A blitz on dodgy day care providers has saved Australian taxpayers almost $1 billion in six months.
More than 150 providers been suspended or shut down after doctoring paperwork, exaggerating the hours of care of claiming subsidies for "invisible" children.
"The Turnbull government has a zero-tolerance to those family day care providers who game the system," Education Minister Simon Birmingham said.
"Parents should have confidence they are entrusting the care of their children to high quality and reputable providers and that taxpayer funds are being spent on legitimate services."
More than $2.4 billion of taxpayer money has been stopped from going to family day care fraudsters since 2014.
Sixteen people have been convicted or criminal offences and another 12 are before the courts.
The latest squeeze on day care shonks comes less than two weeks out from a new child care subsidy starting on July 2.
"We're targeting subsidies to families working the most and families earning the least, scrapping the annual rebate cap for most families as well as introducing an hourly fee cap to keep downward pressure on fee increases" Senator Birmingham said.
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