Labor Pledges Three Days of Subsidised Childcare, Scrapping Activity Test

The proposed policy aims to expand access to early education for families earning up to $530,000, starting in 2026 if re-elected.

Prime Minister Anthony Albanese announced a plan to provide three days of subsidised childcare per week for families earning less than $530,000 annually.
The policy would eliminate the activity test, which ties childcare subsidies to parents' work or study hours, a move recommended by the Productivity Commission.
The government estimates the policy will cost $427 million over five years and benefit approximately 66,000 families, particularly those from disadvantaged backgrounds.
Advocacy groups support the change, highlighting that it could help address developmental vulnerabilities in children and improve workforce participation, especially among women.
If Labor is re-elected, the policy is set to take effect on January 1, 2026, as part of the government's broader goal of universal early education access.