Childcare is shaping up as another pre-election battleground with the Coalition indicating it will not support the abolition of the activity test that requires parents to have a job, look for work or study in return for receiving the taxpayer-funded subsidy.

Announcing the first part of what is likely to be a substantial increase in spending on childcare support, Anthony Albanese said the activity test would be removed for three days a week starting on January 1, 2026.