Birthing Classes in Melbourne: Comparing Your Options
The Real Cost of Having a Baby in Australia
Having a baby is life-changing in every way, including financially. While the Australian healthcare system covers a lot through Medicare, there are still plenty of costs that catch new parents off guard. From prenatal care to the first year of your child's life, the expenses add up quickly.
This guide breaks down the real costs of having a baby in Australia so you can plan ahead and avoid financial surprises.
Prenatal Care Costs
Your costs during pregnancy depend heavily on which model of care you choose.
Public Hospital (No Private Health Insurance)
If you choose the public system, most of your prenatal care, birth, and postnatal stay are covered by Medicare at no cost. This includes:
- Midwife and doctor appointments
- Standard blood tests and ultrasounds (when bulk-billed)
- The birth itself, including any interventions or caesarean
- A hospital stay of one to two days for a vaginal birth, or three to five days for a caesarean
Out-of-pocket costs in the public system are usually minimal but can include non-bulk-billed ultrasounds ($150 to $400 per scan), some pathology tests, and parking at the hospital.
Private Obstetrician
Going private gives you continuity of care with a chosen obstetrician, but the costs are significant. Typical out-of-pocket expenses include:
- Obstetrician's fees: $3,000 to $8,000 or more, depending on the obstetrician and your location
- Anaesthetist's fees: $500 to $2,000 (if you have an epidural or caesarean)
- Hospital excess: $250 to $750 (depending on your private health insurance policy)
- Ultrasounds: $150 to $500 per scan, with Medicare rebates covering a portion
Even with top-level private health insurance, many parents pay $3,000 to $6,000 out of pocket for a private birth. It is important to check what your health fund actually covers and what gap payments you will need to pay.
Private Midwifery Care
A private midwife who provides continuity of care through pregnancy, birth, and the postnatal period typically charges between $3,500 and $7,000. Some privately practising midwives are eligible for Medicare rebates, which can reduce the cost. Home birth with a private midwife falls into a similar price range.
Birth Costs
The birth itself is generally covered in the public system. In the private system, the total hospital and specialist fees for a straightforward vaginal birth can range from $5,000 to $15,000, with insurance covering a portion and the remainder coming from your pocket. A caesarean birth in a private hospital can cost $10,000 to $20,000 before insurance.
Additional costs that can arise during birth include:
- Paediatrician attendance at birth: $300 to $800
- NICU stay (if required): Covered in public, potentially gap fees in private
- Extended hospital stay: Costs vary depending on the hospital and your insurance
The First Year: Ongoing Costs
The expenses do not stop once the baby arrives. Here is a realistic look at what the first year costs:
Essential Items
- Car seat: $200 to $800 (legally required before you can leave the hospital)
- Pram: $300 to $2,000+
- Cot and mattress: $200 to $1,000
- Clothing: $300 to $800 for the first year (babies grow fast)
- Nappies: $1,000 to $2,000 per year for disposables, or $500 to $800 upfront for reusable cloth nappies
- Formula: $1,500 to $3,000 per year if not breastfeeding
Professional Support
- Lactation consultant: $100 to $250 per session (some are bulk-billed through hospitals)
- Maternal child health nurse: Free through your local council
- Sleep consultant: $150 to $500 depending on the package
- Postnatal doula: $40 to $70 per hour
Childcare
If you return to work, childcare is often the biggest ongoing expense. Australian childcare costs vary widely by location and type:
- Long day care: $80 to $200 per day
- Family day care: $60 to $130 per day
- Nanny: $25 to $40 per hour
The Child Care Subsidy (CCS) can significantly reduce these costs. Your subsidy rate depends on your family income, activity level, and the type of care used. Apply through myGov before your child starts care.
Government Payments and Support
The Australian government provides several payments to help with the costs of a new baby:
- Paid Parental Leave: Up to 22 weeks at the national minimum wage (as of 2025, increasing to 26 weeks by 2026)
- Dad and Partner Pay: Being rolled into the single Paid Parental Leave scheme
- Family Tax Benefit Part A: Ongoing payment based on family income
- Family Tax Benefit Part B: Additional payment for single-income or low-income families
- Newborn Supplement: A payment for families not receiving Paid Parental Leave
- Child Care Subsidy: Ongoing subsidy for approved childcare
Visit Services Australia (servicesaustralia.gov.au) to check your eligibility and estimate your payments. Planning your birth and finances together is one of the most practical things you can do during pregnancy. You can also explore lifestyle resources in our directory for budgeting and family planning support.
Tips for Managing the Costs
- Buy second-hand where safe to do so (prams, clothing, toys). Car seats should be bought new or from a trusted source with known history.
- Accept hand-me-downs gratefully. Babies outgrow things quickly.
- Compare health insurance policies well before conception if possible. Most policies have a 12-month waiting period for pregnancy-related claims.
- Claim the Medicare Safety Net if your out-of-pocket medical costs exceed the threshold.
- Start a dedicated savings fund as early as possible in pregnancy.
Frequently Asked Questions
How much does it cost to have a baby in a public hospital in Australia?
In the public hospital system, most costs are covered by Medicare. Out-of-pocket expenses are typically limited to non-bulk-billed ultrasounds, some blood tests, and hospital parking. Most families pay between $200 and $1,000 in total out-of-pocket costs for a public hospital birth.
Is private health insurance worth it for having a baby?
It depends on your priorities. Private insurance gives you a choice of obstetrician and usually a private room, but significant out-of-pocket costs remain. The public system in Australia provides high-quality maternity care at little to no cost. Compare the total costs, including premiums, excess, and gap fees, before deciding.
How much does a caesarean cost in Australia?
A caesarean birth in a public hospital is covered by Medicare at no cost. In a private hospital, the total fees (surgeon, anaesthetist, hospital, and paediatrician) can range from $10,000 to $20,000, with private health insurance covering a portion. Out-of-pocket costs typically range from $3,000 to $8,000.
What government payments am I entitled to when I have a baby?
Key payments include Paid Parental Leave (up to 22 weeks, increasing to 26 weeks by 2026), Family Tax Benefit Parts A and B, the Newborn Supplement, and the Child Care Subsidy. Eligibility depends on your income, employment, and circumstances. Check servicesaustralia.gov.au for current rates and eligibility criteria.
How much should I budget for the first year with a baby?
A realistic estimate for the first year, including essential gear, nappies, clothing, and feeding costs, is $5,000 to $15,000, depending on your choices. If you add childcare, the figure can be significantly higher. Government subsidies and second-hand purchases can help reduce these costs substantially.