Families across Australia will gain access to at least three days of subsidised childcare from Jan. 5 under new reforms introduced by the Albanese government, removing previous restrictions based on parents' work or study hours.
The changes make all children eligible for three days of childcare per week and abolish the Coalition-era activity test, which tied subsidy levels to workforce participation.
Advocates have welcomed the reforms as a significant step towards a universal childcare system, saying they will particularly benefit families who have previously been unable to afford early education.
Under the former rules, parents seeking to re-enter the workforce or increase their hours often struggled to access enough subsidised care.
The government estimates the reforms will allow around 100,000 additional families to use childcare and enable nearly 40,000 parents to return to work or increase their hours.
Early Childhood Education Minister Jess Walsh said too many children had missed out on early learning opportunities, while Education Minister Jason Clare said early education should be viewed with the same importance as schooling.
Albanese has flagged universal childcare as a long-term legacy policy.
The reforms come alongside measures to address workforce shortages and access issues, including higher wages, fee-free TAFE courses and a $1 billion fund to build centres in childcare deserts.
Treasury forecasts subsidies will cost an additional $2 billion over four years due to higher demand, with Treasurer Jim Chalmers describing the changes as an investment in Australia's future.