Prime Minister Anthony Albanese has announced that a re-elected Labor government will guarantee every family earning up to $530,000 has access to three days of subsidised childcare, without having to take an activity test.
The announcement follows the recent recommendations from the Productivity Commission inquiry into early childhood education and care that stated the activity test should be scrapped. The new proposal will still see any families accessing more than three days of subsidised care required to undertake the activity test requirements.
The plan is projected to cost $427 million over five years and would start in January 2026.
Currently, the activity test determines the maximum number of hours of subsidised care families can access per fortnight. Activities include studying, volunteering, looking for work and being in paid work already. Low-income earners and some others have exemptions and the test means that, the more hours of activity, the more hours of subsidised care is accessible.
Albanese says the activity test puts “extra weight on the shoulders of parents who are already doing the hard yards of looking for work while locking their children out of early education”.
“Denying them those learning skills and social skills that get you ready for school. Our Three Day Guarantee will ensure every family can afford three days of high-quality early education.”
The proposal is part of Labor’s plan to “build a universal childcare system” that is “simple, affordable and accessible, for every family”.
The Prime Minister says next week’s budget update will show Commonwealth funding for childcare subsidies increasing by $3.1 billion across the next four years, to support an additional 200,000 children.
But Albanese has made it clear that the election promise will not enforce mandatory attendance.
“The choice will be up to parents, as always, as it should be. But we want families to have a real choice. We want to make sure that your decision isn’t dictated by where you live, or what you do for a living.”
