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2022-2023-2024-2025
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
EARLY CHILDHOOD EDUCATION AND CARE (THREE DAY GUARANTEE) BILL 2025
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Education, the Hon Jason Clare MP)
TABLE OF CONTENTS
TABLE OF CONTENTS ........................................................................................................ I
GLOSSARY ........................................................................................................................................................ 1
EARLY CHILDHOOD EDUCATION AND CARE (THREE DAY GUARANTEE)
BILL 2025 ................................................................................................................................. 2
OUTLINE ................................................................................................................................. 2
FINANCIAL IMPACT STATEMENT.................................................................................. 3
CONSULTATION ................................................................................................................... 3
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS .................................... 4
Overview of the Bill ......................................................................................................................................... 4
Human rights implications ............................................................................................................................... 5
Conclusion ....................................................................................................................................................... 7
Clause 1: Short title.......................................................................................................................................... 8
Clause 2: Commencement ............................................................................................................................... 8
Clause 3: Schedules .......................................................................................................................................... 8
SCHEDULE 1--AMENDMENTS ......................................................................................... 9
SCHEDULE 2--APPLICATION PROVISION AND TRANSITIONAL RULES ......... 15
i
GLOSSARY
Abbreviation Definition
ACCS Additional Child Care Subsidy
ACCC Australian Competition & Consumer
Commission
AEDC Australian Early Development Census
CCS Child Care Subsidy
ECEC Early childhood education and care
Family Assistance Act A New Tax System (Family Assistance) Act
1999
Family Assistance Administration Act A New Tax System (Family Assistance)
(Administration) Act 1999
PC Productivity Commission
1
EARLY CHILDHOOD EDUCATION AND CARE (THREE DAY GUARANTEE) BILL 2025
OUTLINE
The purpose of the Early Childhood Education and Care (Three Day Guarantee) Bill 2025 (the
Bill) is to give effect to the Australian Government's 3 day guarantee, replacing the Child
Care Subsidy (CCS) activity test to ensure Australian families are entitled to at least three
days of CCS per week for early childhood education and care (ECEC), as well as extending a
greater entitlement to subsidised care for families caring for an Aboriginal or Torres Strait
Islander child.
This reform is part of the next steps in building a universal early education and care system,
expanding access to quality early education across the country. The measure has been
informed by the Productivity Commission (PC) and the Australian Consumer and
Competition Commission's (ACCC) inquiries into early education, which the Australian
Government commissioned to identify a pathway to universal ECEC in Australia. It will
improve ECEC affordability, easing cost-of-living pressures for families and supporting ECEC
access, particularly for low income families whose children are most likely to benefit from
ECEC attendance. It will make accessing subsidies simpler and empower families,
particularly women, to choose to work, study, volunteer, or engage in other non-
employment related activities.
The Bill makes amendments to the A New Tax System (Family Assistance) Act 1999 (the
Family Assistance Act), and the A New Tax System (Family Assistance) (Administration) 1999,
(the Family Assistance Administration Act) which are the key Acts that determine families'
fortnightly entitlements to CCS and the ACCS (the Additional Child Care Subsidy).
Schedule 1 - Amendments
Amendments to the Family Assistance Act in Schedule 1 to the Bill will impact the number of
hours of CCS that families are entitled to receive per fortnight.
The CCS activity test determines the maximum number of hours per fortnight of subsidised
ECEC a child is entitled to, based on time spent by parents and carers undertaking
'recognised activities', including paid work, study and volunteering. Families who do not
undertake sufficient recognised activity may currently receive 0 or 36 hours of CCS per
fortnight (unless an exception applies). The amendments in Schedule 1 will replace the
current CCS activity test and provide a guaranteed minimum of 72 hours per fortnight of
subsidised ECEC for all families, regardless of the time spent on recognised participation
types, and a guaranteed 100 hour entitlement per fortnight for parents caring for an
Aboriginal or Torres Strait Islander child.
Amendments to the Family Assistance Act and Family Assistance Administration Act in
Schedule 1 to the Bill will also update the language of the activity test. These are solely
terminological changes intended to reflect the 3 day guarantee policy settings.
