Key facts
- The cost of raising two children in Australia has risen 134% in two decades.
- Annual costs for families with two or more children are at least $36,500.
- Household income has grown 102% in the same period.
- Childcare costs now account for 33% of the total cost of raising children, up from 27% in 2003.
- Australia's fertility rate is projected to fall to 1.34 by 2065-66.
- The government aims to implement a universal childcare system.
The cost of raising two children in Australia has surged by 134% over the past two decades, reaching at least $36,500 annually, according to new research released by advocacy group The Parenthood. This significant increase outpaces the 102% growth in household incomes during the same period.
Connell Griffin's analysis, cited by The Parenthood, shows that childcare costs now constitute 33% of the total expense of raising children, a rise from 27% in 2003. Parenthood chief executive Georgie Dent is set to address the National Press Club, highlighting that having children reduces Australian women's earnings by an average of 55% in the first five years of parenthood.
Dent will argue that dual incomes are now essential for families to manage financially, yet household budgets remain tight. She plans to call for government action, including 52 weeks of paid parental leave and a universal childcare system with fee controls and well-paid workers. This push comes as an intergenerational report projects Australia's fertility rate to fall to 1.34 by 2065–66, below the replacement level.
Treasurer Jim Chalmers affirmed the government's commitment to a universal childcare system, describing it as a series of steps rather than an immediate overhaul. He pointed to existing initiatives like the three-day childcare funding guarantee and a program to build new childcare centers as progress toward this goal.