An aging population resulting from low fertility rates can strain pensions, healthcare, and social services, potentially hindering economic growth unless offset by productivity gains.

Governments have attempted various policies to encourage higher birth rates, such as paid parental leave and childcare subsidies, but these measures have had limited success.

Globally, fertility rates have also declined from 2.7 babies per woman in 2000 to 2.4 in 2023, with a notable rise in births in sub-Saharan Africa projected by 2100.

Australia's fertility rate has fallen to a record low of 1.5 babies per woman, significantly below the replacement rate of 2.1 needed to sustain the population.

The rising average age for first-time mothers, now over 30 in Australia, contributes to declining birth rates as women delay childbirth.

Many parents are limiting their family size due to financial constraints rather than personal preference.

A recent survey found that Australian parents spend an average of $1,073 monthly on child-related costs, nearly doubling since 2018.

Childcare costs average $165 per day, significantly impacting family budgets alongside high mortgage payments and rising living costs.

Demographer Liz Allen noted that factors like housing affordability and economic insecurity are contributing to declining birth rates.

This decline raises concerns about maintaining the workforce, sustaining economic growth, and funding essential services.

The trend is shifting towards one-child families, with the percentage of women aged 40-44 having only one child increasing from 8% in 1981 to 16% in 2021.

High housing costs and the general expense of raising children are major factors discouraging young people from having larger families.