{"id":"C2025A00012","name":"Early Childhood Education and Care (Three Day Guarantee) Act 2025","slug":"early-childhood-education-and-care-three-day-guarantee-act-2025","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"12 of 2025","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":436424,"registerId":"C2025A00012-fast-fetch-1775953625493","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Early Childhood Education and Care (Three Day Guarantee) Act 2025","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\n \n\n \n\n \n\n \n\n \n\n \n\nEarly Childhood Education and Care (Three Day Guarantee) Act 2025\n\nNo. 12, 2025\n\n \n\n \n\n \n\n \n\n \n\nAn Act to amend the law in relation to child care subsidy, and for related purposes\n\n \n\n \n\nContents\n\n1 Short title\n\n2 Commencement\n\n3 Schedules\n\nSchedule 1—Amendments\n\nA New Tax System (Family Assistance) Act 1999\n\nA New Tax System (Family Assistance) (Administration) Act 1999\n\nSchedule 2—Application, saving and transitional provisions\n\n \n\n![Commonwealth Coat of Arms of Australia](image.002.png)\n\n \n\n \n\nEarly Childhood Education and Care (Three Day Guarantee) Act 2025\n\nNo. 12, 2025\n\n \n\n \n\n \n\nAn Act to amend the law in relation to child care subsidy, and for related purposes\n\n[Assented to 20 February 2025]\n\nThe Parliament of Australia enacts:\n\n1  Short title\n\n  This Act is the Early Childhood Education and Care (Three Day Guarantee) Act 2025.\n\n2  Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this Act The later of:(a) 1 January 2026; and(b) the day after this Act receives the Royal Assent. 1 January 2026(paragraph (a) applies)\n\n\nNote: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.\n\n (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.\n\n3  Schedules\n\n  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.\n\nSchedule 1—Amendments\n\n \n\nA New Tax System (Family Assistance) Act 1999\n\n1  Subsection 3(1)\n\nInsert:\n\n3 day guarantee has the meaning given by subclause 11(1A) of Schedule 2.\n\n2  Subsection 3(1) (definition of activity test result)\n\nRepeal the definition.\n\n3  Subsection 3(1) (definition of deemed activity test result)\n\nRepeal the definition.\n\n4  Subsection 3(1)\n\nInsert:\n\ndeemed subsidised hours has the meaning given by clause 16 of Schedule 2.\n\n5  Subsection 3(1)\n\nInsert:\n\nincreased hours result has the meaning given by subclause 12(1) of Schedule 2.\n\n6  Subsection 3(1) (definition of low income result)\n\nRepeal the definition.\n\n7  Subsection 3(1) (definition of recognised activity)\n\nRepeal the definition.\n\n8  Subsection 3(1) (definition of recognised activity result)\n\nRepeal the definition.\n\n9  Subsection 3(1)\n\nInsert:\n\nrecognised participation type has the meaning given by subclause 12(2) of Schedule 2.\n\nsubsidised hours has the meaning given by subclause 11(1) of Schedule 2.\n\n10  Clause 1 of Schedule 2 (method statement, step 1)\n\nOmit “individual’s activity test result”, substitute “individual’s subsidised hours”.\n\n11  Clause 1 of Schedule 2 (method statement, step 1)\n\nOmit:\n\nIf the activity test result is zero, the amount of child care subsidy for the individual for the week, for the sessions of care provided by the service to the child, is nil.\n\nOtherwise, go to step 3.\n\n12  Clause 1 of Schedule 2 (method statement, step 5, paragraph (a))\n\nOmit “activity‑tested”, substitute “basic subsidy”.\n\n13  Clause 1 of Schedule 2 (method statement, step 5, paragraph (b))\n\nOmit “activity‑tested”, substitute “subsidy”.\n\n14  Clause 1 of Schedule 2 (method statement, step 6)\n\nOmit “activity‑tested”, substitute “basic subsidy”.\n\n15  Clause 1 of Schedule 2 (method statement, step 7)\n\nOmit “activity‑tested”, substitute “subsidy”.\n\n16  Clause 4 of Schedule 2 (heading)\n\nOmit “Activity‑tested amount”, substitute “Basic subsidy amount”.\n\n17  Subclause 4(1) of Schedule 2\n\nOmit “activity‑tested amount”, substitute “basic subsidy amount”.