Starting January 5 Australian parents can get three days of cheaper childcare each week through Centrelink. This new rule makes things easier because parents won’t need to prove how much they work or study anymore.
Prime Minister Anthony Albanese first told everyone about this plan last December. The government approved these changes earlier this year. The old system that checked parents’ work and study hours will end. This means all families can now get childcare support no matter what they do.
Starting January 5, 2026 families who meet the requirements will receive at least 72 hours of cheaper child care every two weeks. The government calls this new program the 3 Day Guarantee. This update from Services Australia will help many parents with their child care costs.
The new childcare rules will help many Australian families. Over 100,000 households can now get extra support for their kids’ care costs. In the first year alone about 66,700 families will pay less for childcare.
If your family makes between $50,000 and $100,000 each year you can save about $1460. Let’s look at what these changes mean and how they can help your family save money on childcare.
What is driving the childcare subsidy change in 2025?
Parents need to pass an activity test to get help with childcare costs. This rule started in 2018. To pass the test you must have a job or be studying or doing volunteer work.
The government looks at how many hours you do these activities each week. This then decides how much money they will give you for childcare. The more hours you work study or volunteer the more support you can get. This system helps families who are active in work or education get the childcare they need.
Parents must work between 16 and 48 hours every two weeks to get 72 hours of cheaper childcare.
Last year a government report said this rule should be removed. The report showed that the work requirements made it hard for families with less money to get childcare.
It also didn’t help more people find jobs. One of the report’s authors said that kids should get three days of childcare each week no matter how much their parents work.
What real difference will the $1,460 support make for Aussie families?
Every family that qualifies for childcare support will receive at least 72 hours of subsidized care every two weeks. You can get more hours if you meet certain rules.
Parents can access up to 100 hours of subsidized care per two weeks if both partners work or study for more than 48 hours in that time. This higher amount also applies to families with special exemptions. Services Australia manages these benefits for eligible families.
Native Australian kids can now get 100 hours of cheaper child care every two weeks.
Parents will still need to pay some money to their daycare center. If you already receive help with child care costs, you don’t need to take any action.
The government will update your benefits automatically. However, families that make more than $535279 in 2025-26 cannot get this cheaper child care. This follows the same rules as before.
How do changes in Centrelink deeming rates affect Australian pensioners?
Pensioners need to stay informed about potential impacts on their finances.
