New research from PayPal shows that two in five (38 per cent) Australians are planning to shop the End of Financial Year (EOFY) sales, but not for the traditional tax-deductible work expenses.
EOFY sales are viewed by many as an opportunity to stock up on discounted work-related items and maximise tax deductions. However, of those planning to seek out EOFY savings this year, most (51 per cent) will be shopping for clothing or fashion, followed by electronics (31 per cent), homewares and garden items (26 per cent), and health and beauty products. Only one-in-ten (12 per cent), will shop for tax deductibles.
The current economic climate may be encouraging this broader bargain hunting behaviour, as more than half (52 per cent) said online sales can help them manage the current cost-of-living pressures. The fact that two-in-five (42 per cent)1 will shop the EOFY sales online rather than in store this year may be another sign of the economic times, as the same proportion (40 per cent)2 say it’s easier to compare prices online and that they usually get better deals.
“As the cost-of-living crisis continues, it’s clear that Australians are eager to save money whenever and wherever they can, looking to online sales events to help reduce spending,” said PayPal consumer shopping expert Bonnie Brady. “While sales can be a great way to save money on things you need or already intend to buy, it’s important to plan purchases and set budgets to avoid impulse buys and overspending”.
Despite the preference for digital discounts, almost all Australians (93 per cent)1 are concerned about online security with fake retail sites now leveraging generative AI to be more convincing than ever. In addition, 85 per cent of Australians say scams are becoming more sophisticated and harder to recognise, and two-in-five (40 per cent) are more concerned about online security than they were a year ago.
The research shows this concern has led to awareness, with 84 per cent feeling confident about their understanding of online security and how to protect themselves against scams. Almost all (99 per cent) are familiar with some key online safety techniques, including led by using complex passwords (87 per cent), diversifying passwords (76 per cent), and avoiding links in text messages (76 per cent). Four-in-five (84 per cent) are more likely to pay for an item online if there is a secure payment option like PayPal.
Unfortunately, this vigilance against potential scams is disrupting legitimate activity, as 87 per cent of Australians avoid phone calls from unknown numbers for fear of being scammed, and 15 per cent have missed a genuine payment because they assumed it was scam.
“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,” Brady said. “The protective steps that each of us can take are simple and often free, but no one can take them for us”.