2
Schedule 2 - Application and saving provisions and transitional rules
Application, saving and transitional provisions in Schedule 2 to the Bill will ensure that the
amendments apply to sessions of care provided to a child in a CCS fortnight that starts on or
after the commencement of the Bill. This will assist families and providers by ensuring the
amendments do not take effect mid-way through a CCS fortnight. These provisions will also
ensure that rules and determinations made under relevant provisions remain in effect, and
will allow the Minister to prescribe rules relating to the application of amendments, and
transition to the new policy settings.
FINANCIAL IMPACT STATEMENT
The amendments in Schedule 1 to the Bill are estimated to have a cost of $426.7 million
over five years from 2024-25.
CONSULTATION
Consultation has been undertaken with relevant Commonwealth agencies including the
Department of Finance, the Department of the Prime Minister and Cabinet, the Treasury,
the National Indigenous Australians Agency, the Department of Social Services and the
Department of Employment and Workplace Relations.
Extensive public consultation has been undertaken as part of reviews commissioned by the
Government such as the ACCC's inquiry into childcare and the PC's inquiry into ECEC.
Broadly, stakeholders and key voices for the sector have welcomed the increased support
for families. Both the ACCC and the PC recommended reform of the activity test.
Services Australia has been closely engaged as a critical delivery partner in implementing the
amendments, including the ICT system changes to administer the measure and staff and
system process changes to calculate and administer CCS payments with providers and
families.
3
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Early Childhood Education and Care (Three Day Guarantee) Bill
The Early Childhood Education and Care (Three Day Guarantee) Bill (the Bill) is compatible
with the human rights and freedoms recognised or declared in the international instruments
listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
The purpose of the Early Childhood Education and Care (Three Day Guarantee) Bill 2025 (the
Bill) is to give effect to the Australian Government's 3 day guarantee, replacing the Child
Care Subsidy (CCS) activity test to ensure Australian families are entitled to at least three
days of CCS per week for early childhood education and care (ECEC), as well as extending a
greater entitlement to subsidised care for families caring for an Aboriginal or Torres Strait
Islander child.
This reform is part of the next steps in building a universal early education and care system,
expanding access to quality early education across the country. The measure has been
informed by the Productivity Commission (PC) and the Australian Consumer and
Competition Commission's (ACCC) inquiries into early education, which the Australian
Government commissioned to identify a pathway to universal ECEC in Australia. It will
improve ECEC affordability, easing cost-of-living pressures for families and supporting ECEC
access, particularly for low-income families whose children are most likely to benefit from
ECEC attendance. It will make accessing subsidies simpler and empower families,
particularly women, to choose to work, study, volunteer, or engage in other non-
employment related activities.
The Bill makes amendments to the A New Tax System (Family Assistance) Act 1999 (the
Family Assistance Act), and the A New Tax System (Family Assistance) (Administration) 1999,
(the Family Assistance Administration Act) which are the key Acts that determine families'
fortnightly entitlements to CCS and the ACCS (the Additional Child Care Subsidy).
Schedule 1 - Amendments
Amendments to the Family Assistance Act in Schedule 1 to the Bill will impact the number of
hours of CCS that families are entitled to receive per fortnight.
The CCS activity test determines the maximum number of hours per fortnight of subsidised
ECEC a child is entitled to, based on time spent by parents and carers undertaking
'recognised activities', including paid work, study and volunteering. Families who do not
undertake sufficient recognised activity may currently receive 0 or 36 hours of CCS per
fortnight (unless an exception applies). The amendments in Schedule 1 will replace the
current CCS activity test and provide a guaranteed minimum of 72 hours per fortnight of
subsidised ECEC for all families, regardless of the time spent on recognised participation
types, and a guaranteed 100 hour entitlement per fortnight for parents caring for an
Aboriginal or Torres Strait Islander child.
4
Amendments to the Family Assistance Act and Family Assistance Administration Act in
Schedule 1 to the Bill will also update the language of the activity test. These are solely
terminological changes intended to reflect the 3 day guarantee policy settings.
Schedule 2 - Application and saving provisions and transitional rules
Application, saving and transitional provisions in Schedule 2 to the Bill will ensure that the
amendments apply to sessions of care provided to a child in a CCS fortnight that starts on or
after the commencement of the Bill. This will assist families and providers by ensuring the
amendments do not take effect mid-way through a CCS fortnight. These provisions will also
ensure that rules and determinations made under relevant provisions remain in effect, and
will allow the Minister to prescribe rules relating to the application of amendments, and
transition to the new policy settings.
