Sector responds to Government announcement of three days of ECEC 

A number of organisations, early childhood education and care (ECEC) providers and sector advocates have responded to the recent announcement that, from January 2026, the Activity Test will be removed, and families will be able to access at least 72 hours of subsidised care each fortnight (100 hours for First Nations children.)  

The Bill follows recommendations from the Productivity Commission and the ACCC which found that the current activity testing for the Child Care Subsidy was adversely impacting on low income families accessing early learning.

The Australian Education Union (AEU), the Australian Childcare Alliance (ACA), the Early Learning and Care Council of Australia (ELACCA), the Australian Childcare Alliance Queensland (ACA Qld), Early Childhood Australia (ECA), and Goodstart Early Learning all submitted statements in response to the announcement to The Sector. 

These statements have been condensed in the piece below, and organised into key themes. 

The best possible news

Goodstart Early Learning CEO Dr Ros Baxter captured the overall sentiment of respondents, describing the passing of the legislation as being ‘the best possible news’ for Australia’s children and their families.

“We estimate that around 40,000 children will be able to access early learning as a result of this bill and early learning will become more affordable for another 66,700 children from mostly low income families,” she said.

“This is a great day and we thank the Parliament for giving priority to the needs of Australia’s children.” 

The AEU agreed, saying the passing of the Early Childhood Education and Care (Three Day Guarantee) Bill 2025 was “a victory for families and children, as well as the early childhood teachers and educators that make it possible.”

An acknowledgement of the value of ECEC

For AEU Federal President Correna Haythorpe the Bill represents an important acknowledgment of the critical role of early childhood teachers and educators and the place they have in the lives of children. 

“Early childhood teachers and educators are central to the success of this policy, and the AEU is committed to continuing its advocacy to ensure that early childhood education and care is properly funded and that the professionals who work in this sector are fairly compensated for their essential work,” she added. 

Support for vulnerable children

ACA President Paul Mondo said the change in legislation is “a critical step in improving access to vulnerable children needing access to ECEC,” and one that represents a monumental shift in terms of their potential outcomes. 

“ACA believes this is vital for Australian families and we’re looking forward to implementing the change,” Mr Mondo said.

ELACCA agreed, with CEO Elizabeth Death saying her organisation is “absolutely delighted to see this legislation pass through Parliament.”

“We firmly believe that every child should have access to high-quality early learning and care, regardless of their family circumstances,” Ms Death said.

“ELACCA congratulates members of the Australian Parliament for their consideration and support of this important legislation – it will make a significant difference to increase the accessibility and affordability of early learning and care.”

Less confusion for families 

ACA Qld welcomed the decision to remove the complex Activity Test, saying that doing so marks an important step toward greater accessibility and affordability to early childhood education and care for families.

“We thank the critical role of the ACA National body in consistently advocating for the removal of barriers to childcare access. Our national team has been instrumental in their continued call to abolish the Activity Test,” ACA Qld President Majella Fitzsimmons said. 

“The Activity Test has long been a source of confusion for parents and is a constant discussion in Queensland. Many families underestimate their eligible CCS hours, and as a result, they often find themselves unexpectedly incurring fees, which can discourage them from returning to work or enrolling their child into early education.” 

ECA CEO Samantha Page agreed saying, “For families with insecure and inconsistent employment, the Activity Test has been a significant impediment to changing family circumstances through employment, study and training, and to enable every child to thrive and learn.”

ECA has long advocated for an early childhood education and care ‘entitlement’ for every child in Australia, highlighting the importance of ECEC in supporting children’s learning, development and wellbeing, and its place in the everyday lives of families, enabling access to employment, training and study.