The government fears removing the activity test altogether risks turning childcare into another “free for all” like the NDIS.
Already a subscriber?The Albanese government is considering changes to the activity test to increase access to childcare subsidies, but fears removing it altogether risks creating another “free for all” like the National Disability Insurance Scheme.
Despite the government bolstering childcare subsidies annually by more than $5 billion last year, it faces considerably more expensive demands in the sector in terms of paying higher wages and removing the activity test.As a major employer in the sector, the government has been called as a party to a current multi-employer wage claim in which the union is seeking a 25 per cent increase to match that granted recently to the aged care sector.
Ms Daniel said a recent report by Impact Economics and Policy found the activity test contributed to at least 126,000 Australian children from low-income households missing out on early childhood education.
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