Human rights implications
The Bill engages the following rights:
• the rights of parents and children - articles 3, 18 and 27 of the Convention on the
Rights of the Child (CRC);
• the right to education - article 13(1) of the International Covenant on Economic,
Social and Cultural Rights (ICESCR);
• the right to equality and non-discrimination, particularly on the basis of race - article
2(2) of the ICESCR and article 2 of the International Convention on the Elimination of
All Forms of Racial Discrimination (CERD).
Rights of parents and children
Article 3 of the CRC states that in all actions concerning children, the best interests of the
child shall be a primary consideration. Further, article 18 of the CRC requires States Parties
to take all appropriate measures to ensure that children of working parents have the right
to benefit from child care services and facilities. Finally, article 27 of the CRC recognises the
right of every child to a standard of living adequate for the child's physical, mental, spiritual,
moral and social development.
The Bill promotes the rights of parents and children, and the best interest of children, by
providing greater subsidisation of the costs of ECEC. The Bill provides greater access to child
care services by easing cost-of-living pressures faced by families, particularly low-income
families, who are disproportionately likely to have fewer subsidised hours under current
activity test requirements. In particular, the Bill increases minimum entitlements to 72 hours
per fortnight for all families, and increases minimum entitlements to 100 hours per fortnight
for families caring for an Aboriginal or Torres Strait Islander child.
The Bill also promotes the rights of children, and the best interests of children, by increasing
access to high quality ECEC. Evidence shows ECEC - when delivered in a quality setting - is a
key protective factor, and positively relates to children's developmental outcomes
(Australian Early Development Census (AEDC), 2020). In particular, the amendments will
increase the hours of subsidised care available for Aboriginal and Torres Strait Islander
5
children. The amendments are also intended to increase access to high quality ECEC by
increasing the affordability of this care.
The Bill is compatible with the rights in articles 3, 18 and 27 of the CRC because it promotes
the rights of parents and children.
Right to education
Article 13(1) of the ICESCR recognises the right of everyone to education.
The Bill promotes this right by increasing access to ECEC by increasing the number of
subsidised hours of ECEC all families are entitled to. Quality ECEC lays the foundation for
lifelong development and learning and leads to better health, education and employment
outcomes later in life. The Bill increases the number of hours of subsidised ECEC for families
and expands the opportunity for children to access the benefits of ECEC. The Bill will also be
beneficial for low income families, whose children are most likely to benefit from ECEC
attendance.
The Bill is compatible with the right to education in article 13(1) of the ICESCR because it
promotes the right to education.
Right to equality and non-discrimination
Article 2(2) of the ICESCR provides that States Parties undertake to guarantee that the rights
set out in the ICESCR will be exercised without discrimination of any kind, including on
grounds of race. Article 2 of the CERD requires States Parties to pursue a policy of
eliminating racial discrimination in all its forms.
The Bill introduces a new baseline entitlement of 100 subsidised hours of care per fortnight
for Aboriginal and Torres Strait Islander children. This increases the existing Aboriginal or
Torres Strait Islander child entitlement of 36 subsidised hours of care to 100 subsidised
hours of care per fortnight.
Article 1(4) of the CERD recognises that 'special measures taken for the sole purpose of
securing adequate advancement of certain racial or ethnic groups or individuals requiring
such protection as may be necessary in order to ensure such groups or individuals equal
enjoyment or exercise of human rights and fundamental freedoms shall not be deemed
racial discrimination.' The increased 'Aboriginal or Torres Strait Islander child result' is
intended to be a special measure to benefit a racial or ethnic group, that is Aboriginal and
Torres Strait Islander children, as contemplated by article 1(4) of the CERD.
Notably, the Convention on the Rights of the Child Committee has explicitly discussed the
need for Indigenous children to be the subject of special measures designed to increase
their access to education and social services.1
Evidence shows that access to quality early childhood education reduces developmental
vulnerability for children, and improves early childhood development, particularly for
1
CRC Committee, General Comment 11, Indigenous Children and their rights under the Convention (2009),
paragraphs 24-25.
