New research from PayPal reveals that two-in-five Australians (38%) plan to participate in the End of Financial Year (EOFY) sales this year, with a sizable proportion (42%) opting to do their shopping online. This trend marks a notable shift from the traditional focus on tax-deductible work expenses, suggesting that Australians are increasingly using this period to purchase other discounted items.
Traditionally, EOFY sales have been an opportunity for Australians to stock up on work-related items, boosting their tax deductions. However, the new research indicates that a majority of those intending to shop this year (51%) will target clothing or fashion items instead. Electronics (31%), homewares and garden products (26%), and health and beauty items are also high on the shopping lists. Only 12% are planning to seek out tax-deductible purchases.
The current economic climate appears to be a significant factor in this shift. More than half of the respondents (52%) believe online sales can help them manage cost-of-living pressures. The convenience and potential savings of online shopping are evident, with the same proportion (40%) saying that it is easier to compare prices online and to secure better deals. Hence, it is no surprise that a considerable number of Australians are turning to the internet for their EOFY shopping needs.
Bonnie Brady, a Consumer Shopping Expert at PayPal, noted that Australians are keen to reduce spending amid the ongoing cost-of-living crisis. She emphasised that while sales can offer substantial savings, it is essential to plan purchases and set budgets to avoid impulse buying and overspending.
Despite the growing trend of online shopping, almost all Australians (93%) express concerns about online security. With fake retail sites leveraging generative AI to appear more convincing, these concerns are not unfounded. Moreover, 85% of Australians believe scams are becoming more sophisticated and harder to recognise, with two-in-five (40%) more concerned about their online security now compared to a year ago.
This heightened concern has led to increased awareness, with 84% of Australians feeling confident about their understanding of online security measures. A significant majority (99%) are knowledgeable about key online safety techniques, such as using complex passwords (87%), diversifying passwords (76%), and avoiding links in text messages (76%). Additionally, four-in-five (84%) Australians are more inclined to make online payments if there is a secure method available, such as PayPal.
Nonetheless, this vigilance against potential scams can also have drawbacks. Eighty-seven percent of Australians now avoid answering phone calls from unknown numbers to avert being scammed, and 15% have missed genuine payments because they assumed the communication was fraudulent.
Brady highlighted the importance of continuous learning in maintaining online security. “The convenience of online shopping has never been more popular, but we must all do the work to learn how to stay safe online and to keep that understanding up as new threats emerge,” she said. “The protective steps each of us can take are simple and often free, but no one can take them for us.”
Among the measures recommended by PayPal to ensure safe and savvy online shopping are planning purchases, scrutinising suspicious sites, checking reviews, understanding return options, comparing prices in real-time, and keeping financial details safe by using secure payment methods like PayPal.