The rising cost of living is hitting Australian consumers in the pocket this Christmas, according to a new survey.
The Homeloans Christmas Spending Survey revealed that just over six in ten (63%) of respondents said rising costs was affecting how much they spend over the holiday period. As a result, 61% of respondents said they plan to spend less on Christmas presents this year than they have in previous years.
“A resounding theme was that finances were tight this year,” Will Keall, Homeloans’ national marketing manager said.
“We had respondents tell us that as their children grow older they don’t need to buy as much, and therefore are spending less. Some have just bought new homes so are watching their budgets, while others are saving for big expenses such as holidays or because their families are expanding.”
Residents from New South Wales were the least worried, with only around half saying they’ll spend less this year. Conversely, Queenslanders are the ones who are watching their finances the most, with 71% of Queensland respondents saying the rising cost of living will affect how much they spend.
The higher cost of living is also seeing many Australians forgo a vacation. According to the survey, almost three quarters said they won’t be going away for Christmas.
“There was a strong response to this question, with many people simply stating they can’t afford to go away for the holidays,” Keall said.
Of those who are travelling, more than half plan to stay within their home state, over a quarter will travel interstate, while 17% plan to go overseas. WA residents are most likely to go overseas (37%), compared with the rest of Australia (13%).