LNP’S CHILDCARE PLAN: SUPPORT FOR CHILDCARE FUND WELCOME, REINSTATING ACTIVITY TEST WILL SET FAMILIES BACK

The Liberal-National Coalition's plan to reinstate the punitive childcare subsidy Activity Test ^[1] will set Australian families back by restricting over 126,000 children, mostly from vulnerable backgrounds, from accessing early learning ^[2].

It will also prevent over 40,000 primary carers, who are predominantly women, from re-entering the workforce should they choose to ^[2].

Maddy Butler, Campaign Director of The Parenthood, said that while the Opposition's support for the Government's proposed Building Early Education Fund (BEEF) was a welcome announcement, their plans to reinstate the Activity Test would restrict childcare access for families who need it the most.

The Building Early Education Fund would invest $1 billion into building or expanding early learning services in areas of need, mostly in rural and regional communities ^[3].

“The Opposition’s childcare plan is one step forward, one step back,” Ms Butler said.

“Their support for the BEEF and their proposed Regional Australia Future Fund will help ensure that the dire shortage of early learning services in regional and rural communities is addressed.

“A proposed $100m grant program for ‘flexible and innovative’ early learning models will also support rural and remote communities where a one-size-fits-all approach is not appropriate.

“However, their plan to reinstate the punitive Activity Test will almost certainly make it much more difficult for marginalised families, including those from the regions, to access childcare.

“The Activity Test is an obsolete policy that has long prevented tens of thousands of children, especially those from vulnerable backgrounds, from accessing early learning.

“Its abolition has been supported by every corner of society, from business groups to unions to health advocates and beyond,” Ms Butler said.

The Activity Test determines how many hours of subsidised childcare a family can access, based on how much they work.

In effect, it has created a system where families need to already be working to access affordable childcare, ignoring the reality that many families first need affordable childcare to be able to re-enter work.

Last year, the Labor Government passed laws to abolish the Activity Test, guaranteeing families three days of subsidised early learning per week, regardless of their working conditions. The measures were not supported by the Opposition.

“The Productivity Commission ^[4], the Australian Competition and Consumer Commission ^[5], and the Women’s Economic Equality Taskforce ^[6] have all called for the Activity Test to be scrapped,” Ms Butler.

“The Activity Test is a hugely unpopular policy in Australia. Reinstating it will set Australian children and families back.

“It will restrict early learning access for some of Australia’s most vulnerable children, and it will prevent tens of thousands of carers, particularly mothers, from re-entering the workforce.

“We implore the Liberal-National Coalition to reconsider their position and support the abolition of this punitive, obsolete measure that has held Australian families back for far too long,” Ms Butler said.

[1] The Australian - Coalition plans to reinstate childcare activity test

[2] Impact Economics and Policy – Childcare subsidy activity test

[3] Australian Government – Building Early Education Fund

[4] Productivity Commission – Childcare inquiry

[5] Australian Competition and Consumer Commission – Childcare review

[6] Women’s Economic Equality Taskforce – Final Report