How much does it cost to raise a child in Australia?
Research from the Association of Superannuation Funds of Australia (ASFA) puts the total cost of raising a child to age 18 at approximately $474,000 for a middle-income couple in 2023–24. That works out to roughly $26,000 per year on average — though costs vary enormously depending on the child's age, school type, and family spending style. If you are planning the earliest stage of that journey, our cost of having a baby guide is the right place to start.
The biggest costs at each stage
Newborn to age 4 — the childcare years
The first five years are dominated by childcare costs. Full-time centre-based care can cost $22,000–$30,000 per year before the Childcare Subsidy (CCS). After CCS, most middle-income families pay $8,000–$15,000 per year. Family day care typically costs less. Healthcare costs are also higher in the infant years due to GP visits, immunisations, and dental checks.
Childcare is also the point where broad family planning turns into a practical decision about provider type, days in care, and whether work still stacks up. Use our childcare cost guide for the national benchmarks, then compare childcare options before locking in a care arrangement.
Ages 5 to 11 — primary school years
Childcare costs drop significantly once kids start school. The costs shift toward school fees, uniforms, excursions, and after-school activities. Food costs rise steadily. For public school families, this is the most affordable phase. Private school families begin paying significant annual fees — often $15,000–$25,000 or more from Year 1.
Ages 12 to 17 — the most expensive stage
Secondary school is the costliest period outside of childcare. School fees are higher, teenagers eat more, smartphones and laptops become necessary, sport and activities grow more competitive (and expensive), and transport independence adds ongoing costs. Teenagers are also eligible for paid work, which can offset some costs.
What the Childcare Subsidy covers
The government's Childcare Subsidy (CCS) significantly reduces out-of-pocket childcare costs for most Australian families. The subsidy applies to approved care including long day care, family day care, and outside school hours care.
If you need to understand the rules behind that reduction, start with how the Child Care Subsidy works. If you are trying to decide whether work still makes financial sense once childcare starts, move from this long-term view into the return-to-work calculator.
Annual cost comparison: one vs two children
Raising a second child does not cost double. Many costs are shared — housing is already larger, car seats get reused, and older children's clothing gets handed down. Economies of scale typically reduce the per-child cost for a second child by 15–25%. A rough rule of thumb: two children cost about 1.75× the cost of one.
How childcare fits into the broader family-cost picture
Childcare is often one of the largest ongoing child-related costs, but it is only one part of the broader decision framework. Families usually need to move between three questions: what care costs, what government support reduces it, and whether returning to work still leaves enough net income after fees and tax.
That is why this calculator works best alongside the childcare cost guide, the childcare options comparison, and the return-to-work calculator.