Digital Lives research: Cyber fears continue to rise and cost of living impacts Aussies online

New research from auDA in its Digital Lives of Australians 2025 report indicates a disparity between growing public concern over cybercrime and diminishing cyber preparedness among small businesses.

The research, now in its fifth year, reveals that the majority of Australians (83 per cent) believe cybercriminals are getting more sophisticated, leading many (67 per cent) to avoid certain online activities to protect themselves from online harm. Despite this broad community concern, fewer than a quarter of small businesses (20 per cent) have a cyber security policy or offer cyber security training to staff – a decrease since the research's inception in 2021.

The report also shows the rising cost of living is shaping online behaviour. Almost three quarters (72 per cent) of Australians are using the internet to identify savings, while nearly a quarter (22 per cent) have created or expanded a “side hustle” for additional income. Of those side hustles, 83 per cent rely on the internet.

Informed by a survey of 2,000 consumers and 400 small businesses, auDA’s Digital Lives research offers deep insights into Australians’ views on and experiences with critical digital issues including cyber security, digital skills, digital identity (Digital ID)¹ and artificial intelligence (AI).

• One-fifth of small businesses spend nothing on cyber security
• Business size matters when it comes to cyber security – only 44 per cent of sole traders have at least one cyber security practice in place (compared to 89 per cent of small and 87 per cent of micro businesses²).

• Almost three-quarters (72 per cent) of women believe they don’t have the technical skills required for a career in IT and technology, compared to just 54 per cent of men.

• Most Australians are now using AI (56 per cent, up from 45 per cent in 2024) and young men (18 to 34 years) are the biggest users (79 per cent)
• The main use for AI is to find answers to search queries (30 per cent) and solve problems (18 per cent)
• Despite this, 70 per cent want control over how their data is used to train AI and 64 per cent want stronger regulatory safeguards for AI.

• 34 per cent of Australians report having a Digital ID, much lower than government estimates, suggesting there is confusion about Digital IDs.

auDA CEO Bruce Tonkin said, “auDA’s Digital Lives of Australians report provides essential insights for industry, policymakers and educators to better understand the online behaviours and attitudes of Australian consumers and small businesses.

“Unlocking the internet's full potential and boosting digital skills for all Australians requires a concerted effort to build digital trust - a core focus for auDA. We believe that better collaboration between government, industry, academia and civil society will enhance the internet's utility and uplift the value it provides to all.”

auDA is committed to innovation and research that improves the utility of .au and improves online experiences for all Australians. To read the full Digital Lives of Australians 2025 report, visit: www.auda.org.au/DL25

ENDS

auDA’s Digital Lives research tracks the online behaviours and attitudes of Australian consumers and small businesses, and sets out how they have changed since 2021 in an evolving digital landscape.

You can view previous Digital Lives of Australians reports at: www.auda.org.au/DL25.

The Digital Lives of Australians 2025 research was undertaken on behalf of auDA by SEC Newgate Research. It comprised a survey of 2,000 Australian consumers and 400 small businesses, a 3-day online discussion forum with 14 consumers and 12 small businesses, and qualitative interviews with 8 consumers and 7 small businesses

¹ The term Digital Identity in the Digital Lives report refers to Australia’s secure system for verifying identity online. It reduces the need to repeatedly share documents like passports or bank statements and is stored safely on a device. This differs from a digital driver’s licence, which is just a digital copy of one ID. Digital IDs can be created through accredited providers like myID (formerly myGovID) or Australia Post. For more information: www.digitalidsystem.gov.au.

² In the Digital Lives, small business refers to small businesses, micro businesses and sole traders combined, except where breakdowns are provided. The report adheres to the Australian Bureau of Statistics (ABS) definitions for small businesses (5-19 employees) and micro businesses (1-4 employees).