Activity Test Scrapped!
Laws have been passed today to remove the Child Care Subsidy Activity Test, and bring in a 3 Day Guarantee for early childhood education and care.
BY HEJIRA CONVERY, KINDICARE
The Activity Test has been a challenging part of the Child Care Subsidy (CCS) for many families, and whether you’ve been able to easily satisfy the test or have struggled, it’s great to see laws being passed that will scrap the CCS Activity Test.
From January next year, families will be able to access at least three days of subsidised early childhood education and care per week, no matter how much work or study parents do.
Abolishing the Activity Test was recommended by the Productivity Commission in its final childcare inquiry report released last year, and replacing the Activity Test with a 3 Day Guarantee takes us one step closer to a universal early childhood education and care system.
Although the Dutton-led Coalition voted against the 3 Day Guarantee change, plenty of people will benefit when the new legislation takes effect from January 2026.
The Labor government says, ‘Families earning between $50,000 to $100,000, will be better off under the 3 Day Guarantee and are expected to save on average $1,460 per year.’
Albanese’s team asserts that, ‘The 3 Day Guarantee will provide cost-of-living relief to families and help ensure that children can access the benefits of high-quality early education and care.’
Despite getting this CCS change passed on the final sitting day of the fortnight, the Labor government’s work is far from done.
They have an election looming, if re-elected, the Labor government is promising to create a $1 billion Building Early Education Fund which will see 160 early learning centres being built or expanded in the areas that need them most.
They see this as big money very well spent, and Minister for Early Childhood Education, Dr Anne Aly says, ‘Investing in the early years is an investment in Australia's future – there is no better investment than giving our littlest Australians the best possible start in life.’
We can definitely agree with that.
Guaranteed access to affordable, inclusive and high-quality early childhood education and care is positive for children, families and our society, and we look forward to seeing how the path to universal ECEC plays out.
