What Is a Utility Bill?

Utility bills may not be the most glamorous expenses, but they deserve your attention. They can add up to hundreds of dollars per month, and can create serious problems if not paid on time. Read on for utility bill examples, how you can save money on yours and what to do if you can’t pay.

A utility bill is a statement of the amount a household (or business) owes for essential services or utilities, like electricity, water, gas or council rates. They can be issued monthly or even quarterly, depending on the provider.

Depending on how you define utilities, you could also add sewage, rubbish and recycling, as well as TV, internet, phone and streaming services to that list. For people living in remote parts of the country, phone, internet and other telecommunications charges are often deemed essential services.

A utility bill lists the customer’s name, address and account number. It also states the amount owed and the due date, as well as guidance for how to pay.

Utility bills typically give information about your usage of the service, too. A water bill, for example, would list the amount of water you used during the billing period and may show how that amount has changed over the last several months.

How much utilities cost varies widely depending on the service, provider, location and usage.

Types of utility bills

These are the most common types of utility bills in Australia.

Electricity bill

Issued by energy providers, this bill covers the cost of being connected to an electrical grid and consuming energy.

To save money on your electric bill, try to be more efficient with your appliances and devices. Investing in a programmable or “smart” thermostat that will adjust temperatures for you when you’re home or away can save money on your electric bill.

You might also want to wait until you have full loads before running your dishwasher and washing machine to reduce the number of times you use them. Or try a smart power strip, which turns off electricity to the items you aren’t using.

🤓 Nerdy Tip

Check out the Energy Bill Relief Fund and the Household Energy Upgrades Fund to see if you can lower your costs. These programs help households and businesses by providing rebates and discounts on energy services.

Water bill

Water bills are issued by utility companies for consuming water at a home or business.

To lower your water bill, check for and fix any leaks in faucets, showerheads, sinks and toilet valves. You may also want to upgrade your appliances to more efficient ones to lower your costs in the long run. As a bonus, most states and territories have schemes that help to cover the cost of energy-efficient home and appliances.

Tweaking your habits can also help. Shortening your showers and turning off the tap while brushing your teeth cansave water—and money. And, rethink hand-washing your dishes each night. If you have a lot of dishes to wash, consider running your dishwasher instead.

Sewage bill

Sewage charges are often part of your water bill, and cover the maintenance of local sewage and stormwater drains.

Natural gas bill

Gas suppliers charge residents to connect to a gas mains network and use natural gas to fuel things like appliances, heating and hot water sources.

Given that much of your natural gas bill likely goes toward heating and cooling the house, you can save money by monitoring your thermostat. In the winter, allow for lower temperatures while you’re away or asleep. In the summer, allow for warmer temperatures.

Some Australians use liquid petroleum gas, or LPG, in their homes and businesses, so they may receive bills for restocking or refilling LPG cylinders at their properties.

Council rates

Homeowners are typically charged council rates, which are levied by the local council to pay for maintenance and improvements to various services. These may include library and public health services, and the upkeep of public parks and pools.

Since council rates are set in stone, there isn’t any room for negotiation. Instead, focus on saving money on your other utility bills by comparing providers and reducing usage.

Utility bills can stack up, especially if you own property,, so it’s helpful to understand how much you’re spending on them. Consider tracking these bills and other expenses in a budget app.

And give the 50/30/20 rule a try. This type of budget divides your monthly take-home income this way:

50% toward needs, like those utility bills, as well as rent or mortgage payments and groceries.
30% for wants, such as meals out and vacations.
20% toward savings for the future, such as emergency funds and retirement accounts, as well as paying down debt.

There are several other types of budgets if this breakdown doesn’t work for you.

How to budget for your utility bills

Utility bills can stack up, especially if you own property, so it’s helpful to understand how much you’re spending on them and budget accordingly.

Give the 50/30/20 rule a try. This type of budget divides your take-home income into three sections:

Needs: 50% should be allocated to the things you need, like those utility bills, as well as rent or mortgage payments and groceries.
Wants: 30% gets allocated to the things you want, such as meals out and vacations.
Savings and debts: 20% should be allocated toward saving for the future, such as emergency funds and retirement accounts, as well as paying down debt.

First, track how much your essential bills cost you every month, and add them to the other necessary outgoings like groceries, car payments and rent. This should equal 50% of your take home pay.

There are several other types of budgets if this breakdown doesn’t work for you.

How much do Australians spend on utilities?

The average daily amount that Australians spend on electricity, household gas and phones is $6.74, according to the February 2024 Beforepay Cost of Living Index[1]. This equals roughly $202 a month (30 days).

Combine that with the average daily amount spent on groceries, petrol and car maintenance costs, according to the Beforepay Index, and the monthly outgoings increase to around $885.

Australia’s median rent is $627 per week, according to recent research from CoreLogic, which is roughly $2,717 a month[2]. This adds up to an estimated monthly cost for renters of $3,602 for ‘essentials’.

What if you can’t pay your bills?

If you don’t pay your utility bills, the provider may eventually shut off the service. You also risk late fees and damaged credit by missing a payment. But, if the costs are too much to handle, you have options:

Call the customer service line of your provider. You can likely find this number on your bill or through a quick online search. Explain your situation and request help — providers are legally required to offer help in the event of financial hardship. The company may lower your bill, give you an extension or make concessions. The same goes for council rates — if you’re struggling to pay yours, reach out to your local council to ask about your options.

Apply for a utility rebate or voucher. National agencies offer vouchers for utilities like electricity, water and phone usage. You can find a list of agencies by state on the moneysmart.gov.au website.

Check if you’re eligible for Centrepay. If you receive Centrelink payments, you might be able to deduct bills and other expenses via Centrepay. You can set up regular deductions to ensure you don’t miss utility payments. You also may qualify for an advance deposit on your usual Centrelink payment.

Look into a no-interest loan. The No-Interest Loan Scheme, or NILS, is offered through Good Shepherd. If you’re eligible, you can use the funds to pay for essentials like council rates and car payments.

Speak to a financial counsellor from the National Debt Helpline. These counsellors offer free, confidential help for people dealing with money issues, and they can negotiate with creditors on your behalf. To be connected to one, call the free National Debt Helpline on 1800 007 007, or use the site’s online chat function. Aboriginal and Torres Strait Islander peoples can also call the free Mob Strong Debt Helpline on 1800 808 488. These agencies typically take calls on weekdays from 9.30 a.m. to 4.30 p.m, Sydney time.

If you’re in the United States, read this article on the NerdWallet US site.

Beforepay, “February 2024 Beforepay Cost of Living Index,” accessed October 14, 2024.
CoreLogic, “Rent growth picked up in the start of 2024, taking rents to new record highs,” accessed October 14, 2024.

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