More Australians are planning to buy a gift for Dad this Father’s Day, but tighter household budgets are keeping average spending down.

New research from the Australian Retail Council (ARC), in partnership with Roy Morgan, shows 5.5 million Australians – or 23% of the population – plan to buy a Father’s Day gift this year, up from 4.7 million, or 20%, in 2025.

While that represents an encouraging increase of 800,000 shoppers, participation remains well below the 35% of Australians who planned to buy a gift in 2023 and 36% in 2024.

“Australians want to celebrate Dad, but they are being careful about how much they spend,” said ARC Chief Industry Engagement Officer Fleur Brown.

“We have more people shopping compared to 2025, yet the average budget has come back, which tells us value remains front of mind for households.

Spend forecast

Australians are expected to spend around $730 million on Father’s Day gifts this year, up $10 million, or 1.4%, from 2025.

However, the average amount shoppers expect to spend has fallen from $145 last year to $135 this year, a decline of 6.9%.

“It is encouraging to see more Australians planning to buy a Father’s Day gift this year, but we are some way below the participation levels from a few years ago,” Ms Brown said.

Present picks

Among shoppers who already know what they plan to buy, food and alcohol are the most popular Father’s Day gift at 29%, followed by clothing, shoes and sleepwear at 19%, experiences such as dinner or a trip at 14%, and vouchers or gift cards at 11%.

In-person celebrations are important this year. Around 8.7 million Australians, or 37%, plan to celebrate Father’s Day with breakfast, lunch or dinner at home, at a restaurant or cafe – up from 28% last year.

Around 12% of Australians – 2.8 million people – also plan to purchase a Father’s Day gift for someone other than their birth father this year, up from 1.9 million people in 2025.

Ms Brown encouraged support for retailers that invest in Australian jobs and communities when shopping for Dad.

“Whether it is a local small business or one of Australia’s major retailers, choosing businesses that invest and employ here helps support Australian jobs and communities,” she said.

“We wish all the dads, grandfathers and father figures across Australia a very happy Father’s Day.”