Additional ECEC spending in 2025/26 Budget modest as Chancellor champions 3 day guarantee

Federal Treasurer Jim Chalmers has handed down the 2025/26 Federal Budget in which the early childhood education and care (ECEC) sector saw modest new spending commitments, although the three day guarantee was championed in his Budget Speech. 

“We believe every child has the right to an early education, to ensure they don’t start school behind,” Mr Chalmers said. 

“Cheaper childcare is also a cost‑of‑living relief with an economic dividend. A key part of our plan to rebuild living standards is to help people work more and earn more if they want to. That means breaking down barriers to workforce participation.”

“From January 2026, we are replacing the Child Care Subsidy activity test with a new Three Day Guarantee. This will make sure families are entitled to at least 3 days a week of subsidised early childhood education and care.”

The 3 Day Guarantee, a policy that was first raised by Prime Minister Anthony Albanese as an election pledge to be implemented should he win the upcoming election, recently passed through parliament after a change of tack on the timing of implementation by the Australian Labor Party. 

Outside of the commentary on the 3 Day Guarantee additional funding measures for the ECEC sector were relatively modest this year in absolute terms but also compared to last year which saw very material allocations to a range of integrity related measures including provider audits, early years strategy funding and inclusion and support funding. 

The key ECEC relevant highlights from the 2025/26 Federal Budget are as follows:

Accessibility related measures:

1. $4.5 million over four years from 2025–26 to Services Australia to make system changes to ensure consistency with the passing of recent legislation to implement the Child Care Subsidy 3 Day Guarantee. 

Program related measures:

1. $1.5 million in 2025–26 to extend the Let’s Count program, delivered by The Smith Family, to build the capacity of educators and parents to improve the mathematical capabilities of preschool children and support their successful transition to school

2. $0.7 million in 2025–26 to extend the Little Scientists program, delivered by FROEBEL Australia, to provide professional learning for early childhood educators to improve their confidence and ability to introduce STEM concepts in a fun and engaging way to children

Workforce qualification and training related measures:

1. $77.8 million over four years from 2025–26 to extend the current interim Australian Apprenticeship Incentive System program settings for a further six months from 1 July 2025 to 31 December 2025

Visit the Budget 2025/26 website to review documents and to read the Treasurer’s address to Parliament click here.