Cue the applause and maybe even a gold star sticker - because you did it. You survived year one of parenthood with the baby still alive. You’re officially the responsible adult now.

But just when you thought you could maybe catch your breath… boom, it’s time for the next level: going back to work. As a parent. Gulp.‍

Previously, we talked about financial prep pre-baby, and the first rollercoaster year. Now? Let’s talk about what it means to re-enter the workforce while raising a tiny human.

Return to work part time or full time? 🤔

Returning to work after some time off can be somewhat of a shock to your system (duh - you’ve been talking in full baby mode for the past year). 

But the question of returning to work part time vs full time isn’t simply a financial one. Here are a few points to consider before diving back into 9-5 (or 10-2):

• Time with your child - Do you want more baby time, or are you ready to swap nappies for team meetings?
• Personal wellbeing - Are you an ‘all in’ person or do you need a gradual return?
• Partner’s schedule - Is there flexibility in your partner’s schedule that can help you shuffle around some responsibilities? 
• Career progression - Are you itching to climb the career ladder or happy to enjoy the journey for now?
• Employer flexibility - Does your workplace offer hybrid or flexible work arrangements that could make full time hours more manageable? 

From a financial perspective, this decision is often largely dependent on the cost of childcare in your city and whether you have family members who can help babysit. 

Crunching the childcare numbers without crying 🍼

Depending on where you live in Australia, daycare can cost anywhere from $110 to $185 a day. That’s the cost of a concert ticket or luxury massage, except your child gets to fingerpaint while you’re working. 

The good news? The Australian government offers Child Care Subsidy (CCS) to make life as a working parent feel more possible. Families earning under $85,279 per annum can get up to 90% subsidised childcare, and families earning up to $535,279 per annum still get a partial subsidy.

But the CCS has specific eligibility criteria, including minimum “activity level” hours. And while the government typically requires parents to be working, studying or volunteering at least 16 hours a fortnight to be eligible for the subsidy, you can be eligible for more CCS if you work longer hours.

Which brings in the balancing act where you determine how much extra $$$ you might earn by returning to work partially or fully - depending on the cost of childcare, your eligible CCS, and family assistance. 

The super important conversation 😬

Let’s talk superannuation - the conversation nobody asked for, but everyone needs.

In Australia, women typically end up with less super than men, and taking time off to raise kids is a major reason why. If one partner steps back from work, their retirement savings can take a hit that compounds over time. 

Not to mention, the effect that time away from the work force has on your career (and salary) progression. 

But raising a family isn’t a solo mission. 

In Australia, the main income earning partner can choose to split up to 85% of their superannuation contributions over to their spouse within a financial year. 

This not only helps to balance out the superannuation gap for the primary care taker, it also provides a potential tax benefit to the higher earning partner - win win. 

Regardless of how you choose to tackle going back to the workplace (or not), talk openly with your partner, plan together, and support each other through it! 

When it gets rough, don’t forget - you’ve already done one of the hardest things on the planet: kept a tiny human thriving for a year.

You’ve got this.