Australia’s economic pulse is being set by those no longer in the workforce. A generational inversion is playing out in plain sight—one that flips decades of economic logic on its head. Older Australians are driving household consumption, buying new cars, going on holidays, eating out, and shopping at rates that younger Australians simply can’t match. The under-40s, meanwhile, are cutting back on both essentials and indulgences—not out of thrift, but necessity.
Tarric Brooker, a financial analyst and journalist, highlights a pattern of consumption that looks less like a functioning economy and more like a slow-motion breakdown of generational equity. Drawing on data from CommBank iQ and academic research, he points to a sharp generational divide: younger Australians are cutting back on spending, while older Australians continue to spend freely, reshaping the nation’s economic rhythm.
The numbers don’t hide. Australians aged 25–29 have reduced their overall expenditure by 3.5% year-on-year. Essentials are down 3.1%, and discretionary spending is down 3.8%. Once inflation is factored in, the drop in real spending since May 2023 is over 7%. This is not belt-tightening. This is retreat.
At the other end of the demographic curve, spending is up. Those aged 65–69 are outspending every age group under 45. Australians in their early seventies are splashing out 14.1% more than 30–34-year-olds, reversing what has traditionally been seen as a natural economic progression—spend when you’re young, save as you age.
The CBA’s chart shows an undeniable divergence. Younger Australians—18 to 29s and 30 to 39s—are deep in the red for annual spending growth. Older Australians—60 to 69s and 70 to 74s—are clocking up inflation-busting increases of 3.9% and 2.5%, respectively. They are spending not because they’re irrational, but because they can.
The shock of this inversion is compounded by its timing. Post-pandemic economic recovery should, in theory, see a revival in young adult consumption. But what’s playing out looks less like recovery and more like generational stagnation.
Behind the economic trend lies a structural story. The housing crisis is doing much of the damage. The Australian Housing and Urban Research Institute (AHURI) has linked worsening rental stress and housing unaffordability with delayed life milestones. The idea of young people moving out, starting families, or buying homes feels less like an achievable goal and more like a nostalgic memory from another economic era.
Wade Tubman, Head of Innovation and Analytics at CommBank iQ, put it bluntly: “Compared to the national experience, where most people have had to increase spending on essentials, we are seeing the opposite trend amongst those in their twenties.” Essential spending is falling because many can no longer afford the essentials in the first place.
Homeownership among young people is becoming rarer. When you don’t own a home and you’re paying rent that eats up half your income, spending on travel, furniture, or even going out becomes an impossible luxury. Meanwhile, the older cohort—often mortgage-free and asset-rich—are free to spend. Travel is up 11%, general retail is up 9%, and dining out is up 7% among older Australians.
Consumer sentiment data from Westpac and the Melbourne Institute shows a steep fall in financial optimism, especially among the under-40s. The younger you are, the less hopeful you feel. That’s hardly a recipe for economic dynamism.
As Brooker explained, “We know it’s damaging, we know it’s causing long-term harm that will be weighing on households 30 years from now, but policymakers just can’t stop.” The problem isn’t simply economic mismanagement. It’s a cultural stasis. Nobody wants to make the short-term trade-offs required to fix long-term problems.
And yet the costs are already piling up. Birth rates are falling. Australia’s fertility rate is at its lowest in recorded history. The reasons aren’t mysterious: people delay children when they can’t afford homes or feel uncertain about the future. A population ageing without replenishment means economic consequences that go well beyond household budgets.
The conversation triggered by Brooker’s thread reveals something deeper than data. It captures a generational disillusionment. Young Australians aren’t just spending less—they’re participating less. They’re not buying homes, not forming families, not consuming at rates required to fuel a consumer economy. They are being priced out of their future by those who already own the past.
This isn’t to suggest older Australians are to blame. But it is to say that the system they benefited from is no longer working for the generations coming up behind them. Policymakers are treading water—avoiding difficult decisions on housing reform, stagnating wages, and generational equity.
The solutions are known but politically inconvenient. More affordable housing, both through construction and zoning reform. Better wage conditions for younger workers. Investments in education and training that are tied to actual industries. Targeted tax reform that doesn’t simply protect existing wealth but helps create new pathways for the next generation to participate.
Brooker’s final reflection is sobering. “We’re stuck in this idea that we can magically fix things without any challenges at all.” Magic doesn’t build homes. It doesn’t grow wages. And it doesn’t fix a spending divide that, if left unchecked, could permanently fracture Australia’s social contract.
The country can’t afford to keep pretending this is normal. The data says otherwise. The kids aren’t alright—and they’re not shopping either.
Support independent community journalism. Support The Indian Sun.
Follow The Indian Sun on X | Instagram | Facebook
Support Independent Community Journalism
Dear Reader,The Indian Sun exists for one reason: to tell stories that might otherwise go unheard.
We report on local councils, state politics, small businesses and cultural festivals. We focus on the Indian diaspora and the wider multicultural community with care, balance and accountability. We publish in print and online, send regular newsletters and produce video content. We also run media training programs to help community organisations share their own stories.
We operate independently.
Community journalism does not have the backing of large media corporations. Advertising revenue fluctuates. Platform algorithms change. Costs continue to rise. Yet the need for credible, grounded reporting in a multicultural Australia has never been greater.
When you support The Indian Sun, you support:
• Independent reporting on issues affecting migrant communities
• Coverage of local and state decisions that shape daily life
• A platform for small businesses and community groups
• Media training that builds skills within the community
• Journalism accountable to readers
We cannot cover everything, but we work to cover what matters.
If you value thoughtful reporting that reflects Australia’s diversity, we invite you to contribute. Every donation helps us maintain the quality and consistency of our work.
Please consider making a contribution today.
Thank you for your support.
The Indian Sun Team
