Heart of Care, Season 2, Episode 1 - "The Weight We Share"

🟠 Series: Heart of Care – Season 2
🎧 Episode 1: The Weight We Share
🎙️ Host: Laura
👤 Guest: Jessica

Description:

What does it really cost to raise children in Australia today?

In this powerful Season 2 opener of Heart of Care, we sit down with Jessica — a working mum of two with a household income many would envy. But once tax and childcare are taken out, she’s left with less than half. Through Jessica’s story, we unpack the hidden pressures working families face — and why the system so often punishes those trying to do the right thing.

From spiralling childcare fees to the welfare cliffs that disincentivise working more, this episode explores how Australia’s tax and subsidy system is pushing families to the brink — and what we can learn from countries doing it better.

If you’ve ever looked at your payslip and wondered “where did it all go?”, this episode is for you.

Raising children is not a private luxury — it’s public work. And if we want a stronger future, we must do better to support those building it.

📢 Listen now and share with someone who needs to hear it.
Because this isn’t just Jessica’s story — it’s a story shared by families across the country.
We can do better.
Presented by AMCU Media.

🎙️ Postroll Script – AMCU Media

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Transcript

SPEAKER_01 0:00

Series title, Heart of Care. Season two, episode one. Episode one, The Weight We Share with Jessica. Hi, I'm Laura, and welcome back to Heart of Care by AMCU Media. We created this space to talk honestly about the everyday struggles Australians face. Not because we failed, but because too often the system has failed us. This special series, The Family Burden, The Weight We Share, is about what it really costs to raise children in Australia today. and why so many working families feel like they're falling behind even when they're doing everything right. If you've ever looked at your payslip and thought, where did it all go? You're not alone. If you've ever wondered why earning more can sometimes leave you worse off, this is the place for you. In today's episode, we meet Jessica, a working mom earning what many would call a good income. And yet, after tax and childcare, she's left with less than half. Her story is one of many. We're going to unpack the numbers, the policies, and most importantly, the impact on real lives. Because at the end of the day, raising kids isn't a private burden. It's public work. And if we want a stronger future, we need to support the families building it. Let's get into it. Every single morning, as the sun barely touches the horizon, millions of Australian parents wake up. They do what they've always been taught is the bedrock of a good life, a responsible life. They get up, they go to work, they contribute, they pay their taxes, and they dedicate their lives to raising the next generation. They are the engine room of our society. But behind the closed doors of homes, in the quiet moments after the kids are asleep, or in the frantic rush of a barely there lunch break, many of these hardworking Australians are quietly asking a profound, unsettling question. Why doesn't it add up anymore? Why, despite all this effort, does it feel like we're constantly falling behind? In this episode, we are going to have a deep, honest look into the spiraling, often invisible cost of parenting in Australia and the systemic failures that are quietly, but devastatingly, leaving our families behind. Segment one, setting the scene. Today, we're peeling back the layers on something that impacts the daily lives of countless Australians, yet it's rarely discussed with the honesty and transparency it deserves, the financial trap that working parents in Australia are increasingly caught in. It's a trap that affects your ability to save, to plan, and to simply breathe. And joining me to share her incredibly common yet deeply personal experience is my good friend, Jessica, a working mom of two, navigating a system that, as she'll tell us, somehow punishes her for trying to do all the right things that society expects. Jess, thank you so much for carving out this time

SPEAKER_00 2:46

to be here. Thanks for having me, Laura. Honestly, when you first brought this topic up, I immediately thought... Yes. This is such an important conversation that so many of my friends are having, but always in hushed tones. It feels good to talk about it openly.

