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.
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.
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.
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.