Australians Shift Spending Habits as Living Costs Rise

Australia’s rising living costs are prompting changes in how people manage their finances. Recent insights from the CommBank iQ Cost of Living Report highlight shifting priorities across generations and regions. While younger Australians are tightening their budgets, regional areas like Western Australia and Queensland are showing surprising resilience in spending.

Generational Shifts in Spending
The data reveals a clear divide in spending behavior among different age groups.

• Australians aged 18–29 reduced their overall spending by 2%, scaling back on both essentials and non-essentials.
• Those in their 30s followed a similar trend with moderate reductions in discretionary spending.
• In contrast, Australians aged 60 and older increased their spending, with those over 70 recording a notable 7.7% rise.

This divide highlights the financial pressure on younger Australians as they focus on necessities and save for long-term goals, while older generations, often with greater financial security, continue spending with confidence.

Regional Trends Reflect Economic Confidence
Geographical location is playing a key role in how Australians manage their spending:

• Western Australia recorded a 3.1% growth in spending, driven by leisure activities and travel. This reflects a strong economic outlook, which often signals stability in related sectors like housing.
• Queensland showed even stronger growth at 3.9%, supported by state government initiatives such as energy relief programs and discounted transport.
• Victoria saw the slowest growth, at just 0.4%, with households focusing on essential needs rather than discretionary spending.

These figures point to opportunities in thriving regional economies like Western Australia and Queensland, while Victoria’s cautious spending highlights a slower pace of recovery.

The Role of Refinancing in Today’s Economy
With many Australians feeling the impact of rising costs, refinancing is emerging as a solution to better manage monthly budgets. Lower interest rates, reduced repayments, or accessing home equity can provide financial breathing room during times of pressure.

• In confident markets like Western Australia and Queensland, refinancing may offer opportunities to take advantage of favorable conditions.
• In more reserved regions like Victoria, refinancing can help reduce monthly commitments and ease financial stress.

Making Financial Choices Simpler
Every homeowner’s situation is unique, and these trends emphasize the need to adapt financial strategies based on personal goals and regional dynamics. Refinancing isn’t just about saving money—it’s about creating opportunities to manage costs more effectively while planning for the future.

For tailored advice on how refinancing could work for you, get in touch with OM Financials. Book a call with us today!