Australia is facing a significant decline in its fertility rate, with new data indicating that the total fertility rate (TFR) is projected to drop to 1.42 children per woman by 2025–26. This figure is well below the replacement level of 2.1, reflecting a growing trend of couples delaying parenthood primarily due to financial pressures, including housing costs and childcare expenses.
Hannah and her husband Ben, who prefer to be identified by their first names, exemplify this trend. They postponed starting a family to prioritise buying a home in an economic climate marked by soaring property prices. “We had always been advised by family and friends to wait to have children because of how difficult it was to get finance,” Hannah shared. Their decision was influenced by the understanding that having dependents affects borrowing capacity, which could limit their ability to secure a mortgage.
In 2021, the couple purchased 50 acres of land in the Lockyer Valley, opting to construct their home rather than buy an existing property. They secured an $800,000 loan but faced complications, including rising interest rates during the COVID-19 pandemic, which extended their building timeline to nearly three years. “We just took the hit, didn’t go anywhere, didn’t do anything. We worked very hard at getting our deposit together,” Hannah explained.
Their experience reflects a broader national shift, as highlighted in the latest government Population Statement by the Centre for Population. Economic factors, including childcare costs and career demands, are causing many Australians to reconsider their family planning. The cost of raising a first child in Australia is estimated at around $17,000 per year, with each additional child costing about $13,000 annually. For an average couple earning approximately $130,000 after tax, this translates to nearly $300,000 for the first child over 18 years and $230,000 for each subsequent child.
The societal expectation of early parenthood is shifting. Many Australians now have their first child in their early thirties rather than their mid-twenties. Hannah, who just turned 30, noted that she and Ben grew up in family-oriented communities where having children at a younger age was the norm. “I didn’t really have anyone in the family who waited until 30; they all had them by 25,” she said.
Despite the advancements in fertility treatments, experts like fertility specialist Charley Zheng from Adora Fertility in New South Wales caution that assisted reproductive technologies cannot fully counteract age-related fertility declines. “IVF cannot fully counteract age-related fertility decline,” Zheng stated, highlighting that the quality and quantity of eggs diminish with age.
Data indicates a notable decrease in the number of women having two or more children, dropping from 80.6% for those born in 1945 to 69.7% for women born in 1975. Additionally, the percentage of women having three or more children has decreased from 44.9% to 27.8% within the same timeframe.
After completing their home in June 2023, Hannah and Ben began trying for a baby, with Hannah successfully conceiving in September 2023. Their daughter, Alanna, now enjoys a childhood surrounded by nature on their property, which includes livestock and pets.
While Hannah acknowledges the societal pressures to start families early, she emphasises the importance of financial stability. “We’re planning for a sibling, but it’s all about timing and finances. We want to make sure we can give our children stability before bringing another into the family,” she stated.
In a bid to alleviate some financial burdens, the Australian federal government plans to implement a new childcare policy. Starting January 5, 2024, the “three-day guarantee” will provide families eligible for the Child Care Subsidy (CCS) with at least 72 hours of subsidised childcare per fortnight, irrespective of work commitments. This initiative aims to benefit around 66,700 families in its first full year, with typical households earning between $50,000 and $100,000 expected to save approximately $1,460 annually on childcare costs.
Despite these measures, Hannah remains aware of the unpredictability of family life. After undergoing an emergency C-section, she and Ben faced additional costs related to training a young horse they had bred. “No matter how much you prepared for life to change around having a family, there is so much you just can’t predict or prepare yourself for,” she noted.
Looking ahead, Hannah hopes to support her children in achieving financial stability earlier in life, enabling them to consider parenthood at a younger age than she and Ben did.
