$1 BILLION BIPARTISAN CHILDCARE WIN FOR FAMILIES, BUT “ACTIVITY TEST” MUST NOT BE BROUGHT BACK FROM THE DEAD
23 April 2025 – The Opposition’s intention to follow through with the Government’s $1 billion investment in childcare, as reported today in The Australian, will deliver cost-of-living relief for families.
But the Opposition’s reported plan to reinstate the childcare subsidy “Activity Test” that the Parliament recently abolished would prevent 126,000 children from accessing the life-changing benefits of early childhood education.
Griffin Longley from Minderoo Foundation’s Thrive by Five campaign said affordable and accessible early childhood education was important for all Australian families.
“The Opposition’s childcare plan is one step forward, one step back,” Mr Longley said.
“Investing $1 billion to expand early childhood education and care options for families living in childcare deserts will be a gamechanger for rural families and all those who cannot currently access care.
“We welcome this bipartisan commitment, which will not only mean the best start in life for children but will also deliver cost-of-living relief for parents who are ready to go back to work but struggling to get childcare.
“However, we have serious concerns that bringing the Activity Test back would penalise single parents, First Nations families and others who experience disadvantage.”
The Activity Test – which was abolished by Parliament in February – determined who was eligible for government-subsidised childcare based on hours parents spent working, studying, volunteering or looking for work.
The Productivity Commission, the Australian Competition and Consumer Commission, and the Women’s Economic Equality Taskforce all called for the Activity Test to be abolished.
“The Activity Test was designed as an incentive to get into work but it did the opposite. It made life harder for families already facing significant hurdles and that is why it was abolished,” Mr Longley said.
“Bringing it back from the dead would further disadvantage children who can benefit most from early childhood education, setting them up for success at school and beyond.
“It would also prevent up to 40,000 primary carers – who are predominantly women – from re-entering the workforce.
“It’s time that all children – no matter their postcode or how much their parents work – have the same opportunities to thrive by five.”
