A major shake-up of Australia's childcare system is on the cards, with Social Services Minister Scott Morrison flagging a cap on daily rebates and work tests to qualify for them.
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Prime Minister Tony Abbott isexpected to outline proposed changes in a speech at the National Press Club on Monday, including potentially scrapping his signature paid parental leave policy.
However, it is yet to be revealed whether the government would also scrap the 1.5 per cent levy it planned to impose on Australia's 3000 biggest businesses to pay for the parental leave scheme.
Childcare groups on Sunday called for "every former [paid parental leave] dollar" to be directed towards childcare.
Mr Morrison discussed potential changes in an interview with News Limited papers. However, he has not made any official announcements.
A spokesman said the government's policy was still being developed.
In the interview, Mr Morrison likened the childcare rebate, which covers half the daily cost of childcare up to an annual maximum of $7500, to the First Home Owner Grant.
He said the rebate had inflated childcare costs, yet failed to increase the number of women returning to work.
"What I am frustrated about is we've spent all this money, the costs are rising, we've actually made it more expensive and we're not getting what it's for," he was quoted as saying.
Potential changes include introducing a daily cap on rebates, rather than paying half of what the centre charges, and paying the rebate directly to centre operators.
He was also considering introducing work tests so that only working women could access the rebate.
However, low income and disadvantaged families should still get access to early childhood education, and there were no plans to change rules such as staffing ratios, he said.
Community Child Care Co-operative NSW chief executive Leanne Gibbs said: "We see every dollar of the former [parental leave] funding as precious and we hope the government does too."
Converting the parental leave funding and overhauling the system were "evidence the government had listened to the sector", she said.
The president of the Australian Childcare Alliance, which represents the private sector, Gwynn Bridge, said she met the minister recently and found him receptive to industry concerns.
"We are quietly confident that he is determined to fix [childcare] and will go to great lengths to make sure it is affordable for families," Ms Bridge said.
Meanwhile, Australian Chamber of Commerce and Industry chief executive Kate Carnell said her members had never liked the proposed levy on big businesses and would not like to see it redirected to fund childcare.
"We are very pleased for the scheme to be scrapped, and if it is scrapped, it is important the 1.5 per cent levy is scrapped as well," Ms Carnell said.
