How Much Does It Cost to Raise a Child in Australia in 2026?

The Headline Figure

If you read Australian news articles about family costs, you'll see a wide range of numbers. The most commonly quoted estimates - from researchers like AMP.NATSEM and parenting sources such as the Raising Children Network - suggest that a middle-income Australian family spends somewhere in the range of $300,000 to $500,000+ raising one child from birth to age 18.

That works out to roughly $17,000 to $28,000 per child per year, or around $1,500 to $2,500 per month. Lower-income families generally spend less (because they adjust to a tighter budget), while higher-income families often spend more on private school, tutoring, activities, and holidays.

Estimated Annual Cost by Age

The table below shows a typical range of average cost per child per year for a middle-income Australian family. Treat these as ballpark figures - your own numbers will be higher or lower depending on childcare use, school choice, and where you live.

Add the ranges across all 18 years and you land back in that $300,000–$500,000 total. If you use full-time childcare in the early years or send kids to an independent school later, you can easily push above that.

Cost of Raising a Child in Australia 2025-2026 by Age

Here's what typically happens at each stage.

0 – 5 years: The expensive early years

The first five years are often the most cash-intensive. The big drivers are:

• Childcare - long day care in capital cities often costs $110–$170 per day before subsidies. The Child Care Subsidy can cut that significantly for most working families.
• Lost income - one parent (usually the mum) often takes months or years off work or drops to part-time. Parental Leave Pay helps, but it usually doesn't replace a full salary.
• Baby gear - cot, car seat, pram, bottles, nappies, formula. Nappies alone can be around $25–$40 per week.
• Healthcare - Medicare covers most GP visits and public hospital care, but you'll still pay for things like private specialists, dental, and optometry.

6 – 12 years: Primary school stage

This tends to be the "cheapest" stretch - childcare bills shrink and public primary school is low-cost. Typical expenses include:

• School contributions, uniforms, books, stationery, excursions and camps.
• Before- and after-school care for working parents (partly covered by CCS).
• Sport, swimming lessons, music, or other activities.
• Bigger food bills as kids grow.

13 – 18 years: Teenage years

Costs usually climb again. High school brings extra fees, laptops, textbooks, camps, tutoring, and formal outfits. Teenagers also eat more, grow through clothes faster, and usually want a phone plan. Many families help with driving lessons or a first car in the senior years.

The Biggest Expense Categories

When researchers break down how much to raise a child in Australia, the same categories show up again and again:

1. Housing share

Your rent or mortgage doesn't change dramatically just because you have a child - but families usually need an extra bedroom and a bit more space. Over 18 years, the "kids' share" of housing is typically the single biggest cost, especially in Sydney, Melbourne, and Brisbane.

2. Food

Food is usually the second-largest expense. A young child might add $40–$70 per week to your grocery bill; a teenager can easily add $100 or more.

3. Childcare and education

For families with children under 5, childcare is often the biggest out-of-pocket item. Later, school-related costs (fees, uniforms, devices, excursions, tutoring) take over.

4. Transport

School drop-offs, sport, playdates, family holidays - families drive more. Add fuel, a bigger car, public transport cards, and eventually driving lessons.

5. Clothing and shoes

Kids grow fast. Expect to buy new sizes every 6–12 months in the early years, plus school uniforms, sports gear, and winter clothes.

6. Healthcare

Medicare covers the basics. Families still pay for dental, orthodontics, optometry, and some specialists. Private health insurance is optional.

7. Activities and hobbies

Swimming, soccer, music - budget roughly $20–$60 per week per child for one or two activities.

8. Phones, tech and internet

By high school, most kids need a phone plan and a laptop or tablet for school.

How Schooling Type Changes the Cost

Your choice of school is one of the biggest factors in the average cost to raise a child to 18 in Australia. Australia has three main sectors:

Public (government) schools

Free for Australian citizens and permanent residents apart from voluntary contributions, uniforms, excursions, and devices. Realistically, families still spend around $1,000 – $3,000 per child per year on these extras. Temporary visa holders may pay international fees in some states.

Catholic / systemic schools

Typically the middle option. Fees often range from around $2,000 per year at the primary level to $6,000 – $12,000+ per year at the senior secondary level, depending on the diocese.

Independent (private) schools

The most expensive option. Fees vary enormously - from around $8,000 per year at smaller independent schools to $35,000 – $45,000+ per year at the most expensive Sydney and Melbourne private high schools, before uniforms, camps, and devices.

Sydney, Melbourne or Regional - Does Location Matter?

