How much does it cost to have a baby in Australia?

Around 300,000 babies are born in Australia each year, according to the Australian Bureau of Statistics, and if you are preparing for the arrival of a newborn, congratulations! Like many parents-to-be, you may be wondering how much it costs to have a baby. Here are a few tips to help budget for the cost of your baby.

If you are thinking about starting (or adding to) a family sometime in the near future, it’s always useful to know what’s likely to be in store financially so you can prepare in advance. Here are some points to think about when working out the cost of having a baby in Australia.

How much does a baby cost?

A new baby can be surprisingly budget-friendly if you stock up on pre-loved equipment and hand-me-downs. Or, the sky can be the limit if you plan on buying brand new designer gear.

For most of us, the cost of having a baby is likely to fall somewhere in the middle. As a guide of what you could be up for, parenting website newbornbaby.com.au suggests allowing for the following expenses:

Setting up your home:

• Cot and mattress – expect to pay about $100 to $750
• Cot linen – allow around $150
• Change table – budget for $70 to $600
• Set of drawers for baby clothes – allow about $90 to $600
• Comfortable chair for feeding your baby – expect to pay from $90 to $500

Cost in baby’s first year: $500 to $2,600

Nappies:

• Disposable – budget for around $40 per week, or about $2,080 in the first year.
• Cloth – newbornbaby.com.au suggests allowing around $1,000 to buy all the cloth nappies you will need.

Cost in baby’s first year: $1,000 (cloth – excludes cost of laundering) to $2,080 (disposables).

Food for baby:

• Breastfeeding – breastfeeding costs next to nothing assuming there are no costs like seeing a lactation consultant, however, if you plan to buy a breast pump, allow upwards of about $150.
• Formula – allow about $30 per tin of formula. Expect to use at least one tin of formula each week for at least the first six months and potentially slightly less after your baby starts eating solid food.
• Solids – the health.gov.au website says babies can begin to eat solids from age six months. Newbornbaby.com.au suggests budgeting for around $5 per day for the cost of readymade baby food though making your own will likely be cheaper.

Cost in baby’s first year: $1,060 (breastfeeding plus solids) to $2,470 (formula plus solids)

Maternity wear: allow about $250

Baby wear: budget for about $500 in the first year

Transport: You’ll need to budget for the cost of taking your baby with you wherever you go. According to retailer Baby Bunting, essential equipment can come with the following price tags:

• Baby capsule – a capsule fitted to your car will be suitable for your baby for the first six months. Expect to pay upwards of about $300
• Car seat – Allow around $300
• Pram – Budget for a minimum cost of about $400

Cost in baby’s first year: $1,000

The table below summarises all these different costs according to the lower and upper price estimates.

Cost of having a baby

← Scroll sideways to view full table →

Hospital excess and gap payments

Even with private health insurance in place, you may still need to budget for an excess and/or a co-contribution or gap payment if you decide to have your baby at a private hospital.

You can check the details of your excess and co-contributions with your health fund. By way of example, Bupa’s surgery cost calculator suggests delivering a baby via caesarean (C-section) can cost $11,476 through the private system, but this cost can be significantly reduced through private health insurance. Bupa suggests that as well as an applicable excess, there may be an average out-of-pocket cost of $339. This hypothetical example has certain cost assumptions, such as being a Bupa Members First or Network Hospital customer with no additional co-payment, as well as you having served relevant waiting periods. Bupa says you “shouldn’t expect to be out-of-pocket more than $745”.

Ways to save on the cost of a baby

Starting a family can be a wonderful experience. But the extra costs of pregnancy, childbirth and raising your baby can come at a time when household income is thinly stretched – especially if one parent takes extended leave.

The good news is that there are plenty of ways to save without scrimping on the quality of care your newborn enjoys. Here are some tips to consider.

• Borrow or buy pre-loved – you probably won’t get a lot of wear out of maternity garments and clothing in very small sizes for your newborn. If “brand new” is not overly important to you, many items of clothing and other pieces of baby gear can be picked up secondhand from op shops or on websites such as Gumtree. Or, let friends and family know you’re happy to accept hand-me-downs.
• Hire a baby capsule – items like car restraints shouldn’t be purchased secondhand (in case they’ve been in a car accident or could be unsafe for another reason, such as the age of the seat not meeting legal requirements). However, it’s likely your newborn will quickly outgrow a capsule – often within the first six months, and they can be cheaper to hire than to buy new. Google ‘capsule hire’ for your area to see what’s available from a reputable lender. Keep in mind that it’s extremely important to be aware of the safety standards that apply for child restraints if you are a parent (or soon to be one). You can find out more from Product Safety Australia and the ACCC. If you are buying a child seat, it can also be worthwhile to get it professionally installed for safety reasons.
• Remember, pricey doesn’t always mean best – some parents believe it’s worth paying more for baby-related items. However, you shouldn’t feel guilty if your budget doesn’t stretch to top-of-the-range products. You can consider being selective too. Your baby is unlikely to notice that you’re buying a more affordable brand of nappy bags!
• Tap into benefits – a bit of extra cash always comes in handy when a new baby arrives. You may be eligible for paid maternity leave or parental leave pay through Services Australia or directly through your employer. Government-assisted benefits can include the Newborn Upfront Payment of $595 and supporting Newborn Supplement, and Family Tax Benefit Part A, which can be worth up to a total of $1,785.42 for the first 13 weeks following the birth of your baby, depending on your income.

Fortunately, babies don’t arrive entirely unannounced. Use your pregnancy to budget and save for the costs of your baby, and take advantage of opportunities to pick up discounted purchases at sales. A bit of forward planning can help your finances stay in good shape, so you won’t have to worry about money matters so much when your newest family member arrives.

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