A forecast multibillion-dollar uptick in Christmas and holiday spending is being taken as a sign Australians are finally getting beyond cost-of-living woes.

Consumers are, by and large, expected to loosen the purse strings over the festive season, with significantly increased outlays on gifts, food, dining out and travel.

A survey of more than 1000 Australians for comparison site Finder reveals they plan on average to shell out $1750 each.

That tots up to $37 billion nationwide – 29 per cent more than last year, which was calculated from an individual $1357 spend.

Money expert Rebecca Pike credited the $393 increase to households finally relaxing the purse strings, despite lengthy cost-of-living constraints.

“This surge in festive spending is a sign consumer confidence is creeping back,” she said.

“After years of cutting back, many families are finally feeling like they can breathe again and they’re choosing to celebrate in style.”

It’s a sentiment shared by Kate Britton, general manager at big four bank ANZ. Its analysts believe consumers will inject an extra $5 billion into the national economy during the holiday shutdown fortnight alone, from December 21 to January 5.

“Customers are embracing the festive spirit and we’re seeing that reflected in their spending habits, both in the lead-up to Christmas Day and the sales that follow it,” she said.

“From travel and leisure to digital goods and luxury items, this seasonal boost offers a significant and welcome uplift for businesses across the country as consumers use the down time to spoil themselves and their loved ones.”

Gift giving remains a priority, with an estimated average $438 outlay on presents, or 22 per cent more than last year, based on Finder’s number crunching.

That’s $9.4 billion that will be spent on gifts nationwide, with eight in 10 of survey respondents indicating they plan to buy presents.

Food and alcohol is expected to account for a fair chunk of our Christmas spending. Photo: Getty

Eating in will attract a $269 spend, while dining out will put a $215 hole in the budget.

Combined, this will generate an estimated $4.6 billion bill nationwide.

Three in five Australians are also lining up the Christmas drinks, although the average alcohol purchase is calculated at $123 – a decrease of 15 per cent on 2024.

Even so, the national Christmas grog tab is estimated at a whopping $2.6 billion.

“It’s great to see Aussies are in a better position financially but it’s still important to spend with intention,” Pike said.

“A bigger Christmas shouldn’t mean a bigger credit card bill in January – the smartest move is to enjoy the season without sabotaging your New Year budget.”

However, as households enthusiastically shop and plan festive meals, some 54 million plates of Christmas food could ultimately end up in the bin.

Research from End Food Waste Australia shows about 70 per cent of household food waste is perfectly edible, with around half sent to landfill.

“We know how much careful planning goes into Christmas, and the pressures that impact so many families across the country, so it’s hard to picture that a great amount of this food will never leave the plate,” the federal department’s research director, Francesca Goodman-Smith, said.

“With a few simple tips and insights into how we shop, cook and store food, we can all enjoy the season, reduce unnecessary food waste and save money in the process.”

Finder’s research shows 35 per cent of Australians are also planning a summer getaway. They’re expected to spend a touch over $700 on average on flights and accommodation, a 62 per cent jump on 2024.

Australians are right now among the world’s most motivated travellers.

A survey across 21 countries commissioned by insurer Europ Assistance revealed more than 60 per cent intend taking a trip to complement the festive season, compared to Europe’s 47 per cent.

“Even with cost-of-living pressures, we know travel is one of the last things people are willing to give up,” Insure&Go Marketing Director David Mayo said.

“This year’s data confirms Australians are prioritising their holidays, perhaps like never before.”

The average holiday budget has also increased, to approximately $5180, which is also well above the European average of $3410.

Aussies are taking longer breaks too.

The Europ Assistance study found an average trip duration of 2.1 weeks, outpacing Europeans and Americans.

Extended getaways are also more popular Down Under, with 14 per cent planning three-week holidays compared with 12 per cent of Europeans and just 7 per cent of Americans.

A further 14 per cent are planning four weeks or more versus 7 per cent of Europeans and 5 per cent of Americans.

Australians are almost evenly split on choosing holiday destinations, with 41 per cent preferring domestic getaways and 45 per cent opting for international escapes.

“Travel is back in full force,” Mayo said.

“This holiday season, we expect Australians to travel more, spend more and be away longer.

“The enthusiasm we’re seeing will not only benefit airlines and hotels but also the many small businesses and communities across Australia and overseas that depend on tourism.”

-AAP