6
children experiencing disadvantage. The most recent AEDC report found that only 34.3 per
cent of First Nations children (and 42.7 per cent of children experiencing the highest level of
socioeconomic disadvantage) were developmentally on track upon starting school,
compared to 54.8 per cent of all children (2021). Submissions to the PC Inquiry reported
that the current activity test represents a barrier to ECEC access for First Nations families, by
restricting access to subsidised hours and imposing greater administrative burdens. Despite
the current activity test policy for First Nations children that provides 36 hours of subsidised
ECEC a fortnight, the PC Inquiry heard from SNAICC - National Voice for our Children, that a
high proportion of First Nations families experiencing socio-economic disadvantage are still
unable to access ECEC services due to the complexity of the test.
By removing the activity test as a barrier to ECEC access for Aboriginal and Torres Strait
Islander families, the increased 'Aboriginal or Torres Strait Islander child result' is an
additional protective step to ensure that Aboriginal and Torres Strait Islander children are
given equal enjoyment or exercise of human rights and fundamental freedoms. Improved
affordability and access to subsidised quality ECEC is intended to address developmental
gaps identified in the AEDC. This supports Government progress against Target 4 under the
National Agreement on Closing the Gap (increase the proportion of First Nations children
assessed as developmentally on track in all five domains of the AEDC to 55 per cent, by
2031).
Therefore, this Bill can be considered a special measure under article 1(4) of the CERD that
does not constitute racial discrimination and promotes the right to equality and non-
discrimination, in particular on the basis of race. It is aimed at the purpose of achieving
substantive equality for Aboriginal and Torres Strait Islander children, and is necessary to
achieving that goal.
The Bill is compatible with the right in article 2(2) of the ICESCR and article 2 of the CERD
because it promotes the right to equality and non-discrimination on the basis of race.
Conclusion
The Bill is compatible with human rights because it promotes the protection of human
rights.
Minister for Education, the Hon Jason Clare MP
7
EARLY CHILDHOOD EDUCATION AND CARE (THREE DAY GUARANTEE) BILL 2025
NOTES ON CLAUSES
Clause 1: Short title
1. This is a formal provision specifying the short title of the Act, the Early Childhood
Education and Care (Three Day Guarantee) Act 2025 (the Act).
Clause 2: Commencement
2. The table in this clause sets out the commencement date for the Bill's provisions.
3. The Bill will commence on 1 January 2026 or the day after this Bill receives Royal
Assent, whichever is later.
Clause 3: Schedules
4. Clause 3, for the avoidance of doubt, provides that each Act that is specified in a
Schedule is amended or repealed as set out in that Schedule.
8
Schedule 1--Amendments
A New Tax System (Family Assistance) Act 1999
5. Schedule 2 to the A New Tax System (Family Assistance) Act 1999 (Family Assistance
Act) is used to calculate the amount of Child Care Subsidy (CCS) or Additional Child
Care Subsidy (ACCS) that an individual is entitled to. Currently, one element of this
calculation is the activity test which is used to determine the number of subsidised
Early Childhood Education and Care (ECEC) hours an individual is entitled to. The
activity test is based on the amount of activity (including paid work, study and
volunteering) the individual and the individual's partner do in a fortnight.
6. Schedule 1 to this Bill replaces the activity test with a 3 day guarantee and increased
hours of subsidised ECEC. The 3 day guarantee ensures that all individuals eligible for
CCS are entitled to a minimum of 72 hours of subsidised ECEC per fortnight. As it is
common in the ECEC sector to require individuals to book their child into care for 12
hour sessions, 72 hours per fortnight is equivalent to three days of subsidised ECEC
per week.
7. Currently, under the activity test, an individual could have an activity test result of
less than 72 hours, such as 0 hours, 24 hours, or 36 hours. Schedule 1 amends the
Family Assistance Act to establish the 3 day guarantee and remove references to an
entitlement to subsidised care that is lower than 72 hours. An individual engaged in
more than 48 hours of recognised participation types in the CCS fortnight will be
entitled to the 'increased hours result' of 100 hours. The Bill also guarantees that
individuals caring for an Aboriginal or Torres Strait Islander child are entitled to a
minimum of 100 hours of subsidised care per fortnight.
8. Schedule 1 also makes terminological changes to the Family Assistance Act and
Family Assistance Administration Act , such as substituting activity test result with
subsidised hours. These are solely terminological changes that are intended to reflect
the new policy settings of the 3 day guarantee. Under Schedule 1 all families are
entitled to 72 subsidised hours per fortnight, leaving only one higher entitlement
(100 hours) for individuals participating in more than 48 hours of work or study. To
reflect that engagement in activity is no longer a core component of the Act, or a
core determinator of families' subsidised hours, the terminology of the activity test
(including activity test result, activity, recognised activity result, deemed activity test
result, activity-tested amount, and adjusted activity-tested amount) has been
removed and replaced with terminology that aligns with the 3 day guarantee policy
settings.
