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Cost of raising children in Australia rises 134% in two decades

New research indicates that the cost for Australian families to raise two or more children has increased by 134% over two decades, reaching at least $36,500 annually.

  • The cost of raising two or more children in Australia has risen by 134% in two decades to at least $36,500 a year.
  • Household income in Australia has grown by 102% over the same period.
  • Childcare costs now account for 33% of the total cost of having children, up from 27% in 2003.

New research reveals that the cost for Australian families raising two or more children has increased by 134% over the past two decades, now standing at a minimum of $36,500 annually. This data, released by advocacy group The Parenthood on Wednesday, highlights a significant rise in family expenses.

In contrast, household income has grown by 102% during the same period. Childcare costs are a major contributor to this burden, now making up 33% of the total cost of having children, an increase from 27% in 2003, according to analysis by Connell Griffin.

Parenthood chief executive Georgie Dent is scheduled to address the National Press Club in Canberra on Wednesday. She is expected to argue that having children reduces Australian women's earnings by an average of 55% over the first five years of parenthood.

Dent plans to advocate for a government policy pathway to provide 52 weeks of paid parental leave, an increase from the current 26 weeks, and meaningful parental leave for fathers and partners. She will also urge the Labor government to pursue its policy goal of a universal childcare system, which would include well-paid workers and fee controls, alongside the establishment of a new national commission.

Treasurer Jim Chalmers stated on Tuesday that the government remains committed to moving towards a universal childcare system in Australia. Consulting firm Deloitte has been commissioned to assist in designing this system, with its report on the policy pathway expected before the next election.

Why this matters: The rising cost of raising children, particularly childcare expenses, is outpacing income growth in Australia, potentially impacting family financial stability and women's earnings.

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