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Budget Categories List for Australian Households

A budget is only as useful as its headings. Here is a plain list of budget categories for an Australian household, sorted into fixed, variable and annual costs, so nothing important gets left out.

A budget categories list is the set of headings you sort your spending into, such as rent, groceries and car costs. If you want to use one straight away, the free fortnightly budget template for Excel already has the 23 categories listed below, with planned and actual columns for each pay.

You do not need a perfect list. You need one that covers where your money really goes, is short enough to keep up, and has a home for the bills that only arrive once or twice a year. This guide shows how to build that list for an Australian household.

Fixed, variable and annual costs

Most categories fall into one of three groups, and the group tells you how to budget for it:

• Fixed costs are about the same every time, like rent, a phone or internet plan and loan repayments. You know the amount, so plan it exactly.
• Variable costs change from pay to pay, like groceries, fuel and takeaway. Plan an amount, then track what you actually spend against it.
• Annual or irregular costs arrive in big, occasional bills, like car rego, council rates, insurance and school costs. The usual fix is to set a small amount aside each pay so the bill is already covered when it arrives. Our guide to budgeting for annual bills and the sinking funds guide explain how.

Some categories mix groups. Electricity, for example, has a fixed supply charge and a variable usage charge, so the total moves with the season.

A budget categories list for Australian households

This table uses the categories in the free fortnightly budget. The "usually" column is a general guide, because your own bills may differ.

A general guide only. Where an item sits depends on your own household and bills.

Australian costs that are easy to forget

The categories people leave out are usually the ones that arrive once or twice a year, which is why they feel like a surprise. These ones catch many Australian households:

• Car rego. The price depends on your state. See how each state builds the price of car rego.
• Council rates. Billing varies by council. Our council rates guide shows how to plan the bill. The free budget has no separate council rates line, so you can fold it into Utilities or Other.
• School costs. Uniforms, books and fees tend to land together at the start of the year. See back to school costs in Australia.
• Private health and other insurance. Premiums may be monthly or yearly, so check how yours is billed and plan for the whole amount.
• Internet and mobile plans. These look small each month but add up across the year.

How to choose your own categories

1. Start from your real spending. Look at a month or two of bank statements and group what you see. A budget built on guesses leaves gaps. The 3-Minute Budget is a spreadsheet that builds a budget from a pasted bank statement, if you would rather not sort every line yourself.
2. Keep the list short. Fewer categories are easier to keep up. You can always split one later.
3. Give annual bills a line. If a bill is big and arrives rarely, it needs its own category or a clear home, or it will wreck a single pay.
4. Watch Other. If Other keeps growing, look at what is in it and give the biggest item its own line.
5. Review after a few pays. Compare plan and actual, then rename or merge categories that are not working. Budget vs Actual explains how.

If you track spending as you go, the expense tracker spreadsheet guide covers how to keep your categories consistent.

When 23 categories are not enough

For most households, a short list is enough to start. If you want each cost on its own line, with its own pay frequency, Fortnightly Budget Plus has over 30 renameable spending categories, so you can set the list up to match your household. The Excel budget templates for Australians guide compares every Money Detective spreadsheet.

Where categories fit in your bigger plan

Categories show where the money goes today. What you want it to do next is a separate question, and our guide to household financial goals in Australia picks up from there.

Official sources and further reading

This article provides general information only. It does not take into account your personal objectives, financial situation or needs, and it is not financial advice. Examples use invented figures. Money Detective's tools provide estimates and planning information. Consider your own circumstances, and seek independent advice if you need it, before making financial decisions.