9
Items 1, 4 5 and 9: Subsection 3(1)
9. Items 1, 4, 5 and 9 amend subsection 3(1) to insert various definitions for concepts
that are being introduced by this Bill. These new definitions are the 3 day guarantee,
deemed subsidised hours, the increased hours result, recognised participation type
and subsidised hours. The 3 day guarantee is established by new subclause 11(1A).
The new definitions of deemed subsidised hours, increased hours result, recognised
participation type and subsidised hours are solely terminological changes made to
align with 3 day guarantee policy settings and replace the terms deemed activity test
result, recognised activity result, recognised activity and activity test result.
Items 2,3, 6, 7 and 8: Subsection 3(1) (definition of activity test result); Subsection 3(1)
(definition of deemed activity test result); Subsection 3(1) (definition of low income result);
Subsection 3(1) (definition of recognised activity); Subsection 3(1) (definition of recognised
activity result)
10. Items 2, 3, 6, 7 and 8 repeal redundant definitions in subsection 3(1). As described
above, the terms activity test result, deemed activity test result, recognised activity
and recognised activity result have been replaced with terms that better align with
3 day guarantee policy settings. Item 6 removes the definition of low income result
because the minimum number of hours per fortnight of subsidised care under the
3 day guarantee is higher than the low income subsidised hours result of 24, making
the low income result redundant. The individuals that benefited from the low
income result will instead receive the higher guaranteed hours result of 72.
Items 10, 18, 19, 24, 28, 29, 30, , 31, 32, 34, 51, 52, and 53: Clause 1 of Schedule 2 (method
statement, step 1); Subparagraph 4(1)(a)(i) of Schedule 2; Subclause 4(2) of Schedule 2;
Clause 8 of Schedule 2 (method statement, step 1); Paragraph 10(1)(a) of Schedule 2;
Subclause 10(2) of Schedule 2; Part 5 of Schedule 2 (heading); Division 1 of Part 5 of
Schedule 2 (heading); Clause 11 of Schedule 2 (heading); Subclause 11(5) of Schedule 2;
Division 2 of Part 5 of Schedule 2 (heading); Clause 16 of Schedule 2 (heading); Subclause
16(1) of Schedule 2
11. These items amend various provisions of the Family Assistance Act to replace activity
test result with subsidised hours. An eligible individual's baseline subsidised hours
will either be 72 (the 3 day guarantee) or 100 hours per fortnight (the increased
hours result, or any other higher result found in the subclause 11(1B) table).
Item 11: Clause 1 of Schedule 2 (method statement, step 1)
12. Item 11 omits a redundant part of the method statement for working out CCS
entitlement that refers to what happens where the activity test result is zero. This is
10
because the introduction of the 3 day guarantee ensures that all families eligible for
CCS now receive a baseline entitlement of 72 subsidised hours, regardless of their
participation in work, study or other recognised participation types. Under the
previous arrangements, individuals with low or no recognised activity received
limited or no subsidy, which acted as a barrier to accessing ECEC. This amendment
removes the need for provisions related to a zero activity test result.
Items 12, 14, 16, 17, 21, 23, 25, 26, 27: Clause 1 of Schedule 2 (method statement, step 5,
paragraph (a)); Clause 1 of Schedule 2 (method statement, step 6); Clause 4 of Schedule 2
(heading); Subclause 4(1) of Schedule 2; Paragraph 4A(1)(a) of Schedule 2; Paragraphs
4A(2)(a) and (b) of Schedule 2; Clause 8 of Schedule 2 (method statement, steps 4 and 5);
Clause 10 of Schedule 2 (heading); Subclause 10(1) of Schedule 2
13. These items amend various provisions of the Family Assistance Act to replace
activity-tested amount with basic subsidy amount; and to replace activity-tested with
basic subsidy. These are solely terminological changes intended to align language
with the 3 day guarantee policy settings.
