Public holiday surcharges: A growing burden for older Australians

While many Australians look forward to public holidays such as Good Friday, Easter Sunday, and Anzac Day, for older Australians, these days can come with an unwelcome price tag — quite literally.

Public holiday surcharges imposed by cafés, restaurants, and bars are becoming an increasing source of concern, particularly for retirees and those on fixed incomes. A recent survey by Money.com.au found that nearly one in five Baby Boomers (19 per cent), those in or approaching their 60s, say they dread these extra charges.

Younger Australians are also feeling the pinch, with Gen Z (18 per cent), Millennials (14 per cent), and Gen X (12 per cent) expressing similar concerns. In Australia, it’s not uncommon for hospitality venues to impose a 10 per cent to 15 per cent surcharge on public holidays, with some charging as much as 20 per cent.

Money.com.au’s Finance Expert, Sean Callery, says public holiday surcharges can feel like an extra tax on enjoying a night out, especially for retirees and older Aussies living on a fixed income.

“When every dollar counts, public holiday surcharges can make social outings less accessible for older Australians, potentially leading to increased financial pressure or even social isolation,” he said.

Callery went on to suggest ways older Australians can shoulder the financial burden.

“The best approach is to factor those surcharges into your budget to avoid bill shock, or look out for the few venues that do not surcharge on public holidays,” he added.

“Additionally, concession card holders may still be eligible for discounts on food and services on public holidays.”

These surcharges place an added financial burden on older Australians who are already struggling to make ends meet on the age pension.

These challenges came to light in the latest Cost of Living Longer Report 2024, commissioned by Australian Seniors in partnership with research group MyMavins.

The study surveyed over 1,000 Australians aged 50 and above, revealing the impact of inflation and rising costs on those relying on the age pension.

Alarmingly, the study found that nearly three in five (58 per cent) are facing moderate to severe financial challenges due to rising costs, with one in 10 (10 per cent) experiencing severe difficulties.

With the cost of living continuing to climb, seven in 10 (69 per cent) now fear that the age pension alone will not be enough to live on.

The financial strain has left nearly three in five (59 per cent) struggling to pay for essentials such as utilities and groceries.

Even more concerning, one in five (20 per cent) have delayed or forgone medical treatment due to costs, placing their health at risk.

Understandably, these difficulties are taking an emotional toll, with around two in five (43 per cent) reporting a decline in their quality of life over the past two years. For 21 per cent, this decline has been considerable or severe.