Cost of Having a Baby in Australia: A Realistic First-Year Budget

💸 How much does a baby cost?🔗

Exact amounts vary by state, hospital and lifestyle, but these ranges are realistic for most Australian families.

The ongoing costs are where the real money goes. A year of nappies, formula, clothing and healthcare adds up faster than most people expect.

🏥 Hospital and birth costs🔗

Public hospital birth. If you give birth as a public patient in a public hospital, Medicare covers your hospital stay, midwifery care and standard obstetric care. For most straightforward births, your out-of-pocket cost is effectively $0. A few things can still add costs: a private room upgrade ($100 to $500 per night), an anaesthetist gap fee for an epidural ($200 to $600), and antenatal classes ($150 to $400).

Private hospital birth. Going private gives you choice of obstetrician, a private room and continuity of care. Even with private health insurance (PHI), most families pay $3,000 to $8,000 or more out of pocket. The main drivers are the obstetrician gap fee ($2,500 to $5,000 or more), the hospital excess ($250 to $750) and the anaesthetist gap. Without PHI, a private birth can run $9,000 to $20,000 or more. Note that most PHI policies have a 12-month waiting period for pregnancy services.

🎯 The essential: The government's Medical Costs Finder lets you search typical fees and out-of-pocket costs by procedure and location. It is worth checking before you commit to a private obstetrician.

🛒 One-off baby gear🔗

These are the purchases you make once (or at least hope to make once). Costs vary enormously depending on whether you buy new, second-hand, or borrow from friends.

A note on car seats: this is the one item where you should not buy second-hand unless you can verify its full history. A seat involved in even a minor accident may be compromised in ways you cannot see. Buy new, or buy from someone you trust completely. A realistic one-off total for a budget-conscious family is around $1,500 to $2,500. Buying everything new and mid-range, budget $3,500 to $5,000.

🍼 Ongoing monthly costs🔗

Once the baby arrives, the spending does not stop. Here is what a typical month looks like.

Without childcare, ongoing costs run roughly $300 to $700 per month for the basics. Most GP visits for babies are bulk-billed, so routine check-ups, immunisations and the six-week check are generally free.

📉 The income hit during leave🔗

This is the part of the baby budget that catches most families off guard. Government Parental Leave Pay (PLP) is paid at the national minimum wage. From 1 July 2026, that is $1,004.70 per week before tax.

If you earn $80,000 a year, your take-home is roughly $1,300 per week after tax. PLP at the 2026-27 rate gives you about $850 per week after tax. That is a gap of around $450 per week, or roughly $1,800 per month less coming in. The gap is wider the more you earn. Some employers top up PLP to full salary, but many do not, so check your enterprise agreement or contract before you plan your leave.

🏛️ Government help you can claim🔗

There is a decent amount of support available. Here is what to claim.

Parental Leave Pay. From 1 July 2026, eligible families can access up to 26 weeks (130 days) of PLP, shared between both parents if partnered, at $1,004.70 per week before tax. To be eligible you generally need to have worked 10 of the 13 months before the birth and earned under the income limit.

Family Tax Benefit Part A and Part B. An ongoing, income-tested payment. Part A pays up to $235.48 per fortnight for a child aged 0 to 12, and Part B up to $200.34 per fortnight when your youngest is under 5. Rates are indexed periodically.

Newborn Upfront Payment and Supplement. When your baby is born you may receive a $683 lump sum plus a Newborn Supplement of up to $2,052.05 over 13 weeks for a first child, so up to $2,735 combined. You need to be eligible for at least the base rate of FTB Part A.

Child Care Subsidy. Once you return to work, the Child Care Subsidy can cover a significant chunk of the fees, up to 90% of the applicable hourly rate for lower-income families. Claiming CCS early is important.

🧾 A rough first-year budget🔗

Here is a worked example for a family choosing a public hospital birth, buying a mix of new and second-hand gear, breastfeeding, and returning to part-time work at six months with childcare three days a week.

Minus government support (Newborn payments plus FTB Part A for 12 months), roughly $4,500 to $6,000 depending on income, the net first-year out-of-pocket spend is around $4,000 to $6,000. Add the income gap during parental leave (say $1,800 a month for six months) and the real financial impact climbs closer to $15,000 to $20,000 when you count the money you are not earning. That is why building a savings buffer beforehand matters so much.

❓ Frequently asked questions🔗