Australians are planning on spending about $7 billion less this Christmas season as cost of living pressures weigh on one of the most expensive times of the year.

New data from comparison site Finder, shared exclusively with News24.com.au, showed Australians will spend an average of about $1400 across presents, travel, eating and drinking out, entertaining and alcohol this Christmas.

This is down $351 per person from $1750 in 2025, marking a 20 per cent decline.

Australia’s total is expected to decline from $37.4 billion last year to $30.5 billion in the 2026 season.

It comes as inflation remains outside the RBA’s target band and interest rates were lifted five times this year, while rates were cut three times in 2025.

Finder’s research shows Australians will spend $502 per person on flights and travel, about $200 less than last year.

Spending on presents will fall from $438 to $367 per person while food and entertainment is expected to fall from $269 to $220 per person.

Finder’s personal finance expert Sarah Megginson said Australians are reassessing their holiday budgets under the cost of living crisis.

“The holidays can be one of the most expensive times of the year, and Australians are taking a hard look at what they can realistically afford,” Ms Megginson said.

“Travel is a major expense, so pulling back on flights and holiday plans can make a big difference to the overall budget.

“When the cost of everyday essentials is already taking a big bite out of household income, there’s less money left over for the silly season.”

Australians are also planning on winding back their booze budgets from $123 to $105 while the smallest cut was on food, where spending is edging down from $215 to $205 per person.

Ms Megginson said Australians can still buy all their holiday essentials while spending less.

“The trick is to decide what matters most to you, rather than trying to do everything and paying for it later,” she said.

“Look at the big-ticket costs first, particularly travel and accommodation, and be realistic about what you can afford before you book.

“Don’t leave booking til the last minute, because prices rise the closer you are to the date.

“Consider cutting back on gifts and doing joint presents, Secret Santa or a gift of service instead.”