Australians are set to make “radical” changes to their spending as the economy tightens according to new research by consumer intelligence platform, Toluna.
To combat rising inflation and manage expenses, 20 per cent of Australians are now putting off upgrading their tech devices such as mobile phones and tablets, performing home repairs or buying any major appliances (18 per cent).
To cut costs, people are also cancelling their entertainment services such as Netflix or Spotify (12 per cent), landline services (5 per cent) and reducing mobile phone plans (11 per cent).
Of the 1005 Australians surveyed, 36 per cent of respondents believe the rising costs will mean they will have less to spend on Christmas this year.
The research has also highlighted that one in 10 Australians have sought an additional income with 18 per cent of respondents between 18-34 ages signing up for gig work like Uber or DoorDash while 13 per cent in the 35-54 years age bracket are seeking other forms of income.
One in 10 Australians have put off plans to buy a home and a third of respondents agree to “actively refinance” within the next six months.
One in three Australians surveyed said they were actively reducing how much they drive and 26 per cent said their next car would be hybrid or an EV, in order to reduce the impact of petrol costs.
Sej Patel, country director at Toluna, Australia and New Zealand, said consumers are prepared to make “radical changes” to their spending as they feel the “pinch” of rising costs.
“With consumers cutting spending at every turn, businesses must identify ways to demonstrate value in order to retain customers. In this economic climate, price is the number one factor when it comes to purchasing decisions right now.”