From January 1, 2016, all children will have to be fully immunised for their parents to get childcare fee subsidies and family tax benefits.
The only exemptions allowed will be for medical reasons.
The government anticipates it will save $508 million over four years from this new "no jab no pay" policy.
However, it plans to give a $26 million boost to help doctors identify and vaccinate children whose immunisations are overdue.
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