SPEAKER_01 3:02

Absolutely. And that's what we want to do here. Bring these conversations into the light. Segment two, the breakdown, the invisible drain. Jess, let's jump straight into the numbers because they are stark. Your combined household income on paper is quite substantial, around $200,000. For many Australians hearing that, they might think, wow, they're doing really well. They must be comfortable. That's

SPEAKER_00 3:28

exactly what people think. And for a long time, we tried to believe it too. But after tax, and especially after childcare, it's a completely different story. It's like looking at a beautifully wrapped present only to open it and find it's half empty. Let's break it down

SPEAKER_01 3:45

for our audience, step by painful step. You start with that $200,000 gross income as a family. Then you subtract approximately $52,000 in taxes and the Medicare levy. That's already a significant chunk. That leaves you with $148,000. For many, that's still a healthy sum. But then comes the childcare. For two kids five days a week at an average of $160 per child per day, you're looking at a staggering $70,000 a year. And at your combined income level, the government childcare subsidy covers just 25% of that. So you're out of pocket around $50,000. It's a huge, unavoidable bill. And when you subtract that, your final actual take-home income is just $98,000. It's less than half of what we

SPEAKER_00 4:33

started with, Laura. Less than half. And that $98,000 for a family of four? That's before we even think about rent or mortgage payments, groceries, petrol just to get to work, car insurance, health insurance, school fees if we had them. electricity, gas, internet, life. It makes you feel like you're constantly running on a treadmill that's speeding up faster than you can keep pace. And

SPEAKER_01 5:01

the mental load that comes with that financial squeeze must be immense. It absolutely is. You're always calculating, always worrying. There's no buffer. Segment three, the cliff, the disincentive to earn more. And what if you earn more, Jess? Intuitively, people think, just get a raise, work harder. But your situation highlights a perverse incentive.

SPEAKER_00 5:24

It actually gets worse. We did the math for fun. Well, not really fun, but out of necessity. We calculated that if one of us got a $10,000 raise after the higher taxes we'd pay and the further reduction in our child care subsidy, we'd realistically only see about $2,000 extra in our take-home pay. It's devastating. It's what they call the welfare cliff. But it's not just about welfare anymore. It's about any kind of benefit, any subsidy. It penalizes you for trying to progress. It essentially says, why bother?

SPEAKER_01 5:59

And you are absolutely not alone in this, Jess. This is a critical point that so many parents, especially women who often have the lower second income, end up grappling with. They crunch these numbers and realize that their entire second income after tax literally just goes to cover the cost of childcare. The financial incentive to stay in work disappears. So they step out of work. And while that's a personal choice, it's often driven by a system that pushes them out.

SPEAKER_00 6:29

It's heartbreaking, Laura. Truly, I wanna work. I love what I do and I've worked hard for my career. I value my independence and my contribution outside the home. But when my entire paycheck or a huge chunk of it just goes to daycare and tax, I honestly sit there and ask myself, what's the point? Am I just working to pay someone else to raise my kids and the government to take a bigger slice? It feels like a lose-lose situation.

SPEAKER_01 6:57

Let's zoom out even further and look at the bigger picture. Why are Australian families, and particularly working parents, shouldering such an incredible burden? Part of the answer lies in our fundamental tax structure. Australia relies on personal income tax for almost 50% of its total government revenue. That's incredibly high. Compare that to other developed nations. In France, it's around 18%. Germany, 25%. Even Canada, with its robust social services, sits at about 30%. So, why is Australia so different? Why do we lean so heavily on income tax? There are primarily three interconnected reasons. Firstly, our unique federal system means that states don't collect income tax. It's almost entirely a federal responsibility, leaving less room for states to fund their own services without federal grants or other revenue streams. Secondly, our goods and services tax, the GST, is stuck at just 10%. Many other comparable countries have much higher consumption taxes, which broadens the tax base. And thirdly, and this is a critical point, we barely tax wealth. Unlike many other nations, Australia has no inheritance tax. We have no broad-based wealth tax. And capital gains, profits from investments, typically get a significant discount, meaning they're taxed at half the rate of income from hard work. So basically,

SPEAKER_00 8:24

regular wage earners, people like us, working everyday jobs, doing the grind, we're carrying almost the entire load. While others, those who hold significant assets and wealth, Legally pay far, far less in proportion to their actual financial capacity?

