Activity Test abolished — families finally get fairer access to early learning

From today, tens of thousands of families will find it easier to access early childhood education and care, with the “Activity Test” officially scrapped.

The reform means families will no longer have to prove how many hours they work, study or volunteer in order to receive childcare subsidies — removing a barrier that has long locked out children from low-income, single-parent and insecure-work households.

The Parenthood Campaign Director Maddy Butler said the change marked a turning point for Australian families and children.

“This is a really big deal for parents. From this week, families won’t have to jump through hoops or explain their working hours just to get their child into care,” Ms Butler said.

“It’s a reform that puts children — not bureaucracy — at the centre. Every child deserves the chance to learn, grow and thrive, no matter their parents’ work status.”

The Parenthood has campaigned for years for the removal of the Activity Test, describing it as a policy that punished the families who needed support most.

“Tying a child’s access to early education to their parents’ employment never made sense,” Ms Butler said. 

“It created a cruel Catch-22 where parents couldn’t get care without work, and couldn’t work without care.”

Ms Butler said the timing of the change, in the middle of the January juggle, would bring real relief to families.

“January is when the cracks in the system are most visible. Families are exhausted, care is scarce, and many parents are juggling work and kids without support,” she said.

“Removing the Activity Test won’t fix every problem overnight, but it’s a vital step towards a fairer, more functional system.” While celebrating this historic reform, The Parenthood urges governments to ensure that access in principle becomes access in practice.

“Families need enough places for their children in high-quality inclusive services where they live, a stable workforce and affordable fees,” Ms Butler said.

“Making early learning genuinely universal means every child, in every postcode, has the opportunity to participate in high-quality, affordable early education.”

The removal of the Activity Test follows years of expert recommendations from the Productivity Commission, the ACCC, SNAICC, Thrive By Five, Chief Executive Women, the Business Council of Australia and dozens of advocacy and research organisations.

“With the Activity Test gone, we are a step closer to a truly universal early learning system — one that benefits children, families, communities and the economy,” Ms Butler said.