\n\n18  Subparagraph 4(1)(a)(i) of Schedule 2\n\nOmit “activity test result”, substitute “subsidised hours”.\n\n19  Subclause 4(2) of Schedule 2\n\nOmit “activity test result” (wherever occurring), substitute “subsidised hours”.\n\n20  Clause 4A of Schedule 2 (heading)\n\nRepeal the heading, substitute:\n\n4A  Adjusted subsidy amount of CCS\n\n21  Paragraph 4A(1)(a) of Schedule 2\n\nOmit “activity‑tested”, substitute “basic subsidy”.\n\n22  Subclause 4A(2) of Schedule 2\n\nOmit “adjusted activity‑tested amount”, substitute “adjusted subsidy amount”.\n\n23  Paragraphs 4A(2)(a) and (b) of Schedule 2\n\nOmit “activity‑tested”, substitute “basic subsidy”.\n\n24  Clause 8 of Schedule 2 (method statement, step 1)\n\nOmit “activity test result”, substitute “subsidised hours”.\n\n25  Clause 8 of Schedule 2 (method statement, steps 4 and 5)\n\nOmit “activity‑tested”, substitute “basic subsidy”.\n\n26  Clause 10 of Schedule 2 (heading)\n\nOmit “Activity‑tested”, substitute “Basic subsidy”.\n\n27  Subclause 10(1) of Schedule 2\n\nOmit “activity‑tested amount”, substitute “basic subsidy amount”.\n\n28  Paragraph 10(1)(a) of Schedule 2\n\nOmit “activity test result”, substitute “subsidised hours”.\n\n29  Subclause 10(2) of Schedule 2\n\nOmit “activity test result” (wherever occurring), substitute “subsidised hours”.\n\n30  Part 5 of Schedule 2 (heading)\n\nRepeal the heading, substitute:\n\nPart 5—Subsidised hours\n\n31  Division 1 of Part 5 of Schedule 2 (heading)\n\nRepeal the heading, substitute:\n\nDivision 1—Individual’s subsidised hours\n\n32  Clause 11 of Schedule 2 (heading)\n\nOmit “activity test result”, substitute “subsidised hours”.\n\n33  Subclause 11(1) of Schedule 2\n\nRepeal the subclause, substitute:\n\n (1) For the purposes of working out an amount of CCS or ACCS for an individual in relation to sessions of care provided to a child, an individual’s subsidised hours, in relation to the child, for a CCS fortnight is:\n\n (a) the highest of:\n\n (i) the 3 day guarantee (see subclause (1A)); and\n\n (ii) any other result specified in an item of the table in subclause (1B) for the amount that applies to the individual in relation to the child; or\n\n (b) if the individual is a member of a couple on the first day of the CCS fortnight—the lower of the following:\n\n (i) the result worked out in accordance with paragraph (a) for the individual in relation to the child;\n\n (ii) the result worked out in accordance with paragraph (a) for the individual’s partner in relation to the child.\n\n3 day guarantee\n\n (1A) The 3 day guarantee for an individual for a CCS fortnight, in relation to any child, is 72.\n\nResults that increase subsidised hours\n\n (1B) This subclause specifies other results for an amount of CCS or ACCS for the purposes of subparagraph (1)(a)(ii).\n\n \n\n- Results that increase subsidised hours\n- Item Results for amount of CCS Results for amount of ACCS (child wellbeing), ACCS (temporary financial hardship) or ACCS (grandparent) Results for amount of ACCS (transition to work)\n- 1 increased hours result in clause 12 100 increased hours result in clause 12\n- 2 Minister’s rules result in clause 14 Minister’s rules result in clause 14 Minister’s rules result in clause 14\n- 3 child wellbeing result in clause 15 child wellbeing result in clause 15\n- 4 exceptional circumstances result in this clause exceptional circumstances result in this clause exceptional circumstances result in this clause\n- 5 Aboriginal or Torres Strait Islander child result in clause 15A Aboriginal or Torres Strait Islander child result in clause 15A\n\n\nNote: See subclause (5) for an individual eligible for both CCS and ACCS in the same CCS fortnight.\n\n34  Subclause 11(5) of Schedule 2\n\nOmit “activity test result” (wherever occurring), substitute “subsidised hours”.\n\n35  Clause 12 of Schedule 2 (heading)\n\nOmit “Recognised activity”, substitute “Increased hours”.\n\n36  Subclause 12(1) of Schedule 2\n\nRepeal the subclause, substitute:\n\n (1) The increased hours result is 100.