SPEAKER_01 8:41

Exactly, Jess. And it's not just about the numbers. It's about what that creates in our society. It's creating a very tangible and growing divide. Workers versus wealth holders. It fuels that feeling you described. That unfairness. That sense of running on a treadmill. Segment five, solutions and solidarity. Learning from others.

SPEAKER_00 9:03

This all sounds incredibly bleak, Laura. Are other countries doing this better? Is there a model we can look to?

SPEAKER_01 9:09

Absolutely, Jess. There are many examples of nations that have designed their tax and social systems to be more supportive of families and more balanced in their revenue collection. Take France and Germany, for example. Instead of solely taxing individuals, they often tax households. This means they consider the financial situation of the entire family unit. including dependents, leading to a more equitable distribution of the tax burden for parents. They also design their benefits and subsidies with much more gradual tapering. This means that as you earn more, you don't suddenly lose a huge chunk of your support. There's no sharp cliff. It's designed to always make it financially worthwhile to earn more, encouraging participation in the workforce, and crucially, many of these countries implement fairer, broader wealth taxes, whether it's through inheritance taxes, taxes on significant assets, or more comprehensive capital gains taxes. This ensures that the burden of funding society's essential services isn't disproportionately placed on those who are working weekly. It

SPEAKER_00 10:13

sounds so sensible. So why can't we do that here? What's stopping us from making these changes?

SPEAKER_01 10:19

That's the million-dollar question, Jess. And the hard truth is, often, it's because the system as it currently operates works exceptionally well for those it was originally built to protect, or for those who benefit most from its current structure. Changing it means challenging powerful vested interests and having politically difficult conversations, but that doesn't mean we stay silent. We absolutely cannot afford to stay silent. We need to start by telling the fundamental truth. Raising kids is not just a personal choice or a private luxury, it is demanding, essential economic work. It builds the future workforce, the future taxpayers, the future innovators. And right now, our system fundamentally treats it like a private luxury that working families must somehow pay for themselves. Segment six, the big idea, valuing the future. You know what's truly missing from our Australian tax and social security system? A basic, undeniable truth that should be at its very core. Every single child, simply by existing, has fundamental, essential needs. Food, clothing, shelter, education, care, health, these are not luxuries. They are necessities for human development. But currently, we offer no universal, tax-free offset or allowance that truly acknowledges this. Nothing to help families universally meet those essential needs, regardless of their income level. The support is means-tested, complex, and often creates those cliffs we talked about. What if we fundamentally changed that paradigm? What if, as a society, we collectively decided to acknowledge this fundamental truth? What if we provided a non-income-tested, per-child tax-free allowance, a straightforward, universal payment designed specifically to help families cover these basics? Food, clothing, education, quality care? Because raising the next generation isn't a side job, it's not just a hobby. It's arguably the most vital work happening in our nation. It is fundamental, continuous, often exhausting work. And our system, our entire society, should reflect and support that. Segment seven, closing message. Jessica, thank you so much again for your courage in sharing your story. I know it represents not just you and your family, but literally thousands, hundreds of thousands of families just like yours across the country who are feeling this exact financial squeeze. Thank you, Laura. It

SPEAKER_00 12:45

means so much to be able to speak about this. I just hope more people hear this and realize it's not just them failing to budget or not working hard enough. It's the system, and it needs to change.

SPEAKER_01 12:59

And to everyone listening, this conversation is just the beginning. Your voice matters. Your experience matters. You've been listening to Heart of Care podcast series, a vital production of AMCU Media. If this episode resonated with you, if you recognize these struggles, please do us a huge favor. Share it with someone who needs to hear it. Let's make sure this conversation grows. And in 2026, join us on the Heart of Care podcast as we expand this conversation even further, delving deeper into the solutions and the path forward for a fairer Australia. Because we believe we can do better.