Having a Baby: Financial Guide
Plan financially for your new arrival with government payments, cost estimates, and budgeting tips.
$15,000
First Year Cost
24 wks
Paid Parental Leave (26 wks from 1 Jul 2026)
90%
Max Childcare Subsidy
$222
FTB Part A /fortnight
👶 Paid Parental Leave (FY 2025-26)
The Government provides up to 24 weeks of Parental Leave Pay at the national minimum wage rate (rising to 26 weeks for births from 1 July 2026).
$189.62
Per day (before tax) · $948.10/wk
24 weeks
Current (26 weeks from 1 Jul 2026)
$22,754
Total max (gross) · 24 weeks
Eligibility Requirements:
- • Worked at least 10 of the 13 months before birth
- • Worked at least 330 hours in that 10-month period
- • Individual income under $175,788 (FY 2025-26)
- • Primary carer of the child
Government Payments for New Parents
| Payment | Amount | Duration | Notes |
|---|---|---|---|
| Paid Parental Leave | $189.62/day ($948.10/wk) | Up to 24 weeks (26 weeks from 1 Jul 2026) | Income tested ≤ $175,788 |
| Family Tax Benefit Part A | Up to $231.42/fortnight | Ongoing | Per child, income tested |
| Family Tax Benefit Part B | Up to $196.94/fortnight | Ongoing | Single income families |
| Newborn Upfront Payment | ~$691 | One-off | If eligible for FTB Part A |
| Newborn Supplement | Up to $2,128 | 13 weeks | If no PPL received |
| Child Care Subsidy | Up to 90% | Ongoing | Income tested (≤ $85,279 for 90%) |
Child Care Subsidy (CCS)
CCS helps cover childcare costs based on your family income:
| Family Income | Subsidy Rate |
|---|---|
| $0 - $83,280 | 90% |
| $83,281 - $178,280 | 90% to 50% |
| $178,281 - $256,280 | 50% to 20% |
| $256,281+ | 20% to 0% |
Example: Family income $100,000, childcare $150/day = CCS pays ~$120/day. You pay ~$30/day.
Baby Cost Estimates
| Category | One-off Cost | Monthly Cost | Notes |
|---|---|---|---|
| Nursery Setup | $2,000-5,000 | - | Cot, change table, drawers |
| Pram/stroller | $500-2,000 | - | Can buy second-hand |
| Car seat (capsule) | $200-600 | - | Must be Australian certified |
| Baby clothes (first year) | $500-1,500 | - | They grow fast! |
| Nappies (disposable) | - | $80-150 | $960-1,800/year |
| Formula (if not breastfeeding) | - | $150-250 | $1,800-3,000/year |
| Baby food (6-12 months) | - | $50-150 | Or make your own |
| Childcare (full-time) | - | $2,000-3,500 | Before CCS subsidy |
Money-Saving Tips for New Parents
Buy Second-Hand
- • Prams (clean and inspect well)
- • Baby clothes (they outgrow fast!)
- • Toys and books
- • Nursery furniture
- NOT: Car seats (safety)
Smart Choices
- • Breastfeed if possible (free!)
- • Make baby food (cheaper & healthier)
- • Consider cloth nappies
- • Accept hand-me-downs
- • Join parents groups for tips
Financial Preparation Checklist
Before Baby Arrives
- ☐ Build emergency fund (3-6 months)
- ☐ Check employer parental leave policy
- ☐ Apply for Parental Leave Pay
- ☐ Review health insurance (hospital)
- ☐ Update budget for reduced income
- ☐ Pay down high-interest debt
After Baby Arrives
- ☐ Register birth (Medicare card)
- ☐ Apply for Family Tax Benefit
- ☐ Update tax details (dependant)
- ☐ Add baby to health insurance
- ☐ Update will and life insurance
- ☐ Set up child savings account