Young Australians cut back on essentials while Baby Boomers spend freely
The spending gap between young and old Australians is growing, a new report reveals
3 min
Younger Australians in their mid-to-late-twenties have cut back on spending more than any other age group, while Baby Boomers aged over 65 years continue to spend above inflation, according to the latest CommBank iQ Cost of Living Insights Report. Those aged 25-29 years have reduced spending by 3.5 percent compared to last year, and they’re the only age group to have cut back on both essential and discretionary expenses.
CommBank and artificial intelligence company Quantium use de-identified payments data from CBA’s seven million customers every quarter to evaluate how Australians are spending their money and responding to today’s higher costs of living. One of the strongest trends is Australians reallocating more of their funds to cover essential expenses such as groceries and insurance and cutting back on discretionary items like apparel.
However, young Australians aged 25 to 29 are the only age cohort cutting back on essentials as well as discretionary items. During the March quarter, they spent 10 percent less on health insurance than they did in the March 2023 quarter, with CommBank saying this was the result of a 12 percent reduction in the number of people having coverage. They spent 7 percent less on utilities, 4 percent less on supermarket groceries and 3 percent less on insurance. The national trend encompassing all age groups was the opposite. Examples include a 3 percent increase in spending on groceries and an 8 percent increase on insurance.
“Compared to the national experience, where most people have had to increase spending on essentials, we are seeing the opposite trend amongst those in their twenties, with essential spending falling at a similar rate as discretionary,” said CommBank iQ Head of Innovation and Analytics Wade Tubman.
“This highlights the difficult choices people in this age bracket are making, with some having to make larger lifestyle changes like foregoing their health insurance altogether. The decrease in utilities spending could also suggest young Aussies are moving back in with parents or into shared accommodation to split costs.”
The average Australian is spending 3.6 percent more on essentials at an average of $1,472 per month, led by an 8 percent increase on insurance, 5 percent on medical and pharmacy, and a 3 percent bump on utilities, supermarket groceries and transport.
“Many Australians are having to allocate more of their wallet to essential living expenses, rather than other areas where they may prefer to direct their spending. The cost-of-living initiatives announced in the Federal Budget, for example the energy bill rebate, reflect the increased spending by Australians on essential items like energy,” Mr Tubman said.
The data showed continued growth in spending among Baby Boomers. “The wide gap in spending patterns across age groups continues to persist, with Australians in the 60 and older age bracket spending above inflation, especially on activities like travel, which is up 11 percent, general retail up 9 percent and eating out, up 7 percent,” Mr Tubman said.
The data shows that the older Australians are, the more money they are spending. Those aged 75-plus are spending 6.5 percent more at $2,408 per month. Those aged 70-74 are spending 5.1 percent more at $2,762 per month. Those aged 65-69 are spending 4.4 percent more at $3,253 per month and those aged 60-64 are spending 3.7 percent more at $3,331 per month. At the other end of the scale, Australians aged 25-29 are spending 3.5 percent less at $2,099 per month and those aged 30-34 are spending 0.6 percent less at $2,568 per month.
Australians living in regional areas are holding up better amid today’s high cost of living.
“While spending in regional areas continues to outpace that of metro areas, this gap has narrowed when compared to previous quarters. This raises the question whether people in metro locations have downsized their wallets to adjust to higher prices, and what spending growth remains is now ‘the new normal’,” Mr Tubman said.
Spending was most resilient in Queensland, the ACT and South Australia. The data shows per capita spending on travel and other discretionaries in Queensland was higher than the national average. Interestingly, both Queensland and South Australia have the fastest-growing retiree populations in Australia. Data just released by the Bureau of Statistics shows Queensland saw the highest increase in retiree residents between FY21 and FY23while South Australia saw the largest rise in the proportion of its population that is retired.
Brickworks has enlisted acclaimed architecture studio Kennedy Nolan to explore how homes could become more adaptable, energy-efficient and connected to community.
Ophora Tallawong has launched its final release of quality apartments priced under $700,000.
With US$40 million already committed, the Global Talent Fund is attracting investor attention with a strategy focused on building globally scalable consumer brands alongside high-profile talent.
2 min
A new investment fund targeting celebrity-founded consumer brands has secured US$40 million in commitments and is rapidly approaching its US$50 million fundraising target, signalling growing investor appetite for alternative opportunities beyond traditional asset classes.
The Global Talent Fund, which has a maximum raise of US$100 million, focuses on building and investing in consumer businesses alongside celebrities, athletes, and influential personalities who play an active role as co-founders rather than simply endorsing products.
The strategy is based on the belief that changes in consumer behaviour, particularly the rise of social media and digital engagement, have fundamentally altered how brands are built and scaled.
GTF founding partner Jeremy Hunt, who is helping lead the fund’s strategy, said consumers increasingly feel connected to personalities they follow online and are more willing to support products developed by those individuals.
“Consumers are searching for content to engage with, and when a celebrity they like or follow takes them on the journey of creating a product or brand, they genuinely feel part of that process,” he said.
The fund is targeting high-growth consumer sectors including wellness, hydration, beauty and recovery, areas Hunt believes continue to benefit from strong global demand and ongoing innovation.
Rather than backing celebrity endorsement deals, the fund is seeking businesses where talent is deeply involved in product development, brand creation and long-term growth.
According to Hunt, authenticity remains one of the biggest differentiators between successful celebrity-backed brands and those that fail.
“The consumer can see clearly if someone is simply being paid to promote a product,” he said. “The winners are typically the brands where the celebrity has genuinely helped build the business from the ground up.”
The model has attracted support from several prominent Australian investors and business families, reflecting broader interest in alternative investments with global growth potential.
Hunt said consumer brands offered a level of tangibility that many investors found appealing.
“Consumer brands are what we touch, feel, smell and taste every day,” he said. “Our investors understand the growth potential in the model, but they also want to be part of the journey.”
The fund’s rapid progress towards its fundraising target comes amid growing recognition that celebrity influence, when combined with strong commercial execution and scalable business models, can create significant enterprise value.
With several high-profile celebrity-founded businesses generating billion-dollar exits in recent years, supporters of the strategy believe the opportunity remains in its early stages.
For more information, contact marc@kanebridge.com.au
From the shacks of yesterday to the sculptural sanctuaries of today, Australia’s coastal architecture has matured into a global benchmark for design.
In the remote waters of Indonesia’s Anambas Islands, Bawah Reserve is redefining what it means to blend barefoot luxury with environmental stewardship.
