Australians are set to spend less overall on Father’s Day this year, but those who do open their wallets are planning bigger splurges.

New research from the Australian Retailers Association (ARA), in partnership with Roy Morgan, shows around 4.7 million people will spend a combined $720 million on gifts for dads, grandads, partners and father-figures in 2025.

That’s down $100 million on last year as cost-of-living pressures continue to weigh on households.

While fewer are shopping, average spend per buyer is up sharply – reaching $145, a 44% jump compared to 2024.

Popular gift picks include alcohol, food, clothing, grooming products, tech and experiences such as dinners or trips. Around 28% of Australians plan to celebrate with a meal, either at home (19%) or out at a restaurant or café (9%).

ARA CEO Chris Rodwell said the shift reflects both economic strain and a desire to make celebrations meaningful.

“There’s no hiding the fact we’re seeing a drop in gift giving this year. This year’s Father’s Day projections indicate around 20% of Australians expect to buy gifts compared to 36% in 2024,” said Rodwell. “This tells us how real the ongoing cost-of-living pressures are for many households.

“At the same time, families who can are choosing quality over quantity this year when it comes to celebrating Dad. A quarter of gift-buyers plan to spend more than $200, and 26% say they’ll spend more than they did in 2024.”

Rodwell added: “Older Australians, in particular, continue to make Father’s Day a priority, while younger groups are tightening their spending, likely because they face the greatest mortgage and budget pressures. That’s why as we head into retail’s peak season, we are calling on the Reserve Bank of Australia to remain open to further interest rate cuts.”

Interestingly, 1.9 million Australians (8%) say they will purchase a gift for someone other than their birth father this year.

Father’s Day 2025 – Top Gift Categories

  • Alcohol / Food – 17%
  • Clothing / Shoes / Sleepwear – 14%
  • Toiletries / Grooming – 7%
  • Voucher / Gift card – 7%
  • Tech items – 5%