Means testing is both inefficient, inherently discriminatory (albeit towards a more privileged group), creates edge conditions that cause weird side effects, and is simply unnecessary. It also creates a sense of stigmatism around accessing the support _and_ creates division with the people who pay for it.
Give the subsidies to everyone with kids. Pay for it with taxes.
As a rule – whenever you discourage higher-income people from using a service, the service immediately gets worse. Be it public transport, public education, public housing — if you can encourage wealthy taxpayers to use the service _it will be better for everyone_.
https://www.abc.net.au/news/2026-11-15/jacqui-lambie-childcare-subsidy-cuts/107387182