Cost of Raising Kids in Australia — Schools, Childcare, Activities & Hidden Costs (2025-26)

Childcare Costs (Before Subsidy)

Childcare is typically the single largest expense for families with young children — and it comes as a shock to most new arrivals. Here's what you can expect to pay in 2025-26 before the Child Care Subsidy:

At 5 days per week, long day care in Sydney or Melbourne can cost $500–$800 per week before CCS — that's $26,000–$41,600 per year per child. Even with the subsidy, the out-of-pocket cost can be $5,000–$15,000 per year depending on your income.

Child Care Subsidy (CCS) Explained

The Child Care Subsidy (CCS) is a government payment that significantly reduces your childcare fees. It's paid directly to the childcare provider, reducing the amount you pay.

How Much CCS Do You Get?

The percentage of childcare fees covered by CCS depends on your combined family income:

Eligibility Requirements

• Your child must be 13 or under and not attending secondary school
• The childcare service must be approved by the government
• You must meet the activity test — hours of recognised activity (work, study, volunteering, looking for work) determine how many hours of subsidised care you receive
• You must be an Australian resident
• NARWP note: New permanent residents may face a 1-year waiting period for CCS. Check the NARWP guide for details.

School Costs Breakdown

School costs in Australia vary dramatically depending on the type of school. Here's what to expect:

Public Schools (Government)

• Tuition: Free for Australian citizens and permanent residents
• Voluntary contributions: $200–$800 per year (technically voluntary, but there's social pressure)
• Temporary visa holders: $5,000–$15,000 per year per child depending on state (this surprises many families)

Catholic Schools

• Tuition: $2,000–$6,000 per year (primary), $5,000–$12,000 per year (secondary)
• Often offer discounts for siblings and Catholic families
• Good middle ground between public and private in many areas

Independent/Private Schools

• Tuition: $10,000–$35,000+ per year
• Elite schools in Sydney and Melbourne can exceed $40,000 per year for senior years
• Often include compulsory extras: camps, uniforms from specific suppliers, building levies, technology fees

Use our School Comparison tool to compare options in your area.

Uniforms & School Supplies

Nearly all Australian schools — public and private — require students to wear a school uniform. This is a significant upfront and annual cost:

• Public school uniforms: $200–$400 per year (polo shirts, shorts/skirts, jumper, hat)
• Private school uniforms: $400–$1,000+ per year (blazers, ties, specific shoes, sports uniforms, formal uniforms)
• Shoes: $60–$150 per pair (they need replacing every 6-12 months as kids grow)
• Second-hand uniforms: Most schools have a second-hand uniform shop or Facebook group — this can save 50-70% on costs

Back-to-School Supplies

• Stationery pack: $50–$150 (many schools offer pre-made packs you can order)
• Device requirements: Many schools from Year 3+ require a laptop or iPad — $400–$1,200 (some schools have BYO device programs, others lease devices at $200-$400/year)
• School bag: $50–$100
• Lunch box & drink bottle: $30–$60
• Total back-to-school: $100–$200 in stationery, plus device if required

Extracurricular Activities

Extracurricular activities are a significant and often underestimated cost. Australian kids typically participate in at least 1-2 activities:

Healthcare for Kids

One of the great things about raising kids in Australia is the public healthcare system. However, there are still costs to be aware of:

What's Free

• Immunisations: All childhood vaccinations are free under the National Immunisation Program (NIP) — no gaps to pay. This is also linked to CCS and FTB eligibility, so keep vaccinations up to date.
• Bulk-billed GP visits: Many GPs bulk bill for children (meaning no out-of-pocket cost). Ask when booking.
• Public hospital treatment: Free for all Medicare card holders, including emergency department visits.
• Dental: The Child Dental Benefits Schedule provides up to $1,095 over 2 calendar years for eligible children aged 0-17 for basic dental services.

Costs to Budget For

• Non-bulk-billing GP visits: $40–$80 gap fee per visit at some clinics
• Specialist appointments: $100–$300 gap fee for paediatricians, allergists, etc.
• Orthodontics: $6,000–$10,000 total (not covered by Medicare, partially covered by some private health plans)
• Glasses/optometry: $150–$400 per pair
• Ambulance cover: Free in QLD and TAS. In other states, a single trip costs $400–$1,200+. Get ambulance-only cover ($50–$90/year for a family) or ensure your private health insurance includes it.
• Prescriptions: PBS-listed medicines are $7.70 per script (concession) or $31.60 (general) in 2025-26. Children under 16 on a concession card get free prescriptions.

Government Support for Families

Australia provides several payments to help with the cost of raising children. Understanding these can significantly reduce your expenses:

Family Tax Benefit Part A

Paid per child based on family income and the child's age:

• 0-12 years: Maximum ~$200 per fortnight per child
• 13-15 years: Maximum ~$260 per fortnight per child
• 16-19 years (in school): Maximum ~$260 per fortnight per child
• Reduces as family income increases above ~$62,000

Family Tax Benefit Part B

An extra payment for single parents or families with one main income:

• Youngest child under 5: Maximum ~$174 per fortnight
• Youngest child 5-18: Maximum ~$121 per fortnight
• Means-tested on the lower earner's income (must earn less than ~$29,000)

Other Support

• Paid Parental Leave: Up to 22 weeks at the national minimum wage (~$882/week before tax) for eligible parents
• Newborn Supplement: ~$600 for first child, ~$400 for subsequent children (if not receiving Parental Leave Pay)
• Schoolkids Bonus: Discontinued (was $400-$800/year) — no longer available

Hidden & Overlooked Costs

Beyond the obvious expenses, there are costs that catch many families off guard:

Birthday Parties

Australian kids' birthday parties are a thing. Your child will be invited to parties most weekends, each requiring a gift ($15–$30). Hosting your own child's party costs $200–$500 for a home party or $300–$800+ for a venue (trampoline park, bowling, laser tag, play centre). Multiply by the number of kids and their social circles.

