Costs of raising children

The child support formula recognises that the cost of raising children is different in households with different income levels, numbers of children, and children of different ages.

In 2005, an independent Child Support Taskforce and Reference Group reviewed research into the costs of children in Australia and recommended a new way of calculating child support payments based on the findings.

Taskforce and Reference Group members had expertise in a variety of areas, including social and economic policy, family law, post-separation parenting and relationships. Some members also represented child support customers.

The Taskforce conducted new Australian research, and reviewed Australian and overseas research into the costs of raising children, and considered factors such as households with different income levels, different numbers of children and children of different ages and reached the best and most up-to-date estimates for the costs of children.

Under the formula, the costs of raising children are calculated according to the combined income of both parents after the self-support amount is deducted. The costs are divided between the parents according to their share of the combined income.

Given that parents receive a contribution towards the costs of their children through Family Tax Benefit (FTB), child support payments are based on what parents contribute out of their own earnings after taking into account FTB payments. The costs of children, determined by the independent research, represent ‘net’ costs after FTB is taken into account.

Go to the Costs of children tables for more information.

Note: The costs of children have been worked out according to independent research, not the actual costs you incur in looking after your children.

Example: Ellie and Joseph