Cheaper child care to ease pressures on working parents
Hundreds of thousands of children will be guaranteed subsidized early childhood education as “Article 22”, which prevents parents from accessing aid, is repealed.
The three-day guarantee, first announced by Prime Minister Anthony Albanese in late 2024, will replace the previous government’s activity test, which provided subsidies to families earning up to $530,000.
Once the change comes into force at the beginning of the new year, parents will be guaranteed at least three days a week of supported childcare, regardless of how much they work or study.
Parenting campaign director Maddy Butler said old rules banned many families from accessing care and up to 126,000 children would benefit from the change.
“It was essentially a catch-22,” he said.
“Many parents needed care to access paid work, but without care they could not access paid work.
“This is a really important step in ensuring that families from disadvantaged backgrounds can access early education and care.”
Ms Butler said child care should be free for all low-income families, while there should be a flat fee model of $10 per day for all other families.
Finance Minister Jim Chalmers said the change was a move towards a more universal system.
“For too long, activity testing has deprived Australian children of early education because of the choices their parents might make about work or education,” he said.
“The three-day guarantee is about understanding that the work that is done here is not babysitting, it is not babysitting, it is a really important part of the education system.”
Goodstart Early Learning deputy chief executive Jeff Harvie said a “serious barrier” to early learning had been removed.
“Children’s access to learning and better life outcomes should not be limited by their parents’ circumstances and work choices,” he said.
A. Productivity Commission report In September 2024, it was proposed that activity testing be scrapped as it harms families who need it most, without leading to a “significant” increase in workforce participation.
The activity test required each parent to work, study, or look for work for at least 16 hours every two weeks to access 72 hours of subsidized care; this amount is now secured by a three-day guarantee.
The government is investing $430 million over four years to implement the policy.
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