Costs, Timing and Tax

This question is relative to how lavish or resourceful you want to be on the subject.

The Australian Institute of Family Studies estimate that a first child can cost between $3,000 and $13,000 in the first year.

Some people go all out and buy the most expensive of everything that is available and others simply stick to the essentials. For ease, we’ve broken down what these costs may be to essentials and optional extras. Some of these items may switch categories depending on your personal preferences and approach. 

The Essentials

• During pregnancy and for the birth itself there may be costs for doctor and hospital bills, ultrasounds and medical tests, antenatal classes, and maternity clothes for mum. Medicare will cover most of these things however if you have private health insurance there will be out-of-pocket costs including visits to your obstetrician.
• Nutrition and Food – Even if your baby breastfeeds well in some cases they start to get interested in food as early as 4 months old. If you make your own mushy food it will obviously be cheaper than buying baby food in a jar. Many parents do a combo of both in those initial eating months particularly if you’re learning to juggle child care with work.
• Nappies – If you go disposable you will be need about 10 nappies a day to start off with and up to 3,000 in the first year. If you go cloth the initial investment is greater but you don’t need to ongoingly buy them. Saying that you will still need washing powder and electricity to wash and dry them.
• Clothing and Footwear – Babies grow so quickly. One week they will be one size of singlet and the next they’ve gone up size. So, if you’re into expensive clothes be aware they will only be worn for a short period of time.
• Bottles, formula and breast pump if the baby doesn’t latch on and requires a bottle to be fed. This is an optional extra if you have a happy breastfeeding baby.
• Childcare – this is an essential if both parents want to return to work within the first year of their baby being born. This is often the most expensive cost for new parents in the modern world so it’s smart to start thinking about your options early. Ideally you want a service provider that has a nurturing environment like home and is close to home or work in location. This is the time to find out what Government child care rebates you are eligible for and weigh up the cost of child care against how much you’re earning.
• Toys – Essential for a baby’s gross motor skills, toys don’t have to be expensive particularly if you make your own
• Furniture
  • A cot including mattress, sheets and blanket that considers safety and comfort
  • A pram that’s easy to use and that has storage
  • Car seat – by law in Australia you are required to have a rear-facing baby car seat to travel with a child under 6 months old.
  • High chair – when baby is able to sit upright they will need something to eat from. Dining chairs or stools won’t cut it in the first few years.

Optional Extras

• Upgrades and premiums – there’s no doubt a $500 pram with sturdy cross-country wheels is going to be easier to manoeuvre (and more enjoyable to push) than a $10 stroller with hard plastic wheels the size of your palm. You can go to town with baby products. Saying that you can get quality products second hand
• Furniture
  • Change Table – some may see this as an essential but after about two months of having your baby you realise you can change a nappy in quite a few places – from the bed to the picnic blanket, to the back seat of a car. So long as you have a fresh nappy and wipes you are good to go.
  • Nursing Chair – for those mid night wake ups it’s quite good to have a comfy chair that support with feeding – whether it’s mum breastfeeding or dad bottle feeding. Add a matching foot stool and you may feel more like you’re in bed and nod off

There may be hidden costs as well

Some costs may not be clear before you arrive at the birth

• Unexpected medical bills and unplanned doctor visits if mum or baby are unwell, the birth doesn’t go to plan or you need extra support
• Utility bills will increase – think more laundry and dishwashing, adjusting the thermostat to ensure baby is kept cool in the summer, warm in the winter.
• Loss of income, super and/or promotions – this will vary depending on how you work your leave arrangements, what child care path you pursue, employee benefits you can access, and Government support you are eligible for.

Visiting and talking to the carers will be your best chance of finding the best fit for your child. If possible, try to drop into the centre or facility outside of your appointment time so that you can see how things really work and try to visit at a couple of different times of the day.