Early childhood education: child care subsidy (March 2025 Federal Budget Update)

Published on 26 March 2025 by Drew Pflaum
Categories: Government Budgets

The Government will provide $4.5 million over four years from 2025–2026 to Services Australia to make system changes to ensure consistency with the passing of recent legislation to implement the Child Care Subsidy (CCS) Three Day Guarantee. According to the Government, this will ensure families are entitled to at least three days a week of subsidised early childhood education and care.

The CCS Three Day Guarantee will replace the CCS activity test from January 2026.

The Government will also provide $2.5 million over two years from 2024–2025 as a one-off Business Continuity Payment of $10,000 to CCS approved services closed or partially closed for eight days or more due to impacts of Ex-Tropical Cyclone Alfred, subject to conditions, including providers agreeing to temporarily not charge families CCS gap fees during the closure period.