Early Childhood Education and Care (Three Day Guarantee) Bill 2025; Second Reading

McBride supported the bill, stating it would remove barriers for low-income families and guarantee three days of subsidy for all, with 100 hours for First Nations children and those in work or study. McBride argued the previous activity test had caused an 80 per cent decline in participation among low-income children and that the new policy would benefit over 100,000 families. McBride cited evidence showing the long-term economic and social benefits of early education and noted strong support from educators and experts.

Daniel supported the bill as a step towards universal early childhood education, arguing it would boost female workforce participation and reduce cost-of-living pressures. Daniel moved an amendment to note that universal high-quality, accessible, low-fee care would improve outcomes and equity, urging the government to be more ambitious. Daniel criticised the delay in passing the bill and argued that the activity test was a barrier to women's economic security and children's development.

Khalil supported the bill, highlighting its role in building a universal early education system and providing relief to over 100,000 families. Khalil emphasised the importance of early educators, noting the government's 15 per cent pay rise and investment in workforce retention. Khalil argued the previous activity test had excluded disadvantaged families and that the new guarantee would ensure equal opportunity and flexibility for parents.

Tink supported the bill, aligning it with community recommendations for universal, low-cost early childhood education. Tink argued the activity test was punitive and ineffective, citing research that showed no increase in workforce participation. Tink acknowledged ongoing workforce and supply challenges but viewed the reform as a positive step towards a more equitable system, similar to models in other countries.

Georganas supported the bill, stating it would ensure every child gets a fair start by guaranteeing 72 hours of subsidised care per fortnight. Georganas highlighted the government's investments in educator pay and the construction of new childcare centres, particularly in regional areas. Georganas argued the reforms would help retain staff and reduce costs for families, contributing to a professional and high-quality sector.

Ryan supported the bill but argued it did not go far enough, calling for the complete abolition of the activity test to achieve true universal access. Ryan highlighted the economic benefits of early education and the barriers faced by disadvantaged families and those with irregular work patterns. Ryan suggested establishing an early childhood development commission to oversee quality and equity, noting the need for targeted support in unprofitable areas.

Smith supported the bill, emphasising its role in providing cost-of-living relief and ensuring access for disadvantaged children. Smith cited data showing the previous activity test had limited workforce participation and excluded many families from early education. Smith highlighted the government's broader reforms, including fee caps and wage increases for educators, as essential steps towards a universal system.

Ware opposed the bill, arguing it does not guarantee access for working families and fails to address supply-side constraints. Ware cited discrepancies between government cost estimates and Productivity Commission modelling, suggesting the true cost could be significantly higher. Ware claimed the policy disincentivises aspiration and pits working families against non-working families.

Burnell supported the bill, emphasising the importance of early childhood education for long-term success and equity. Burnell argued the previous activity test was punitive and excluded low-income families, whereas the new guarantee ensures access for all. Burnell highlighted government efforts to increase childcare places and support educators, particularly in disadvantaged areas.

Violi opposed the legislation, stating that guaranteed access is meaningless without available places in childcare deserts. Violi questioned the government's costings and claimed childcare prices have risen since the government took office. Violi argued the bill ignores supply issues and misleads the public about the effectiveness of previous subsidies.

Fernando supported the bill, linking early education to economic strength and social equity. Fernando detailed savings for families under cheaper childcare reforms and investments in the educator workforce. Fernando highlighted the Building Early Education Fund to expand places in outer suburbs and criticised the opposition for opposing these measures.

Chandler-Mather supported the removal of the activity test but criticised the government for delaying the bill's passage. Chandler-Mather argued that electoral reform and other priorities were being prioritised over helping families access childcare. Chandler-Mather moved that the question be now put, urging the government to accelerate the bill's progress.

Chesters supported the bill, describing the activity test as complex and disadvantageous for families, particularly women. Chesters argued the reform simplifies access and ensures every child can benefit from early education. Chesters highlighted the importance of early intervention and criticised the opposition for opposing universal access.

