The cost of raising two or more children in Australia has risen to at least $36,500 a year, according to new analysis commissioned by The Parenthood, with the overall cost of running a family increasing 134{0931a9b6576c5d87fe846c236d3725957ace4ff7894c2ecd00b9029ccfe6a5f9} over two decades.
The analysis by consultancy Connell Griffin found household income increased by 102{0931a9b6576c5d87fe846c236d3725957ace4ff7894c2ecd00b9029ccfe6a5f9} over the same period. Childcare now accounts for 33{0931a9b6576c5d87fe846c236d3725957ace4ff7894c2ecd00b9029ccfe6a5f9} of the total cost of having children, compared with 27{0931a9b6576c5d87fe846c236d3725957ace4ff7894c2ecd00b9029ccfe6a5f9} in 2003.
The Parenthood chief executive Georgie Dent is due to address the National Press Club in Canberra on Wednesday, where she is expected to discuss the financial pressures facing families with young children.
Dent is expected to argue that Australian women lose an average of 55{0931a9b6576c5d87fe846c236d3725957ace4ff7894c2ecd00b9029ccfe6a5f9} of their earnings over the first five years of parenthood. The figure is part of The Parenthood’s advocacy for changes to childcare and paid parental leave.
The Parenthood is calling for a pathway towards 52 weeks of government-funded paid parental leave, compared with the current 26-week scheme. The organisation has also called for meaningful leave for fathers and partners.
The current federal Paid Parental Leave scheme provides up to 26 weeks for eligible families from 1 July 2026, with reserved days for each parent. Services Australia confirms the 2026-27 scheme provides up to 130 days, equivalent to 26 weeks on a five-day working week.
The Parenthood has also backed moves towards universal early childhood education and care, including better-paid workers, controls on fees and a national commission.
The latest figures come as Australia’s long-term demographic outlook is also under discussion. The federal government’s 2026 Intergenerational Report projects fertility falling to 1.34 children per woman by 2065-66, compared with 1.5 in 2030-31. It also projects that deaths will eventually exceed births as the population ages.
The report says Australia’s population is projected to reach 39.3 million in 2065-66, lower than previously forecast. Treasury also expects population growth to slow over the next four decades.
The government has said it remains committed to the ambition of moving towards a universal childcare system. Treasurer Jim Chalmers has described the policy as a series of steps, including existing childcare funding measures and a $1 billion programme to build centres in areas with poor access.
The new cost figures are advocacy research commissioned by The Parenthood rather than government statistics. The findings therefore provide an estimate of the financial burden on families under the methodology used by Connell Griffin.
Australia By Aussie previously reported on the government’s approach to childcare and birth rates. Read the earlier report on childcare and Australia’s birth-rate debate.
Sources: The Guardian; The Parenthood; Australian Government, Treasury; Services Australia.
