The proposal would reinstate the Child Care Subsidy (CCS) activity test for parents by reversing the Early Childhood Education and Care (Three-Day Guarantee) component of the 2024-25 Mid-Year Economic and Fiscal Outlook (MYEFO) measure Building Australia’s Future – Early Childhood Education and Care Reforms (the MYEFO measure).

The proposal would start on 1 January 2026.

This option would provide families with either the Child Care Subsidy (CCS) rates as set out in the table below, or the existing baseline CCS rates, depending on the subsidy calculation which is most generous to the family. The revised CCS rates would apply from 1 July 2023 to 30 June 2026, at which point the program would revert to existing policy settings.

Second (or subsequent) children of families with more than one child under six in child care would receive:

This option would provide families with either the Child Care Subsidy (CCS) rates as set out in the table below, or the existing baseline CCS rates, depending on the subsidy calculation which is most generous to the family. The revised CCS rates would apply from 1 July 2023 to 30 June 2026, at which point the program would revert to existing policy settings.

Second (or subsequent) children of families with more than one child under six in child care would receive:

The proposal has three parts.

The proposal has three parts.

The proposal has three parts.