The Albanese government is considering changes to the activity test to increase access to childcare subsidies, but fears removing it altogether risks creating another “free for all” like the National Disability Insurance Scheme.

Despite recent public warnings by Treasurer Jim Chalmers that revenue from resources is dropping faster than expected, and that the government needs to tighten its belt, he and his colleagues are being inundated with structural spending demands amounting to tens of billions of dollars.