Prime Minister Anthony Albanese has vowed to expand access to childcare and early childhood education if the Labor Party wins the upcoming federal election.
Albanese emphasized that every child deserves the opportunity for early education, announcing that a re-elected Labor government would take significant steps toward creating a universal system accessible to all Australian families.
A key part of the proposal is the introduction of the “3-Day Guarantee,” which would ensure every child is eligible for at least three days of subsidized early childhood education per week. The guarantee, set to replace the current Activity Test in January 2026, would make early education available to all children regardless of their parents’ employment or financial situation.
“Every child should have the right to quality, affordable early education,” Albanese said. “That’s why we want to build a universal childcare system that is simple, affordable, and accessible for every family.”
Currently, the Activity Test requires parents to meet certain work requirements to qualify for subsidized childcare, which often leaves children without access to early education if their parents are not in paid work. Without government subsidies, childcare costs can reach as high as $150 per day per child, making it unaffordable for many families.
By removing the Activity Test, an estimated 126,000 more children would be able to access early learning. This change would particularly benefit single-parent families, low-income families, and First Nations families.
In addition to the 3-Day Guarantee, the government plans to establish a $1 billion Building Early Education Fund, starting in July 2025. The fund will support the construction and expansion of childcare centres, particularly in under-served areas such as outer suburbs and regional Australia. The fund will provide grants to childcare providers and explore opportunities for the Commonwealth to invest in services.
Early Childhood Education Minister Anne Aly said the initiative aims to ensure that children, regardless of their background, can benefit from early education.
“Our Building Early Education Fund will help ensure that all Australian children, no matter where they live, have access to the transformative benefits of early education,” Minister Aly said. “Accessible and affordable early learning is key to supporting families, particularly women, in returning to work or increasing their working hours.”
The government will also introduce an Early Education Service Delivery Price to assess the cost of delivering services across the country, a step toward future reforms in the sector.
The Parenthood, an advocacy group, praised the announcement, calling it a major step toward achieving universal early childhood education. CEO Georgie Dent welcomed the decision to eliminate the Activity Test, which she said has disproportionately affected low-income and First Nations families.
“The Activity Test has been a major barrier to universal access to early childhood education, particularly for disadvantaged communities,” Dent said. “We would never block a child from attending primary school based on their parents’ work hours, and we shouldn’t accept that for early education either.”
The Parenthood has urged the Opposition to support Labor’s commitment to universal childcare.
SNAICC, the national body representing Aboriginal and Torres Strait Islander children, also welcomed the policy, calling it a potential game-changer for Indigenous children. CEO Catherine Liddle said the initiative would better prepare Indigenous children for school and provide more support for families through Aboriginal community-controlled centres.
“We’ve long advocated for the removal of the Activity Test, and we are thrilled that our voices are being heard,” Liddle said. “This policy will help ensure more children are developmentally ready for school and set up for a successful future.”
Albanese’s proposal marks a major shift towards creating a universal, equitable childcare system in Australia, with a focus on accessibility and affordability for all families.
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