Having a Baby in Australia
A practical and financial guide covering everything from parental leave entitlements to childcare costs, CCS, and what to expect when you return to work.
Parental leave entitlements
Australian parents are entitled to a combination of government-paid and (sometimes) employer-paid parental leave. Understanding what you're entitled to is the first financial step.
Government Parental Leave Pay
The federal government pays Parental Leave Pay at the national minimum wage for a set number of weeks. For 2025–26, this is up to 22 weeks (approximately $916/week before tax). The scheme is being expanded — 24 weeks from July 2026 and 26 weeks from July 2026-27.
To be eligible you must be the primary carer of a newborn or recently adopted child, meet the work test (worked at least 10 of the 13 months before the birth, for at least 330 hours), and meet the income test (individual adjusted taxable income under $168,865 in 2024–25).
Dad and Partner Pay
From July 2023, Dad and Partner Pay was rolled into the main Parental Leave Pay scheme, allowing parents to share the leave more flexibly. Families can now split the leave weeks between both parents rather than needing separate claims.
Employer parental leave
Many employers — particularly large organisations and government — offer additional paid parental leave on top of the government scheme. This can range from a few weeks to 16–26 weeks at full pay. Check your enterprise agreement, Modern Award, or employment contract.
Government Parental Leave Pay can be received at the same time as employer parental leave in most cases. Always apply for both — they're not mutually exclusive.
The real cost of having a baby
Costs vary enormously depending on whether you choose public or private hospital care, and the choices you make around equipment and products.
| Item | Budget | Mid-range |
|---|---|---|
| Hospital birth (public) | Free | Free |
| Hospital birth (private) | $0–2,000* | $3,000–8,000* |
| Pram / stroller | $200–400 | $800–1,800 |
| Car seat (capsule + convertible) | $200–350 | $500–900 |
| Cot and mattress | $150–300 | $400–900 |
| Nappies (first year) | $600–800 | $1,000–1,400 |
| Clothing (first year) | $200–400 | $600–1,200 |
| Formula (if not breastfeeding) | $1,200–1,800 | $2,000–3,000 |
| Baby monitor, bouncer, other | $300–500 | $800–1,500 |
* After Medicare and private health insurance rebates. Gap costs vary significantly by hospital and obstetrician.
Childcare costs and the CCS
Once your parental leave ends, childcare becomes the dominant financial consideration for most Australian families. Long day care costs vary significantly by location:
The Child Care Subsidy (CCS) significantly reduces these costs for most families. Families earning under $83,280/year receive a 90% subsidy. The subsidy tapers as income rises and phases out above $530,000. Use our Return to Work Calculator to see your estimated CCS and net childcare cost.
Family Tax Benefit
Family Tax Benefit (FTB) is paid in two parts:
FTB Part A — helps with the cost of raising children. The maximum rate is $222.04 per fortnight per child under 13 (2026 rate), tapering based on family income. Most families with income under $60,000 receive the maximum.
FTB Part B — for single-parent families and families where one parent earns significantly less. The secondary earner's income must be under $100,900. Worth applying for if one parent takes extended leave on reduced income.
Claim through myGov / Services Australia. Apply as soon as you register your child's birth — some payments aren't backdated.
Returning to work
The decision about when and whether to return to work is one of the most emotionally and financially charged decisions new parents face. The numbers don't always tell the full story — but knowing them helps.
Key things to factor in: your after-tax take-home pay at your planned hours, net childcare cost after CCS, transport, and any government payments that will reduce when you return. Our calculator handles all of this:
👶 Run the numbers with our Return to Work Calculator →