Since 2018, the Child Care SubsidyThe main Commonwealth payment that cuts the fee families pay for approved child care on this page. activity testThe old rule that linked subsidised child care hours to how much a parent worked, studied or volunteered. had tied subsidised care hours to parents' work, study or volunteering, leaving some eligible families with only 0 or 36 hours a fortnight and, as speakers in the 2025 debate argued, shutting many children out of early learning. The Albanese government responded by introducing the Three Day GuaranteeThe new rule that gives eligible families at least 72 subsidised hours each fortnight without needing to meet the old activity test. Bill in February 2025 as a step towards a more universal system, and after Parliament passed it and Royal AssentThe final approval step that turns a passed bill into an Act of Parliament. was granted, the law set a new minimum of 72 subsidised hours a fortnight, with 100 hours for families caring for an Aboriginal or Torres Strait Islander child.
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2018
Child Care SubsidyThe main Commonwealth payment that cuts the fee families pay for approved child care on this page. activity testThe old rule that linked subsidised child care hours to how much a parent worked, studied or volunteered. links care hours to recognised activity
Speakers in the 2025 debate said the Morrison government introduced the activity testThe old rule that linked subsidised child care hours to how much a parent worked, studied or volunteered. in 2018, requiring parents to work, study or volunteer to qualify for subsidised care hours.
Hansard ↗
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05 Feb 2025
Government introduces the Three Day GuaranteeThe new rule that gives eligible families at least 72 subsidised hours each fortnight without needing to meet the old activity test. Bill
The minister introduced the bill as a step towards a universal early learning system that would be simpler, more affordable and more accessible for families.
Hansard ↗
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12 Feb 2025
Parliament hears the activity testThe old rule that linked subsidised child care hours to how much a parent worked, studied or volunteered. was locking children out of early learning
During the House debate, MPs argued the test had denied around 125,000 children access to early childhood education and had especially hurt low-income families.
Hansard ↗
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13 Feb 2025
Parliament passes the bill
Both houses passed the bill in the same form, clearing the way to replace the activity testThe old rule that linked subsidised child care hours to how much a parent worked, studied or volunteered. with a new subsidy minimum.
Parliamentary timeline ↗
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20 Feb 2025
Royal AssentThe final approval step that turns a passed bill into an Act of Parliament. turns the bill into law
Royal AssentThe final approval step that turns a passed bill into an Act of Parliament. completed the legislation so the new Child Care SubsidyThe main Commonwealth payment that cuts the fee families pay for approved child care on this page. settings could commence from the first subsidy fortnight after the law started.
Parliamentary timeline ↗