Family Money Calculators

The Real Cost of Having Kids — and the Support That's Available

Kids are expensive. The commonly cited figure of $300,000 to raise a child to 18 is rough, but it's not wrong. What catches most families off guard isn't the big costs — it's the accumulation of small ones that compound over years. Here's a practical overview of the financial support available and the tools to help you plan.

Family Tax Benefit — Part A and Part B

Family Tax Benefit is Centrelink's main payment for families with children. It comes in two parts. FTB Part A is based on family income and number of children. In 2025, the maximum rate is around $222/fortnight per child under 13, and $288/fortnight per child 13–19 in secondary school. The payment reduces as family income rises, with no Part A payable for a couple earning above approximately $115,000 combined (exact threshold varies by number of children). FTB Part B is for single-income families or couples where one partner earns under $100,900 and the primary earner earns under $100,900. It's worth up to around $183/fortnight for children under 5. Both payments are adjusted annually — check the Services Australia website for current rates as these change each July.

Paid Parental Leave — what you're entitled to

From July 2025, the government's Paid Parental Leave (PPL) scheme provides up to 22 weeks of leave paid at the minimum wage (around $915/week before tax). This is gradually increasing to 26 weeks by 2026. PPL is now more flexible — it can be shared between partners and taken in blocks rather than all at once. To qualify, the primary carer must have worked at least 10 of the 13 months before the birth/adoption and earned under $168,865 in the previous financial year. Many employers also offer employer-funded parental leave on top — check your enterprise agreement or employment contract. Use the Take Home Pay calculator to see what your income looks like during parental leave when payments replace your salary.

Childcare Subsidy — how the CCS works

The Childcare Subsidy (CCS) is an income-tested subsidy paid directly to childcare providers to reduce your gap fee. Families earning under approximately $80,000/year (2025 threshold) receive up to 90% subsidy. The subsidy percentage tapers as income rises, reaching 0% at around $365,000. The number of subsidised hours also depends on your family's activity level — work, study, volunteering, and job searching all count. For families with two or more children in care, higher subsidy rates apply for the second and subsequent children. Use the Services Australia online estimator at my.gov.au to get a personalised CCS percentage based on your income and circumstances.

Budgeting for a new baby

The first year is front-loaded with big purchases: pram ($500–$2,000), cot ($200–$800), capsule and car seat ($300–$600), breast pump if needed ($150–$400), nappies and feeding supplies. A quality pram like the Baby Jogger City Mini or similar holds its resale value well — it's worth spending more here. After the big-ticket items, the ongoing costs are: nappies ($60–$120/month), formula if not breastfeeding ($150–$250/month), childcare ($150–$250/day before CCS), and medical costs. Build a specific baby budget in the Budget Planner calculator separate to your regular household budget so the numbers are visible.

For a practical Australian guide to navigating the first year, The Calm Baby Book by Carly Grubb is widely recommended among Australian parents for evidence-based sleep and feeding guidance.

Meal planning as a family budget lever

Food is one of the biggest and most controllable household expenses for families. The average Australian family spends $240–$360/week on groceries depending on family size and location. Planning weekly meals around what's on special (the Woolworths and Coles apps both show weekly specials) and cooking from scratch for batch meals cuts grocery spend by 20–30% without sacrificing nutrition. Slow cooker and air fryer meals are efficient for busy families — batch cooking on Sundays and freezing portions saves both time and money through the week.

Electricity and water — reducing household running costs

Families use significantly more energy and water than couples. Children increase hot water use, laundry frequency, and screen-on time. Use the Electricity Usage calculator to identify your biggest consumption items and the Water Usage calculator for water costs. Solar panels pay back faster for family households because consumption is higher and more consistent. Check your state government's energy concession — most states offer a rebate for low-income families and households with concession cards.