\n\nNote: The number of hours of a recognised participation type for an individual to be counted towards the increased hours result may be affected by Minister’s rules made for the purposes of subclause (4), or a Secretary’s determination made under subclause (5).\n\n (1A) The increased hours result applies to an individual for a CCS fortnight if the individual engages in more than 48 hours of a recognised participation type in the CCS fortnight.\n\n37  Subclause 12(2) of Schedule 2 (heading)\n\nOmit “recognised activity”, substitute “a recognised participation type”.\n\n38  Subclause 12(2) of Schedule 2\n\nOmit “recognised activity”, substitute “a recognised participation type”.\n\n39  Paragraphs 12(2)(d) and (e) of Schedule 2\n\nOmit “an activity”, substitute “a participation type”.\n\n40  Subclause 12(3) of Schedule 2\n\nRepeal the subclause, substitute:\n\nAssociated participation types\n\n (3) An individual who engages in a recognised participation type mentioned in any of paragraphs (2)(a) to (d) is taken also to engage in the recognised participation type while:\n\n (a) engaging in another participation type prescribed by the Minister’s rules as being associated with the recognised participation type; or\n\n (b) taking leave or another break from, or otherwise not performing, the recognised participation type in circumstances prescribed by the Minister’s rules (whether or not the individual has engaged in the recognised participation type during the CCS fortnight).\n\n41  Subclause 12(4) of Schedule 2 (heading)\n\nOmit “activities”, substitute “participation types”.\n\n42  Subclause 12(4) of Schedule 2\n\nOmit “recognised activity result”, substitute “increased hours result”.\n\n43  Subclause 12(4) of Schedule 2\n\nOmit “in recognised activity”, substitute “in a recognised participation type”.\n\n44  Paragraph 12(4)(a) of Schedule 2\n\nOmit “recognised activity of that kind”, substitute “the recognised participation type”.\n\n45  Paragraphs 12(4)(a) and (b) of Schedule 2\n\nOmit “the activity” (wherever occurring), substitute “the participation type”.\n\n46  Subclause 12(7) of Schedule 2 (heading)\n\nOmit “recognised activity”, substitute “a recognised participation type”.\n\n47  Subclause 12(7) of Schedule 2\n\nOmit “recognised activity result”, substitute “increased hours result”.\n\n48  Subclause 12(7) of Schedule 2\n\nOmit “of recognised activity”, substitute “of a recognised participation type”.\n\n49  Clause 13 of Schedule 2\n\nRepeal the clause.\n\n50  Subclause 15A(1) of Schedule 2\n\nOmit “36”, substitute “100”.\n\n51  Division 2 of Part 5 of Schedule 2 (heading)\n\nOmit “activity test result”, substitute “subsidised hours”.\n\n52  Clause 16 of Schedule 2 (heading)\n\nOmit “activity test result”, substitute “subsidised hours”.\n\n53  Subclause 16(1) of Schedule 2\n\nOmit “deemed activity test result”, substitute “deemed subsidised hours”.\n\nA New Tax System (Family Assistance) (Administration) Act 1999\n\n54  Subparagraphs 67CE(1)(b)(ii) and 105D(2)(a)(ii)\n\nOmit “activity test result”, substitute “subsidised hours”.\n\n55  Subparagraphs 105E(1)(c)(ii) and (3)(c)(ii)\n\nOmit “activity test result”, substitute “subsidised hours”.\n\n56  Paragraphs 108(5)(b) and 111(2A)(b)\n\nOmit “activity test result”, substitute “subsidised hours”.\n\n57  Paragraph 157(2)(k)\n\nOmit “activity” (wherever occurring), substitute “participation type”.\n\nSchedule 2—Application, saving and transitional provisions\n\n \n\n1  Application of amendments\n\n(1) The A New Tax System (Family Assistance) Act 1999 and the A New Tax System (Family Assistance) (Administration) Act 1999 as amended by Schedule 1 to this Act apply in relation to sessions of care provided to a child in a CCS fortnight that starts on or after the commencement of this item.