Early Education 3-Day Guarantee
What this means for families
The Australian Federal Government introduced the Childcare 3-Day Guarantee Bill on 5 February 2025, which passed on 13 February 2025 and will come into effect in January 2026. Ambrose and Community Ventures welcomes this reform, as it removes barriers to participation in early childhood education and provides critical support to vulnerable families.
What is the 3-Day Guarantee?
Currently, to be eligible for the Child Care Subsidy (CCS), families must pass an activity test. This test assesses the number of hours parents spend in work, study, training, or other recognised activities to determine their CCS entitlements.
Under the 3-Day Guarantee, the activity test will be abolished for the first 72 hours of subsidised care per fortnight. This means all children, regardless of their parents’ employment status, will have access to at least three days (72 hours) of CCS-funded childcare every two weeks.
Will Childcare Be Free?
No, childcare will not be free. Under the Bill:
- Normal provider-set fees will still apply.
- All families will be eligible for CCS funding for at least 72 hours of care per fortnight, regardless of their level of workforce participation.
- The CCS remains means-tested, meaning the subsidy amount depends on household income.
- Some families may receive up to 95% CCS.
- Families who meet additional criteria (such as higher workforce participation) may qualify for more than 72 hours of subsidised care.
In essence, this change ensures that the CCS, traditionally accessible primarily to working families, will now be extended to all families.
Which Ambrose Services Will the 3-Day Guarantee Apply To?
The 3-Day Guarantee will apply to all childcare services that receive CCS funding, including:
- Long Day Care (LDC)
- Outside School Hours Care (OSHC) including vacation care
For Ambrose, this includes our three extended-hours preschools and OSHC services. However, it will not apply to traditional preschools that do not receive CCS funding.
Why is it Called the 3-Day Guarantee?
The Bill guarantees 72 hours of subsidised care per fortnight (equivalent to 36 hours per week). Many long daycare centres operate 12-hour days, meaning this would cover three full days of care per week – hence the name “3-Day Guarantee.”
For OSHC services, which typically run 2-hour morning (BSC) and 3-hour afternoon (ASC) sessions, this guarantee means that families can access up to five days of BSC and ASC services with CCS coverage.
Ambrose aims to support all families within our community. With the introduction of the 3-Day Guarantee, we are committed to ensuring that every child has the opportunity to benefit from early childhood education and care, regardless of their family’s circumstances.
Find more information about the 3-Day Guarantee at the Department of Education.
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