On 11 December 2024, Prime Minister Anthony Albanese announced that a re-elected Albanese Labor Government will take the first steps toward building a universal early education and care system by expanding access to quality childcare nationwide.
As part of these reforms, the Government will introduce the 3 Day Guarantee, ensuring every child has access to at least three days of high-quality early childhood education and care.
From January 2026, the 3 Day Guarantee will replace the current Activity Test, providing guaranteed eligibility for three days per week of subsidised early education for every single family in Australia. This will enable at least 126,000 children from the most disadvantaged households to access childcare.
For example, Robin and Alex, a couple with one child, currently use 36 hours of early childhood education and care (ECEC) per week. Their combined income is $90,000 per year—Robin works full-time, and Alex works 8 hours per week.
Under the current system, they are eligible for 18 hours of subsidised ECEC per week (36 hours per fortnight). From January 2026, they will be eligible for 36 hours per week (72 hours per fortnight), saving them $11,400 per year based on the average Centre-Based Day Care hourly fee.
Another example is Fatima, a stay-at-home mum. Currently eligible for 24 hours of subsidised childcare per fortnight, she will be able to access up to 72 hours under the new system.
To support this, from July 2025, the Government will invest $1 billion to expand and build 160 new childcare centres, including in areas like Cranbourne and Clyde, representing one of the largest expansions in Australia’s childcare history.
The Building Early Education Fund will deliver grants to providers, and the Government will explore options for investing in owning and leasing services.
The Government is also delivering a 15 per cent pay rise for early educators, which starts this week. These hardworking professionals, have long been undervalued, are finally getting the recognition and support they deserve.
Cassandra Fernando
Federal Member for Holt
