Big spending this Father's Day

DADS can look forward to a more extravagant Father's Day this year, with business analysts predicting Australians will splash out more than $1 billion on presents and restaurant meals.

Australians would spend $1074 million on their fathers in 2010 - up 2.8 per cent from 2009, business information analysts IBISWorld said on Tuesday.

However, this would still be $5 million down on pre-global financial crisis spending levels, which reached $1079 million in 2008.

"Improved economic conditions, lower unemployment and higher disposable incomes will support increased Father's Day spending in 2010, although Australians remain cautious," IBISWorld general manager (Australia) Robert Bryant said in a statement.

The calculations are based on IBISWorld's database of consumer trend reports and include spending that has occurred so far in the run-up to this year's Father's Day on Sunday (September 5).

Australian cafes and restaurants are set to be the top earners from Father's Day as many families opt to treat their dads to a meal out rather than a home-cooked feed.

Spending in this sector is set to reach $261 million - up 3.6 per cent on last year.

Spending on hardware and electronic goods is predicted to bounce back by 13 per cent to $236 million in 2010, after a fall of 18.8 per cent in 2009.

Electric shavers, power tools and computer games are likely to be the most popular hardware and electrical presents.

Books and CDs are out of favour this year, with spending on them predicted to drop 5.1 per cent to $52 million.

Instead, gift cards are set to make up more than 10 per cent of Australian Father's Day spending.

And dads fond of a tipple will be glad to hear $29 million is likely to be spent on liquor.