Article
The Hidden Costs Of Caring
When we talk about unpaid care, it’s easy to focus on its value. In Australia, Deloitte has valued the contribution of unpaid care at $77.9 billion annually.
Other estimates, including from Treasury, place the figure much higher - closer to $139 billion a year when the full replacement costs are considered. It’s a staggering contribution, but it comes with costs that are harder to see.
For Carers themselves, the hidden costs are deeply personal. Many reduce hours or leave the workforce entirely, leading to lost income, stalled careers, and limited superannuation. Over time, this financial strain compounds - making carers more vulnerable to poverty later in life. On top of this, the emotional toll is immense: stress, fatigue, anxiety, and a higher risk of depression are consistently reported among carers.
Families feel these costs too. The loss of income or career progression for one member affects household stability, choices about housing, education, and savings, and can create pressure between siblings or partners about how care is shared. Children of carers may also take on responsibilities earlier than their peers, shaping their own life opportunities in unseen ways.
Workplaces are impacted when employees reduce hours, exit roles, or turn down promotions because of care demands. Productivity suffers, institutional knowledge is lost, and recruitment and training costs rise. Retention becomes harder - and in a labour market already under pressure, the hidden cost of replacing skilled employees can be significant.
And finally, the economy carries the broader weight. While unpaid care saves governments billions in formal service costs, the flip side is reduced workforce participation, lower tax contributions, and higher reliance on welfare. As Australia’s population ages, the gap between lifespan and healthspan grows - and with it, the carespan — these hidden costs are only set to climb.
Caring sustains us all. But until these hidden costs are recognised and addressed - not just absorbed by carers - they will continue to undermine families, workplaces, and the economy itself.
