Australia’s Fertility Crisis: Why Money Isn’t Fixing It

ACT is home to the country’s largest public sector but has the lowest birth rate in the country.

A young family at their home in the Eastern Suburbs in Sydney, Australia, on April 20, 2020. Lisa Maree Williams/Getty Images

Australia’s birth rate continues its descent, and despite billions of dollars of taxpayer-backed incentives like childcare subsidies, paid parental leave, and workplace flexibility, there appears to be no sign of stopping.

The Australian Labor government estimates it will invest $4.8 billion (US$3.39 billion) in paid parental leave in 2026 (pdf). As of Jan. 5, 2026, more Australian parents can also access three days of guaranteed childcare, slated to cost $430 million over four years.