Childcare activity test scrapped as new three-day guarantee starts

A FEDERAL election commitment to guarantee three days of subsidised childcare a week has taken effect, with changes introduced on Monday expanding access to early learning for thousands of families.

The new three-day guarantee replaces the former activity test, which required parents to be working, studying or volunteering to qualify for childcare subsidies.

Under the change, all children are eligible for up to three days of subsidised early education and care each week, regardless of their parents’ employment status.

The policy was announced during the last federal election campaign and is aimed at removing barriers that previously prevented some families from accessing early learning.

The federal government estimates about 100,000 additional families

will now qualify for subsidised childcare. It also says many families had been “locked out” of childcare by the previous system because they could not meet the activity test or afford fees.

Treasurer Jim Chalmers said the policy would deliver immediate support to families.

“The three-day guarantee is an investment in our country’s future and will provide working families with more choice immediately.

“Whether it’s cheaper childcare, cheaper medicines, or increased payments for students and carers, we are delivering more help for those who need it most from the start of 2026.”

Education Minister Jason Clare said access to early education should not depend on parental work arrangements.

“This is a guarantee of three days a week access to subsidised early education and care for the children who need it the most.

“No one blinks when you say every child has a right to go to school and government has a responsibility to help fund it.

“The same has got to be true today for early education and that’s what this is about.”

The three-day guarantee is backed by around $430 million in funding over four years, alongside a separate $1 billion fund to build or expand early learning services in areas identified as having limited access, including regional communities.

The childcare changes coincide with the introduction of other federal measures this month, including lower PBS medicine prices, increased social security payments, and new health and consumer protections.