In fact three out of four Aussies will maintain or boost overseas spending in the future, with retail and travel purchases the main culprits.
New research has uncovered that a potential economic downturn and higher cost of living will not deter Australians from spending their money overseas, with more than three-quarters intending to maintain or increase international payments during FY23.
The finding indicates that Australia appears to be progressing into the financial year with some level of consumer confidence.
The finding was derived from a survey of an independent panel of 1000 Australians who make international payments, commissioned by Money Transfer Comparison, a global comparison website that has found the best exchange rate across 60 global money transfer companies for thousands of consumers and businesses.
The survey suggests that most Australians have no intention of curbing their spending on overseas goods and services, with 51% saying they will maintain the same level of international payments in FY23 and 23% planning to increase their overseas payments.
Much of the spending is expected to be on goods and services as well as travel bookings.
When asked what their reasons will be for making international payments this financial year, 61% said purchases on foreign goods or services were cheaper.
Coming off the back of strict restrictions and lockdowns, not even the projected economic downturn has halted Australians’ overseas travel plans for the next year, with 38% intending to make payments on international travel this financial year.
Approximately one-third of Australia’s culturally diverse population was born overseas and almost half have at least one foreign-born parent.
For this reason, more than a quarter reported that they will either continue or start sending money to family members based overseas. Interestingly, almost 70% of those respondents will send thousands of dollars to their loved ones that are adversely impacted by the global economic downturn.
Alon Rajic, founder of Money Transfer Comparison, said: “Our research findings signal a comfortable level of discretionary spending by Aussies – even in light of a projected recession and higher cost of living. Australians are part of a global economy and it is unlikely that an economic downturn will significantly deter our population from participating in it.”
Money Transfer Comparison also found that 78% of respondents use their credit card when making overseas payments and a further 36% make international transfers through their bank. Just 22% use a specialist money transfer service.
Alon said: “For retail purchases, credit cards offer convenience and purchasers are therefore willing to put up with fees and surcharges. When transferring to another bank account, banks are often the first choice – however, banks will likely charge you relatively high fees and charges.”
The full results, with age and State breakdowns, can be found here: https://moneytransfercomparison.com/australia-info/international-payments-fy23.html
