Anthony Albanese has promised more childcare centres and greater access to early childhood education should Labor win next year’s federal election.
Insisting every child has a right to early education and care, the Prime Minister said a re-elected Labor government will take the next steps in building a universal system for everyone across the country.
A key component of the policy is the commitment to deliver what he is calling the 3-Day Guarantee, which will provide at least three days a week of subsidised early childhood education for every child who needs it. The guarantee will replace the current Activity Test from January 2026 and provide guaranteed eligibility.
“Every child should have the right to quality, affordable early education,” Mr Albanese said.
“That’s why we want to build a universal childcare system that is simple, affordable and accessible for every family.
“We think children should have guaranteed access to at least three days of high-quality early education and care because early education is about changing lives.”
The Activity Test is a work requirement that parents must meet to access subsidised childcare. In effect, this currently denies children early education based on their parents’ financial or employment situation.
Without subsidies, childcare fees can be up to $150 per day per child, putting childcare out of reach for families not currently in the workforce.
The test was originally conceived as an incentive to get parents into work.
Scrapping the Activity Test will allow 126,000 more children to access early learning, which will greatly benefit single-parent families, low-income families and First Nations families.
A $1 billion Building Early Education Fund will roll out from July 2025, beginning with the construction and expansion of more centres in need areas, including the outer suburbs and regional Australia.
The fund will deliver grants to providers. The government will also explore options for the Commonwealth to invest in owning and leasing out services.
It will include a focus on co-locating services on school sites wherever possible and on supporting the growth of high-quality not-for-profit providers.
Early Childhood Education Minister Anne Aly said the initiative is a key part of ensuring more Australian families can access quality early education and care.
“Our Building Early Education Fund will help ensure that children, no matter their background or where they live, are able to access the transformational benefits of early education and care,” the Minister said.
“Accessible and affordable early learning is critical for supporting more people, especially women, to have a choice when it comes to undertaking study, re-entering the workforce or increasing their hours of work.
“We’re laying the foundation for a truly universal early childhood education system through improving affordability, boosting supply, increasing accessibility and securing the vital workforce families rely on.”
As part of this package, the government will also develop an Early Education Service Delivery Price to better understand the cost of delivering services around the country and underpin future reform.
Advocacy group The Parenthood has welcomed the announcement, describing it as a “seismic victory” on the path towards universal early childhood education and care in Australia.
Chief executive officer Georgie Dent said it is a profound win for children, equity and the nation.
“The Activity Test is one of the most significant obstacles to universal access to early childhood education and care in the country and has been particularly detrimental to First Nations families, as well as children from low-income and disadvantaged households,” Ms Dent said.
“We wouldn’t dream of blocking a child from participating in primary school if their parents didn’t work certain hours and we shouldn’t accept that in the early years either.”
The Parenthood is now calling on the Opposition to match Labor’s commitment.
SNAICC, the national voice representing the interests of Aboriginal and Torres Strait Islander children and families, said the initiative will see thousands of Indigenous children gain access to early education and care.
“This can be a game-changer for our babies,” SNAICC’s chief executive officer Catherine Liddle said.
“It will mean more children developmentally ready for school, setting them up for a thriving future.
“Families will be better supported by having access to wrap-around services in Aboriginal community-controlled centres.
“SNAICC has strongly advocated for the removal of the Activity Test for many years. I am very pleased the evidence and strong voices of our sector are being heard.”