Labor says 1.2 million families to benefit from childcare subsidies in $9b budget boost

But critics say government is unlikely to scrap activity test, which reduces payments when one parent works less than 15 hours a week

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The Albanese government’s first full-year budget will contain $9bn more in childcare subsidies over four years than the Coalition’s last, but advocates fear calls for abolition of the activity test have not been heard.

The treasurer, Jim Chalmers, and ministers for early childhood and education released figures on Tuesday showing that 1.2 million families will benefit from increased childcare subsidies as the government fends off criticism that it is not doing enough to combat rising cost of living.

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