Parents face child care plan delay

Parents hoping to get a planned new government childcare subsidy will have to wait a year longer.

Child care and early education are shaping up as election issues, with both major parties announcing offers. Source: AAP

The federal government has delayed until 2018 the start date of its $3 billion childcare package unveiled in last year's budget.

That's because the savings it will need to pay for it - cuts to the parental payments of those on family tax benefit part B - remain stalled in parliament.

The subsidy, which will require parents to undertake at least eight hours of work a fortnight to qualify, was originally due to start on July 1, 2017.

While Tuesday's budget papers confirmed the delay, there is good news for parents facing difficulty getting their kids into mainstream childcare centres.

The government has extended the timeline for its nanny pilot program, and raised the hourly fee cap from $7 to $10.