Items 13, 15, 20, 22: Clause 1 of Schedule 2 (method statement, step 5, paragraph (b));
Clause 1 of Schedule 2 (method statement, step 7); Clause 4A of Schedule 2 (heading);
Subclause 4A(2) of Schedule 2
14. These items amend various provisions of the Family Assistance Act to replace
activity-tested with subsidy and to replace adjusted activity-tested amount with
adjusted subsidy amount. These are solely terminological changes intended to align
language with the 3 day guarantee policy settings.
Item 33: Subclause 11(1) of Schedule 2
15. Item 33 repeals and substitutes subclause 11(1) of Schedule 2 to establish the 3 day
guarantee. New subclause 11(1) provides that for the purpose 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 for a CCS fortnight is the highest of the 3 day
guarantee, or any other result specified in the table in new subclause 11(1B) for the
amount that applies to the individual in relation to the child. The 3 day guarantee
result has not been included in the subclause 11(1B) table, to reflect the fact that the
72 hour result is a guaranteed baseline entitlement, with subclause 11(1B) defining
entitlements to additional hours.
16. New subclause 11(1) explains how the new subclause 11(1B) table is intended to be
read for the purpose of working out an amount of CCS or ACCS for an individual. An
individual's subsidised hours is the highest of the 3 day guarantee or any other result
specified in an item of the table in subclause 11(1B) for the amount that applies to
11
the individual in relation to the child. For example, an individual receiving ACCS (child
wellbeing), under Item 1, would be entitled to a 100 hour result for the purposes of
receiving ACCS (child wellbeing). An individual receiving CCS who is not entitled to an
increased hours result under Item 1, may be entitled to a Minister's rules result that
provides them a 100 hour result under Item 2, in which instance the higher result is
used. This means individuals receiving ACCS (child wellbeing), ACCS (temporary
financial hardship), and ACCS (grandparent) will continue to receive 100 subsidised
hours, as under the current policy settings. Individuals receiving ACCS (transition to
work) can receive the 3 day guarantee result of 72 hours (set out in new subclause
11(1A)), or the increased hours result (set out in new subclause 12(1)), depending on
their engagement in recognised participation types.
17. Item 33 also inserts a new subclause 11(1A) to define the 3 day guarantee as 72.
The 3 day guarantee provides eligible individuals with a baseline entitlement to 72
hours of subsidised care per fortnight. As it is common in the ECEC sector to require
individuals to book their child into care for 12 hour sessions, 72 hours per fortnight is
equivalent to 3 days of subsidised ECEC per week. However, an individual is not
required to use their entitlement of 72 hours per fortnight in this way. For example,
an individual might use 4 days in the first week of the CCS fortnight, meaning they
would have the equivalent of 2 days remaining in the second week of the fortnight.
18. An individual engaged in more than 48 hours of a recognised participation type in
the CCS fortnight will be entitled to an increased hours result of 100 (set out in new
subclause 12(1)). This is intended to recognise that individuals engaging in more than
48 hours of work or study may require additional subsidised hours.
19. If an individual is not engaged in more than 48 hours of a recognised participation
type in the CCS fortnight, they will be entitled to the higher of the 3 day guarantee or
any other result that applies to them.
Items 35, 42, 47: Clause 12 of Schedule 2 (heading); Subclause 12(4) of Schedule 2;
Subclause 12(7) of Schedule 2
20. These items amend various provisions of the Family Assistance Act to replace
recognised activity with increased hours. These are solely terminological changes
intended to align language with the 3 day guarantee policy settings.
Item 36: Subclause 12(1) of Schedule 2
21. Item 36 repeals and substitutes subclause 12(1) of Schedule 2. New subclause 12(1)
provides for an increased hours result, which 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. This is intended to recognise that individuals
12
engaging in more than 48 hours of work, study or other recognised participation
types may require additional subsidised hours.
Items 37, 38, 39, 41, 43, 44, 45, 46, 48: Subclause 12(2) of Schedule 2 (heading); Subclause
12(2) of Schedule 2; Paragraphs 12(2)(d) and (e) of Schedule 2; Subclause 12(4) of Schedule
2 (heading); Subclause 12(4) of Schedule 2; Paragraph 12(4)(a) of Schedule 2; Paragraphs
12(4)(a) and (b) of Schedule 2; Subclause 12(7) of Schedule 2 (heading); Subclause 12(7) of
Schedule 2
22. These items amend various provisions of the Family Assistance Act to replace
recognised activity with recognised participation type; and to replace references to
activity and activities with participation type and participation types. These are solely
terminological changes intended to align language with the 3 day guarantee policy
settings.