Yes - quite a lot, mainly because of housing.

• Sydney and Melbourne - Australia's highest rents and mortgages. Childcare and activity fees also tend to sit at the top of the range.
• Brisbane, Perth, Adelaide, Canberra, Hobart - generally cheaper housing than Sydney and Melbourne, but still capital-city prices.
• Regional cities and towns - rent and house prices are often much lower, and school extras can be a bit cheaper. However, food, fuel, and specialist healthcare can cost more.
• Remote areas - housing is cheap in some places but groceries and flights can be very expensive. Access to specialists and childcare may be limited.

For many families, the simplest way to lower the cost of raising a child is to live somewhere with cheaper housing - even if it means a longer commute.

Government Help That Lowers the Cost

Australian families get a surprising amount of help from the government. The main programs are:

Family Tax Benefit (FTB)

Family Tax Benefit comes in two parts. Part A helps with the general cost of raising children and is paid per child. Part B provides extra help for single-parent families and couples with one main income. Both are income-tested.

Child Care Subsidy (CCS)

The Child Care Subsidy pays part of your childcare fees directly to the provider. The percentage depends on your family income and how many children you have in care. Families with more than one child under 5 in care often get a higher subsidy for the younger children.

Parental Leave Pay

Parental Leave Pay provides weeks of government-funded pay at the national minimum wage when you have or adopt a baby. This is separate from any employer-paid parental leave.

Newborn Upfront Payment and Newborn Supplement

A lump sum plus ongoing supplement paid to eligible families who aren't receiving Parental Leave Pay for the same child.

Rent Assistance

Extra fortnightly payment for renters who already receive Family Tax Benefit or certain Centrelink payments - helpful for families in high-rent areas like Sydney.

State and territory help

Most states run free kinder or pre-prep programs, back-to-school vouchers, and active-kids sport rebates. Check your state government website.

Practical Ways to Keep Costs Down

Small choices add up over 18 years.

• Buy second-hand - prams, cots, toys, and clothes from Facebook Marketplace, Gumtree, or local buy-nothing groups.
• Use free council and library programs - story time, playgroups, school-holiday activities.
• Claim every subsidy you qualify for - FTB, CCS, Rent Assistance, back-to-school vouchers.
• Plan for tax time - our tax calculator helps check your offsets and refunds.
• Start a small savings habit early - even $20 a week builds up over 18 years.

Or jump straight to:

• Centrelink Calculator - estimate Family Tax Benefit.
• All SettleAU tools - childcare, rent, tax, visas and more.
• Tax Calculator - work out your take-home pay and refund.

Frequently Asked Questions

How much does it cost to raise a child to 18 in Australia?

Estimates from sources like AMP.NATSEM and the Raising Children Network suggest a typical middle-income family spends somewhere between $300,000 and $500,000 raising one child from birth to age 18. Lower-income families spend less, higher-income families often spend more - especially if they choose independent schooling.

What is the average monthly cost of raising a child?

The average monthly cost of raising a child in a middle-income Australian household is usually around $1,500 to $2,500, once you include food, clothes, activities, healthcare, childcare or school costs, and a share of housing and utilities. Monthly costs are usually higher when kids are in full-time daycare or in the senior years of high school.

What government help is available?

The biggest family supports are Family Tax Benefit (Part A and B), the Child Care Subsidy, Parental Leave Pay, the Newborn Upfront Payment and Newborn Supplement, and Rent Assistance. Most states also offer free kinder and back-to-school vouchers.

Is it cheaper to raise a child in regional Australia?

Usually, yes. Housing is the main saving - rent and mortgages are often much lower outside Sydney and Melbourne. Childcare and activity costs can also be slightly lower. Be aware that food, fuel, and specialist healthcare are sometimes more expensive in regional and remote areas.

How much does a second or third child add?

Each extra child is usually cheaper per head than the first. Families reuse cots, prams, and clothes, buy food in bulk, and often get a higher Child Care Subsidy for additional children under 5. Family Tax Benefit also rises with more children. A common rule of thumb is that each extra child adds roughly 60–70% of the cost of the first, not another full 100%.

Do I need private health insurance for my kids?

No - Medicare and public hospitals cover the essentials, including births, emergency care, and most GP visits. Many families still choose extras cover for dental, optical, and orthodontics. Compare options carefully before signing up.

Official Resources

• Services Australia - Family Tax Benefit
• Services Australia - Child Care Subsidy
• Services Australia - Parental Leave Pay
• Raising Children Network