While Australians struggle with the financial burden due to prolonged high inflation and interest rates, many end up losing hundreds of dollars annually on unused subscription services. A significant number even forget that they’ve subscribed in the first place.
Research released by Westpac this week revealed three in every 10 Aussies lose $600 a year on duplicate apps and services they don’t use.
The average consumer unknowingly spends about 20% more on subscriptions than they think, which amounts to roughly $14 monthly or $168 a year.
The study highlights that a primary reason for overspending is failing to cancel a service after a trial period. Additionally, nearly one-third of consumers reported paying for subscriptions they no longer remembered.
A similar proportion (31 per cent) said they found it too difficult to cancel certain services.
Westpac also found Australians are spending $141 extra a year on subscriptions, an increase of 11.3 per cent from 2024.
Gaming subscriptions are particularly costly for Australians, averaging $55.50 each month ($666 annually). Following closely are video streaming services, costing $21.63 per month ($260 annually), and music streaming at $16.98 monthly ($204 a year).
At the same time, Westpac also found its customers are spending a whopping $2200 a year on takeaway food.
“Our data suggests customers are willing to spend on what makes life easier, with a significant uplift in spend on food services,” McCann said.
“But there’s also growing awareness around value.
Although expenses on home and utility subscriptions have seen the second-highest increase, customers reported they received the least value from these services.
