SCRAPPING THE ACTIVITY TEST CRUCIAL FOR EQUITY & COST OF LIVING RELIEF FOR PARENTS, SAY CAMPAIGNERS

The cost-of-living for parents with young children risks continuing to skyrocket into 2025, amid growing reports that the Coalition will cut funding for early childhood education and care at the Federal Election, says The Parenthood.  

The Parenthood urges all parties to commit to scrapping the Activity Test as an essential equity measure and cost-of-living relief for parents at the upcoming Federal Election.  

Thursday 19 December

The cost-of-living for parents with young children risks continuing to skyrocket into 2025, amid growing reports that the Coalition will cut funding for early childhood education and care at the Federal Election, says The Parenthood.  

Last night on 7.30, Shadow Treasurer Angus Taylor made comments that reducing the Child Care Subsidy system, known as the Activity Test, is not something the Coalition believes Australia can afford.  

These comments are based on a short-sighted misunderstanding of the value of early childhood education and care which not only brings huge benefits to children at the most critical stage of development, but supports the workforce participation of parents, boosts productivity and the Australian economy.

 Mr Taylor’s remarks come a week after the Albanese Labor Government announced it will guarantee three days of subsidised early education for the children who need it most through reforms to the Activity Test.  

 CEO of The Parenthood, Georgie Dent said that all parties must commit to scrapping the Activity Test as essential for supporting children and relieving parents' cost-of-living.

“The Activity Test locks out too many children from participating in the quality early education they deserve, and adds to the cost-of-living pressures on parents by making it more difficult to access paid work and afford early childhood education and care,” said Ms Dent.  

“It was designed to incentivise work, but in reality, parents who don’t have a shift or a job cannot afford the out-of-pocket cost for early childhood education and care because they don’t meet the requirements of the test. At the same time, if they don’t have suitable care lined up, they cannot take a shift or find work. 

“It has been proven to particularly disadvantage single mothers and their children, First Nations families and casual and shift workers.  

 “For a single mum who doesn't have regular work, the current system traps them in a catch 22. They can't take a job or a shift until they have secured childcare, but they can't pay for childcare until they have a job." 

 Modelling from Impact Economics and Policy estimated 126,000 more children could attend early education if the Activity Test was removed.  

 “The Coalition has already suggested that parents want affordable, accessible childcare so they can play golf or do pilates. This is unhelpful and fails to match parents’ realities.  

 “We urge the Coalition to heed the advice of the Productivity Commission, the ACCC, the Women’s Economic Empowerment Taskforce, the Economic Inclusion Advisory Committee, Chief Executive Women, the Business Council of Australia as well as countless NGOs, economists and children's experts, and commit to improving access to and affordability of early childhood education and care at the Federal Election.  

 “Access to early childhood education and care is too important an issue to be partisan,” said Ms Dent.