Australian Families Gain Access to Subsidised Childcare with 3 Day Guarantee
Sydney, 9 January 2026 – From 5 January 2026, the Australian Government implemented the 3 Day Childcare Subsidy Update, ensuring all eligible families receive at least three days of subsidised childcare per week, regardless of their work or study hours.
Key Changes to the Child Care Subsidy
The update removed the Activity Test, which previously limited subsidised hours based on parents’ work or study commitments. Now, families can access up to 72 hours of subsidised care per fortnight, equivalent to three days a week. For Aboriginal and Torres Strait Islander children, this extends to 100 hours per fortnight. Families must maintain an active claim with Centrelink and meet eligibility criteria, including income thresholds up to A$535,279 annually.
Benefits for Families
This reform aims to reduce childcare costs and promote access to quality early education. Families who previously missed out on subsidies due to the activity test could save up to A$1,460 per year on average. For example, some low-income families saw daily costs drop from A$150 to A$15 per day. The change benefits around 100,000 families, enhancing work-life balance and child development.
Key Facts
| Aspect | Details |
|---|---|
| Effective Date | 5 January 2026 |
| Subsidised Hours | At least 72 hours per fortnight (3 days/week); up to 100 hours for Indigenous children |
| Eligibility | Active Centrelink claim; household income below A$535,279 |
| Potential Savings | Up to A$1,460 per year for affected families |
| Number of Beneficiaries | Around 100,000 families |
Frequently Asked Questions
What is the 3 Day Guarantee?
The 3 Day Guarantee is part of the Child Care Subsidy reforms that provide all eligible families with at least three days of subsidised childcare per week, removing the need for the Activity Test.
Do families need to apply for this change?
No, existing Child Care Subsidy recipients do not need to take action; the changes were applied automatically. New applicants should lodge a claim with Services Australia.
Are there any exceptions or additional benefits?
Families with Aboriginal and Torres Strait Islander children can access up to 100 hours per fortnight. Exemptions apply for those with disabilities or other circumstances.
How does this affect childcare costs?
Families still pay a gap fee based on their subsidy percentage, but the guaranteed hours make childcare more affordable, potentially reducing out-of-pocket expenses significantly.