February 13, 2025  

CEW has hailed the federal government’s three-day childcare guarantee as a game-changing step in addressing one of Australia's most pressing cost-of-living challenges and a key barrier to women's workforce participation — the critical catalyst for economic growth. 

From January next year, families will receive at least 72 hours of subsidised childcare each fortnight, regardless of work or study status, with First Nations families benefiting from 100 hours per fortnight. 

With childcare the second biggest cost-of-living pressure on young families after housing, CEW has long championed for the reforms. 

CEW chief executive Lisa Annese said the changes would ease financial pressures on families while removing a major barrier preventing women from working more hours or re-entering the workforce. 

“264,000 women with children under five currently cite childcare as their main barrier to workforce participation. Prohibitive childcare costs force too many women into a choice between work and care, and this is smart, strategic policy that will deliver long-term economic dividends,” she said. 

“Deloitte has reported that increasing women's working hours by 2 per cent would add $11 billion to Australia's GDP. If we are serious about Australia’s economic future, we must prioritise women’s workforce participation. Making early learning more accessible gives families options, supports businesses struggling with labour shortages, and grows the economy.” 

The reforms remove the Child Care Subsidy Activity Test, which CEW has advocated for due to the unnecessary search costs it placed on low-income families. The test does not account for casual and uncertain hours of work, creating barriers for families who were concerned about risk of incurring debts with Centrelink. 

“This is a proud moment for Australia. Investing in early childhood education is not just about fairness—it’s about unleashing potential and driving prosperity for all. The government has taken a decisive step toward unlocking women’s workforce participation, boosting productivity, supporting families with cost-of-living pressures, and giving our children the best start in life,” Ms Annese said. 

ENDS 

CEW Media Contact:  

Jesse McCarthy-Price 
jesse@cew.org.au 
0429 160 550