What is the cost of raising a child in Australia?
There are a few different answers to that. We looked at a couple of studies and found the estimates ranged from $159,120 to $548,500 over 18 years.
A
2018 research by the Australian Institute of Family Studies (AIFS) shows that it costs low-paid families $340 a week to raise 2 children, a 6-year-old girl and a 10-year-old boy, which is roughly $170 per child. That's
$8,840 every year or
$159,120 for 18 years per child.
For unemployed families, the cost of raising 2 children of the same ages was $280 a week or roughly $140 per child. That's
$7,280 every year or
$131,040 for 18 years. Again, per child.
However, a
2013 report by the University of Canberra came up with completely different figures.
The earlier study created profiles for 3 different families: lower income, middle income and higher income. It found that the cost of raising 2 children would likely range from $474,000 to $1,097,000 over the course of their childhood.
For 1 child, that's an estimate of
$13,166 to $30,472 every year or
$237,000 to $548,500 over 18 years.
It's no secret that since then the cost of living has changed. The Consumer Price Index - which measures the average price change of goods and services - has gone up by 22% from 2018 to 2024. This accounts for the majority of child-related costs like food, utilities, and education. If we adjust the numbers from the 2018 AIFS, it's likely that the cost of raising two children is upwards now closer to $11000 per year for a low-paid family.