\n\n(2) For the purposes of applying the A New Tax System (Family Assistance) (Administration) Act 1999 on or after the commencement of this item in relation to sessions of care provided to a child in a CCS fortnight that starts before that commencement:\n\n (a) any reference to subsidised hours is taken to include a reference to an activity test result; and\n\n (b) any reference to a participation type is taken to include a reference to recognised activity.\n\n2  Transitional provision\n\n(1) A rule made under paragraph 12(2)(d), 12(3)(a) or (b) or 12(4)(a) or (b) of Schedule 2 to the A New Tax System (Family Assistance) Act 1999 that was in force immediately before the commencement of this item continues in force (and may be dealt with) as if it had been made under that paragraph as amended by this Act.\n\n(2) A determination made under paragraph 11(3)(b), subclause 12(5) or paragraph 16(1)(c) of Schedule 2 to the A New Tax System (Family Assistance) Act 1999 that was in force immediately before the commencement of this item continues in force (and may be dealt with) as if it had been made under that paragraph as amended by this Act.\n\n3  Transitional rules\n\n(1) The Minister may, by legislative instrument, make rules prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments made by Schedule 1 to this Act.\n\n(2) To avoid doubt, the rules may not do the following:\n\n (a) create an offence or civil penalty;\n\n (b) provide powers of:\n\n (i) arrest or detention; or\n\n (ii) entry, search or seizure;\n\n (c) impose a tax;\n\n (d) set an amount to be appropriated from the Consolidated Revenue Fund;\n\n (e) directly amend the text of an Act.\n\n \n\n \n\n \n\n \n\n[Minister’s second reading speech made in—\n\nHouse of Representatives on 5 February 2025\n\nSenate on 13 February 2025]\n\n \n\n(6/25)\n\n \n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: reforming the childcare subsidy activity test. While it makes substantial changes to the Family Assistance Act 1999, these are structural replacements rather than scope expansion. The 'Three Day Guarantee' was the announced policy intent, and the amendments deliver exactly that — replacing the activity-tested framework with a guaranteed minimum plus enhanced hours for participating families. No unrelated policy areas have been added."},"complexity_factors":["57 amendment items across two existing Acts, requiring cross-referencing to understand the full effect","Extensive terminology replacement throughout (e.g., 'activity test result' → 'subsidised hours', 'recognised activity' → 'recognised participation type')","Nested conditional logic in new clause 11(1): the '3 day guarantee' of 72 hours operates as a floor, but couples face a complex 'lower of' rule comparing both partners' entitlements","Multiple overlapping pathways to increased hours: increased hours result (100 hrs), Minister's rules, child wellbeing, exceptional circumstances, and Aboriginal/Torres Strait Islander child results","Transitional provisions preserving existing rules and determinations under new legislative framework","Method statement amendments in Schedule 2 requiring tracking of step-by-step calculations across multiple clauses"],"plain_english_summary":"This law changes how the government calculates childcare subsidies for Australian families. Previously, parents had to prove they were working, studying, or doing other 'recognised activities' to get more than a minimal amount of subsidised childcare hours — this was called the 'activity test'. \n\n**What this law does:**\n- **Guarantees 3 days of subsidised childcare** (72 hours per fortnight) for every child, regardless of whether parents are working or not. This is the 'Three Day Guarantee'.\n- **Removes the activity test** as the gatekeeper for basic childcare support. Parents no longer need to jump through hoops to prove they're busy to get meaningful subsidy.\n- **Keeps higher subsidies for working families**: If parents engage in more than 48 hours per fortnight of 'recognised participation' (work, study, volunteering, etc.), they get up to 100 hours of subsidised care — renamed from 'activity test result' to 'increased hours result'.