Activity Test set to be scrapped for Childcare Subsidies

Activity tests are set to be scrapped for childcare subsidies.

All parents set to qualify for minimum 3 days subsidised childcare, after a bill proposing this measure was passed in Parliament.

Previously, families that applied to claim the childcare subsidy (CCS) were required to pass the income test & the activity test (or be exempt).

Current requirements

The current activity test requires each parent to work, study or look for work for at least 16 hrs each fortnight before they can access 72 hours of subsidised care.

Activity level each fortnight

The current subsidised care each fortnight are:

Less than 8 hrs of Activity = 0 hrs if income above $83,280, 24 hrs if income below $83,280, and 36 hrs for Aboriginal or Torres Strait Islander children
Activity levels 8 hrs to 16 hrs = 36 hrs
Activity levels 16 to 48 hrs = 72 hrs
Activity levels > 48 hrs = 100 hrs

Families who do not meet the activity test and are not exempt, could get 24 hrs subsidised care per fortnight under the Child Care Safety Net, given their combined annual adjusted taxable income was $83,280 or less.

New Requirements

Under the new bill, from 1 January 2026, all families will have access to a minimum three days a week of subsidised early childhood education regardless of how many hours they spend studying or working.

The income test, however, remains unchanged and families earning more than $533,280 will still not be eligible for CCS.

Contact Us

Should you have any queries in relation to these eligibility changes, please feel free to contact our office to discuss further.