ACT students will no longer need to undergo a competency test before taking part in school swimming carnivals.

The ACT Government came under fire last year for introducing the rule.

It is now relaxing its swimming policy to provide more clarity for schools.

"Part of school summer is about going to the swimming carnival so we've based this revised policy on encouraging participation, so having all students in schools encouraged to go along and be part of that day," Education Minister Joy Burch said.

"So swimming carnivals are structured activities and there's no longer the burden of the proficiency test."

But she says the test will stay in place for 'unstructured' activities such as free swimming and water play.

"We're making it as easy as possible because we don't want to put an unfair burden, we want to encourage participation, we want to encourage our students to learn how to swim because it really is quite a critical, vital life skill," she said.