Home / Business and Economy / Aussies Priced Out of Parenthood?
Aussies Priced Out of Parenthood?
22 Sep
Summary
- Annual cost of raising one child is $17,800.
- Birth rate has fallen 25% since 2008.
- Family costs rose 32% more than incomes.
Parenting in Australia is becoming prohibitively expensive, leading many to reduce their intended family size, according to leading parenting advocate Georgie Dent. The Parenthood reports that raising one child costs approximately $17,800 per year, with two or more children exceeding $36,500 annually.
This financial strain is a significant factor in Australia's declining birth rate. The national fertility rate is projected to drop to 1.34 by 2065-66, well below the replacement level of 2.1. This contrasts with the stated desires of Australians, who generally wish to have two children.
Over the past two decades, the cost of running a family has increased by 32% more than income growth. Childcare alone now constitutes 33% of the total cost of raising a child. This expense is particularly acute for families in regional and remote areas, with 86% experiencing financial stress due to childcare access issues.
To counter this trend, experts advocate for policy changes, including extending paid parental leave to the OECD average of one year and providing universal, affordable, and accessible childcare. Such measures could significantly alleviate the financial burden on parents, potentially enabling them to afford the number of children they desire.