Item 40: Subclause 12(3) of Schedule 2
23. Item 40 repeals and substitutes subclause 12(3) of Schedule 2 to replace references
to associated activities with associated participation types. These are solely
terminological changes intended to align language with the 3 day guarantee policy
settings.
Item 49: Clause 13 of Schedule 2
24. Item 49 repeals the clause that dealt with the low income result because it is now an
obsolete concept. The intention of the low income result was to help low income
families engaging in lower levels of activity. The 3 day guarantee provides that all
families eligible for CCS (including a low income family) will now receive a baseline
entitlement of 72 hours per fortnight, making the low income result obsolete.
Item 50: Subclause 15A(1) of Schedule 2
25. Item 50 will increase the entitlement for an Aboriginal or Torres Strait Islander child
from 36 hours to 100 hours. The 3 day guarantee provides a baseline entitlement of
72 hours per fortnight for all families. Families caring for an Aboriginal or Torres
Strait Islander child will be entitled to a higher entitlement of 100 hours per
fortnight.
26. There is evidence that the activity test has a negative impact on Aboriginal and
Torres Strait Islander children and their participation in ECEC. The intention of this
amendment is to improve the affordability and accessibility of ECEC for families with
13
Aboriginal and Torres Strait Islander children, by providing an entitlement to a
minimum of 100 hours of subsidised care.
A New Tax System (Family Assistance) (Administration) Act 1999
Items 54, 55, 56 and 57: Subparagraphs 67CE(1)(b)(ii) and 105D(2)(a)(ii); Subparagraphs
105E(1)(c)(ii) and (3)(c)(ii); Paragraphs 108(5)(b) and 111(2A)(b); Paragraph 157(2)(k)
27. These items amend various provisions of the A New Tax System (Family Assistance)
(Administration) Act 1999 (Family Assistance Administration Act) to replace activity
test result with subsidised hours and activity with participation type. These are solely
terminological changes intended to align language with the 3 day guarantee policy
settings.
14
Schedule 2--Application provision and transitional rules
Item 1: Application of amendments
1. Item 1 is an application provision that provides that the Family Assistance Act and
Family Assistance Administration Act as amended by Schedule 1 of the Bill will apply
in relation to sessions of care provided to a child in a CCS fortnight that begins on or
after the day of commencement of this Act. This provision clarifies that the new
entitlement structure and related amendments will take effect for sessions of care
provided in the CCS fortnights beginning on or after the commencement date of the
Act. This ensures a clear transition point for families and providers, allowing them to
prepare for the new arrangements and avoid confusion regarding entitlement. What
was previously called the activity test result, and will be known as subsidised hours, is
an allotment of hours that can be used at any time during the CCS fortnight,
depending on what suits the individual. It is not practicable for a person's
entitlement to change midway through the CCS fortnight. Therefore, the application
provision ensures that the changes apply to sessions of care provided from the start
of the first CCS fortnight after commencement.
2. Item 1 also includes a transitional provision for the CCS fortnight in which the
commencement of the Bill occurs. For the purposes of applying the Family
Assistance Administration Act on or after the commencement of the Bill, in relation
to sessions of care provided to a child in a CCS fortnight that starts before the
commencement of the Bill, item 1 provides that a reference to subsidised hours is
taken to include a reference to an activity test result; and any reference to a
participation type is taken to include a reference to recognised activity. This is
necessary because when the Act commences, there will still be many entitlement
decisions calculated on the basis of an activity test result for which the affected
individual has review rights. Subitem 1(2) ensures that those reviews will still
operate as intended, despite the change in terminology.
Item 2: Transitional Provision
3. Item 2 is a technical provision that provides that any rules made under paragraph
12(2)(d), 12(3)(a) or (b) or 12(4)(a) or (b) of Schedule 2 to the Family Assistance Act
continue to be in force as if the rules were made under the relevant paragraph as
amended by this Bill. A similar provision applies to determinations made under
paragraph 11(3)(b), subclause 12(5) or paragraph 16(1)(c) of Schedule 2 to the
Family Assistance Act.
Item 3: Transitional rules
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4. Item 3 empowers the Minister to make transitional rules relating to amendments
made by Schedule 1. This power may be used to make rules prescribing matters of a
transitional nature (including prescribing any saving or application provisions).
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