Activity test set to be scrapped for childcare subsidies

DLA Partners Professional Accountants and Advisors in Brisbane Activity Test Set To Be Scrapped For Childcare Subsidies

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

Previously, families that applied to claim the childcare subsidy (CCS) were required to pass the income test and 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 hours each fortnight before they can access 72 hours of subsidised care.

Activity level each fortnight Hours of subsidised care each fortnight
Less than 8 hours 0 hours if income above $83,280, 24 hours if income below $83,280, 36 hours for Aboriginal or Torres Strait Islander children
8 hours to 16 hours 36 hours
More than 16 to 48 hours 72 hours
More than 48 hours 100 hours

Families who do not meet the activity test and are not exempt, could get 24 hours of 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 on 07 3863 9444 to discuss further.

 

The information (including taxation) contained on this website is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. DLA Partners strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.

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