\n- **Simplifies the language**: Replaces jargon like 'activity test result' and 'recognised activity' with clearer terms like 'subsidised hours' and 'participation type'.\n\n**Who it affects:**\n- **All families using childcare** — especially those who previously got little or no subsidy because they couldn't meet activity test requirements (e.g., parents not in paid work, those in casual or irregular work, or those caring for other children).\n- **Aboriginal and Torres Strait Islander children** — who now get up to 100 hours of subsidised care (up from 36 hours).\n\n**Why it matters:**\nThis is a significant shift from a punitive, compliance-heavy system to one that treats early childhood education as a universal entitlement. It recognises that children benefit from early education regardless of their parents' employment status, and removes administrative barriers that often excluded vulnerable families."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The Act materially changes how entitlements are calculated by replacing the previous \"activity test result\" framework with a \"subsidised hours\" approach (Schedule 1 amendments; subclause 11(1)). It guarantees a minimum of 72 subsidised hours per fortnight (the 3 day guarantee, subclause 11(1A)) and creates an \"increased hours\" 100‑hour result (subclause 12(1)). The Minister may prescribe participation types and associated rules (subclause 12(3); Schedule 2(3)), and transitional provisions treat old terms as equivalent to new ones for periods spanning commencement (Schedule 2, items 1–2)."},"complexity_factors":["Extensive cross‑Act amendments replacing core defined terms (multiple items in Schedule 1) which require coordinated updates across legislation and administration.","Introduction of fixed numerical guarantees (3 day guarantee = 72 hours; increased hours = 100) that alter entitlement calculations (subclause 11(1A); 12(1)).","Shift from an activity‑result model to an hours‑based model (subclause 11(1)), changing underlying eligibility mechanics and payment formulas.","New and broader ministerial rule‑making discretion to define and associate participation types and transitional matters (subclause 12(3); Schedule 2(3)).","Transitional and saving provisions that preserve prior rules and determinations for continuity but require mapping old terms to new ones (Schedule 2, items 1–3).","Administrative impact on method statements and payment steps across multiple clauses (many substitutions in Clause 1, Clause 4, Clause 10, Part 5), raising implementation and systems‑change risk.","Interaction across different subsidy streams (CCS and various ACCS categories) and couple‑specific rules (subclause 11(1)(b)) increases edge‑case complexity for assessment and compliance."],"plain_english_summary":"Mechanically, the Act replaces the child care subsidy \"activity test result\" with a new \"subsidised hours\" method, establishing a 3‑day guarantee of 72 subsidised hours per fortnight and an \"increased hours\" 100‑hour result (subclause 11(1A); 12(1)). It affects parents and carers using CCS and ACCS, child care services, and the Department that administers payments. The Minister gains rule‑making power to define participation types; families may receive higher minimum subsidised hours, changing incentives around work, care usage and service billing."}},"importantCases":[],"_links":{"self":"/api/acts/early-childhood-education-and-care-three-day-guarantee-act-2025","history":"/api/acts/early-childhood-education-and-care-three-day-guarantee-act-2025/history","analysis":"/api/acts/early-childhood-education-and-care-three-day-guarantee-act-2025/analysis","conflicts":"/api/acts/early-childhood-education-and-care-three-day-guarantee-act-2025/conflicts","importantCases":"/api/acts/early-childhood-education-and-care-three-day-guarantee-act-2025/important-cases","documents":"/api/acts/early-childhood-education-and-care-three-day-guarantee-act-2025/documents"}}