School Excursions & Camps

• Day excursions: $15–$50 each, 2-4 per term
• School camps: $150–$500 per camp (typically 1-2 per year from Year 3+)
• Year 6 farewell/graduation: $100–$200
• High school formal: $300–$700 (dress/suit, tickets, transport, photos)

Food & Lunches

• Packed school lunch ingredients: $25–$40/week per child
• Canteen/tuckshop if buying: $5–$8 per meal (adds up to $25–$40/week)
• Snacks, groceries, and growing appetites: children's food costs increase significantly as they become teenagers

Transport

• If driving to school: fuel, second car costs
• Public transport: free or heavily subsidised for school students in most states (School Opal card in NSW, Myki school pass in VIC)
• Driving kids to activities: multiple trips per week for sports, music, playdates

Total Estimated Annual Cost by Age

Here's a realistic breakdown of what it costs to raise one child per year in Australia, including all major expense categories:

These figures assume public schooling. For Catholic schools, add $2,000-$6,000/year. For independent schools, add $10,000-$35,000/year.

Tips to Reduce Costs

Australian families use many strategies to manage the cost of raising kids. Here's a practical checklist:

1. Maximise your CCS — ensure both parents meet the activity test to get maximum subsidised hours. Even 8 hours of volunteering per fortnight counts.
2. Buy second-hand uniforms — every school has a second-hand uniform shop or Facebook group. Kids outgrow uniforms before they wear them out.
3. Claim FTB promptly — lodge your claim as soon as eligible. Backdating is limited.
4. Use community sports — council-run programs, parkrun (free for kids too), and community clubs are much cheaper than commercial programs.
5. Bulk buy school supplies — Officeworks price-matches and has back-to-school sales in January.
6. Swap and share — children's clothes, toys, and books have short lifespans. Buy/Swap/Sell groups on Facebook save thousands.
7. Check the dental schedule — use the full $1,095 Child Dental Benefits Schedule before it expires every 2 years.
8. Look into vacation care alternatives — grandparents, family friends, or cooperative arrangements with other families during school holidays.
9. Budget for the annual cost spike — January/February is expensive (back-to-school, activity registrations, uniform purchases). Save throughout the year for this.
10. Use free school holiday activities — libraries, museums (many have free kids' programs), parks, and council events run free activities every school holiday.

Frequently Asked Questions

How much does childcare cost in Australia in 2025-26?

Long day care costs $100–$160 per day before the Child Care Subsidy (CCS). With CCS, families pay significantly less — the subsidy covers 24% to 90% of fees depending on household income. A family earning $80,000 would receive approximately 90% subsidy, paying around $10–$16 per day out of pocket. Family day care is slightly cheaper at $80–$120 per day before CCS.

Are public schools really free in Australia?

Public schools are tuition-free for Australian citizens and permanent residents. However, there are "voluntary" contributions ($200–$800/year that most families pay), plus mandatory costs for uniforms ($200–$500/year), excursions, stationery, and device requirements. The total real cost of public schooling is typically $1,000–$2,500/year. For temporary visa holders, public school fees range from $5,000 to $15,000 per year depending on the state.

What is the Child Care Subsidy and who is eligible?

The CCS is a government payment that reduces your childcare fees by 24–90% depending on family income. To be eligible, your child must be 13 or under, attend an approved childcare service, and both parents must meet the activity test (working, studying, or volunteering a minimum number of hours). New permanent residents may face a 1-year NARWP waiting period.

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

Annual costs vary significantly by age. Babies (0-2) are the most expensive at $20,000–$30,000/year (mainly due to childcare), preschoolers cost $15,000–$25,000, primary school children $10,000–$18,000, and teenagers $12,000–$22,000. These figures cover childcare or school fees, food, clothing, healthcare, activities, and other regular expenses. The total birth-to-17 cost for a middle-income family is approximately $250,000–$350,000.

What is the Family Tax Benefit in Australia?

Family Tax Benefit (FTB) comes in two parts. Part A pays up to ~$200/fortnight per child aged 0-12 and ~$260/fortnight for 13-19 year olds in school, reducing as family income increases above ~$62,000. Part B pays up to ~$174/fortnight for single parents or families where the second earner makes less than ~$29,000. Both are subject to NARWP for new arrivals. Check our Childcare Guide for more details.

Do I need ambulance cover for my kids in Australia?

In Queensland and Tasmania, ambulance services are free for all residents. In all other states, a single ambulance trip can cost $400–$1,200+ without cover. Most private health insurance policies include ambulance cover. If you don't have private health insurance, standalone ambulance cover costs just $50–$90/year for a whole family — highly recommended when you have active kids.

Disclaimer: This guide provides general information only and is current as of April 2026. Costs, government payments, and eligibility rules change regularly. School fees vary significantly between institutions. Always check current rates with individual schools, childcare providers, and Services Australia for the latest CCS and FTB rates. SettleAU is not affiliated with any school, childcare provider, or government body. Not financial or legal advice.