Father’s Day spending in Australia is projected to decrease by $100 million this year due to cost-of-living pressures, according to Australian Retailers Association (ARA) predictions.

However, despite the overall decline, the ARA reports that 26 per cent of those buying gifts plan to spend more than last year, with nearly a quarter of shoppers budgeting over $200.

“This year’s Father’s Day projections indicate around 20 per cent of Australians expect to buy gifts compared to 36 per cent in 2024,” said Chris Rodwell, CEO of ARA. “This tells us how real the ongoing cost-of-living pressures are for many households.”

Rodwell also noted that younger consumers are tightening their spending due to budget and mortgage pressures, while older Australians are more likely to maintain their gift-giving traditions.

He said Australians plan to celebrate over a meal at home at 19 per cent and in a restaurant or cafe at 9 per cent. Consumers’ trending gift choices this year include alcohol and food, clothing and footwear, grooming products, and tech items.

About 8 per cent of shoppers plan on purchasing a Father’s Day gift for a person other than their birth father this year.