Parents are being urged to sign up to the federal government's new childcare system or face having their payments abruptly cut from next month.
Childcare advocates warn thousands of families yet to update their details could be left with a big bill once the changes are rolled out next week.
For young mum Catherine Pitt, taking her one-year-old daughter Peyton to childcare means she can work and study.
But given it costs well over $100 a day, she can only afford it three days a week. The 22-year-old is hoping that upcoming changes to the childcare system will help her get back into full-time work sooner.
From the 2nd of July, there will no longer be a cap for the childcare rebate for families earning less than $185,000 a year.
For families earning more, the cap will increase to $10,000.
As for how much the government subsidy will cover, low-income families, will be able to get back as much as 85 per cent of the cost of care.
For those on middle incomes, it will be half the cost and for those on high incomes, 20 per cent or nothing.
Families are not automatically registered for the new scheme.
Education Minister Simon Birmingham says it's crucial people sign up before next month.
Early Childhood Australia CEO Samantha Page warns those who don't, will face having their payments cut altogether. She says the new activity test is too tough, particularly for casual workers.
The test requires both parents to prove they work, study or volunteer for at least eight hours a fortnight to receive their subsidy, although families with a combined income of less than $67,000 will be exempt.
Labor's Early Childhood Education spokeswoman, Amanda Rishworth, fears many parents still don't fully understand the changes.
Parents can register for the new childcare system on the myGov website.
