift has been announced. The cost gap between single and couple households will likely widen as housing inflation continues to outpace general inflation.

Final Thoughts

Single Australians pay a steep hidden cost on housing that couples avoid by splitting expenses. As single-person households grow to nearly 3 in 10 homes and housing costs keep rising, the pressure on renters and first-time buyers living alone will intensify without targeted policy support.

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