Ryan strongly supported the bill, drawing on her experience as an educator to highlight the benefits of early education for vulnerable children. Ryan argued that the measure provides a safe environment and foundational skills for children from chaotic homes. Ryan criticised the opposition for opposing universal access and for focusing on parental activity rather than child welfare.

lead

Byrnes argued that the bill secures the right to early education for all children, replacing the restrictive activity test introduced in 2018. Byrnes stated that the previous system created barriers to workforce participation and disproportionately affected low-income and First Nations families. Byrnes highlighted that the guarantee will benefit over 100,000 families, with 66,700 projected to gain financially in the first full financial year, while no family will be worse off. Byrnes cited support from sector leaders who welcomed the removal of red tape and the focus on child development and workforce strengthening.

minister

Wells endorsed the bill as a step towards universal early education, noting it guarantees 72 hours of subsidy fortnightly for all families and 100 hours for First Nations children. Wells argued that the previous activity test halved subsidised hours for low-income families, causing a sharp decline in access for disadvantaged children. Wells highlighted that the government has already reduced childcare costs for over one million families and implemented a 15 per cent wage rise for educators. Wells contrasted Labor's investment in education with the Coalition's history of cuts, asserting that the bill supports families and builds a stronger future.

shadow minister

Webster opposed the bill, arguing it fails to help working families in rural and regional areas who face severe childcare shortages. Webster stated that removing the activity test would increase demand without addressing supply, forcing working parents to compete with non-working families for limited places. Webster highlighted that many regional towns have no childcare services at all, making the guarantee meaningless for those residents. Webster argued the bill disincentivises workforce participation and does not address the unique challenges of rural communities, including high costs and lack of infrastructure.

Haines supported the bill as a step towards universal childcare but emphasised that affordability is insufficient without adequate supply. Haines highlighted severe childcare deserts in regional areas, where waitlists are long and some towns have no services. Haines called for doubling the Building Early Education Fund grants to $1 billion to address infrastructure gaps. Haines also urged the government to shift the Community Child Care Fund away from competitive grants toward a system based on need to support regional providers.

Sitou argued that the activity test excluded thousands of children from low-income families, with participation dropping significantly after its introduction. Sitou stated that the three-day guarantee ensures all children have access to quality early learning, regardless of parental work status. Sitou highlighted that the government has established over 1,000 new childcare services and is setting a price for early education service delivery to ensure sustainability. Sitou asserted that investing in early education reduces inequality and strengthens the economy.

Ramsey argued that the guarantee is meaningless in regions with no childcare services, describing his electorate as a major childcare desert. Ramsey stated that private providers cannot operate viably in small towns, and local councils are reluctant to take on the role. Ramsey suggested that the Commonwealth should work with state education departments to provide care in rural areas. Ramsey criticised the government for increasing subsidies without addressing the lack of infrastructure in regional communities.

Thistlethwaite framed the bill as establishing early education as a right rather than a privilege. Thistlethwaite argued that the previous activity test was restrictive and that the new guarantee would benefit over 100,000 families. Thistlethwaite highlighted the government's investment in educator wages and the Building Early Education Fund to expand capacity. Thistlethwaite warned that the Coalition's proposed budget cuts would undermine the early childhood education system.

Caldwell argued that the cost of childcare has risen significantly under the current government, with daily fees increasing by nearly 20 per cent in one year. Caldwell stated that the activity test was designed to incentivise workforce participation and that removing it would create competition for limited places. Caldwell claimed the bill is a political stunt for the upcoming election and does not address the real barrier of high costs. Caldwell argued that inflation and interest rates have made families worse off, despite government subsidies.

Gorman argued that the bill delivers on Australia's obligations under the Convention on the Rights of the Child by ensuring universal access. Gorman highlighted that the guarantee provides certainty for families and benefits those most likely to need early education. Gorman noted that the government has added over 1,000 new childcare services and 97,000 additional places since taking office. Gorman commended state and local governments for their role in expanding early education opportunities.

lead

Pike opposed the bill, arguing it ignored severe supply constraints that make securing childcare places difficult, especially in outer-suburban and island communities. Pike claimed the removal of the activity test would force working parents to compete with non-working families for limited spots, creating unfairness and disincentivising workforce participation. Pike cited Productivity Commission modelling suggesting the true cost of removing the activity test was $2.3 billion annually, far exceeding the government's estimate of $426.7 million over five years. Pike also noted that childcare costs had risen significantly since the government took office, contradicting claims that the bill was a cost-of-living relief measure.

Pearce opposed the legislation, describing it as a politically motivated scheme that failed to address the lack of childcare places in rural and remote areas. Pearce explained that the bill would provide 72 hours of subsidised care per fortnight to families earning up to $533,000 annually, regardless of their work or study status, with higher hours for Indigenous families. Pearce argued this one-size-fits-all approach increased demand without increasing supply, thereby intensifying competition for existing spots. Pearce emphasised that the bill did not include measures to streamline regulations or support new centre startups to alleviate the shortage.