Coalition’s plan to reinstate childcare subsidy activity test would be a cruel setback for families already doing it tough

2025-04-23

The Greens have slammed the Coalition for revealing they would reinstate the punitive childcare subsidy activity test if elected to government, warning it would drag Australia backwards and punish families already doing it tough.

The Coalition's plan to reverse recent reforms comes just months after the Greens secured a major step forward by pushing Labor to remove the activity test for three days per week of early childhood education and care - a move backed by experts, advocates and families.

The activity test requires parents to disclose how many hours they spend in recognised activities like work or study in order to be eligible for subsidised childcare each fortnight through the childcare subsidy (CCS).  

The Greens have committed to making free, universal early childhood education and care a priority in the next Parliament, with a plan to provide 50 hours of free care a week for every child and to treat early education like public schooling, moving away from the complex and broken CCS altogether. 

Quotes attributable to Australian Greens early childhood education spokesperson, Senator Steph Hodgins-May:

"Peter Dutton’s plan is to make it harder for families to access childcare - plain and simple. The activity test is a failed Morrison-era policy that punishes parents who need support the most."

“The activity test unfairly punishes low-income families, especially those in insecure work or trying to re-enter the workforce, by creating a catch-22 where parents can’t get childcare without a job, and can’t get a job without childcare. 

“It locks over 100,000 children out of early education and disproportionately hurts single parents, families in insecure work, and those already out of the workforce. Reinstating it  would be cruel and a massive step backward away from universal access to childcare. 

“We know that accessible, high-quality early education benefits children, strengthens the economy, and eases cost-of-living pressure - especially for women.

“This announcement confirms what we knew: families can’t afford to risk a Dutton government.” 

“Only the Greens are committed to delivering free, universal early education - and in balance of power, we’ll make it happen.”