Australians are quietly footing the bill for shared expenses with their nearest and dearest, with new research from PayPal revealing that Aussies estimate they are currently owed $423 on average, by friends, family, partners and colleagues who haven’t paid back their share.
Two-thirds of Australians (67%) admit they’ve avoided asking to be repaid because it felt too awkward. In fact, 71% say chasing repayments makes them feel uncomfortable, a behaviour that is fuelling what’s been dubbed the hidden ‘Bestie Tax’ - the silent cost of sparing friends’ feelings at the expense of their own wallets.
When it comes to repayment, money is such a sensitive subject that many Aussies would rather tackle other uncomfortable conversations instead. More than a third (36%) say they’d prefer to talk about politics, one-in-four (25%) would rather discuss religion, and one-in-five (20%) would rather talk about sex. Some even admit they’d rather tell someone they have bad breath or body odour (9%) than remind them about money owed.
Left out of pocket and hard done by
The impact is widespread – almost two third of Australians (63%) say they’ve been let down financially by someone close to them. Friends are the worst offenders, with 42% naming mates as the least reliable at paying them back, followed by co-workers and adult children (both 18%).
The impact is not purely financial. When Australians aren't repaid, 37% say they feel taken advantage of, 31% are left frustrated and another 31%, feel embarrassed to ask again. Others say the situation makes them feel awkward (27%) or that the effort to chase repayment is simply not worth the hassle (23%).
“Talking about money with friends and family often feels uncomfortable, which is why so many Australians avoid it. But when these conversations don’t happen, people end up carrying the financial burden themselves. The so-called ‘Bestie Tax’ is a hidden cost of silence - and digital tools like bill-splitting features can help make repayment easier, fairer, and less awkward for everyone.” Says Thomas Suffren, Head of Consumer Engagement lead at PayPal Australia.
Gen Z: More silence, bigger shortfalls
The reluctance is even greater among young Australians. Gen Z are significantly more uncomfortable than the national average when it comes to asking for repayment, with 81% saying they feel awkward compared to 71% of Australians overall. They are also far more likely to avoid the conversation entirely, with nearly three-quarters of Gen Z (74%) admitting they have avoided asking to be paid back, compared to 67% nationally.
That silence comes at a cost. Nearly three-in-four Gen Zs (72%) say they’ve been left out of pocket for money that was never repaid, compared with 63% of Australians overall. This means that Gen Z is disproportionately paying the hidden ‘Bestie Tax’ by staying silent more often, and ultimately losing more money across meals, drinks, tickets, and shared experiences.
Digital tools to break the silence
Digital tools, like PayPal’s bill-splitting and payment request features, take the sting out of sensitive moments. They help Australians manage their finances fairly, keep track of what they are owed, and most importantly, protect their friendships.
With just a few taps, Australians can now send or request money from friends using nothing more than an email address or phone number, no need to share BSBs or account numbers. Splitting a bill is simple: enter the amount, choose to split it evenly or unevenly, and PayPal instantly pings your friends so they can repay you in moments.
These PayPal features are designed to make repayments simple and seamless, while keeping payment details protected. Research shows two-in-three (66%) Australians needed to split a bill with friends, family or colleagues in the past year - underscoring the demand for easy, secure solutions.
PayPal is refreshing its peer-to-peer (P2P) experience in Australia, prioritising straightforward, secure ways to send, split and request money that connect seamlessly to everyday life.
To find out more about the PayPal Split Bill function, visit: https://www.paypal.com/au/digital-wallet/send-receive-money.
ENDS
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PayPal Australia was established in 2005 and has more than 9.5 million active Australian customer accounts. PayPal enables Australian consumers and businesses to easily and securely send, receive, and manage their money. The PayPal service is provided by PayPal Australia Pty Limited (ABN 93 111 195 389) which holds an Australian Financial Services Licence number 304962. PayPal credit services including PayPal Pay in 4 are provided by PayPal Credit Pty Limited (ACN 600 629 258). For more information visit PayPal Australia Newsroom for more information and follow us on Instagram or Facebook.
References
Nationally representative online survey of 1,022 Australians aged 18+, conducted August 5 to August 8, 2025, by YouGov, commissioned by PayPal Australia. Data weighted by age, gender and region to latest ABS population estimates; results reported at 95% confidence.
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