Labor says a poor take-up rate and high hourly rates show a taxpayer-subsidised trial of nannies is not a solution to childcare woes.
Just 60 families are getting subsidies in a trial that started in January, government officials told a Senate committee earlier in May.
Another 30 nannies are lined up for a start.
Families with nannies are paying them an average of $35 an hour, using between 20-25 hours a week.
"Clearly that is more than most families earn in an hour and that's not the solution for them," Labor's early childhood spokeswoman Kate Ellis told ABC TV on Sunday.
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Under the trial families receive a subsidy of between $5-$8.50 an hour per child.
"It's a pretty clear example yet again of just how out of touch the government are that they expect that this program is going to help your average family when families are being asked to pay $35 an hour for a nanny," Ms Ellis said.
Some 2900 families registered their interest in the trial but government officials say it has taken a long time to match families with nannies because of differing needs.
The pilot program was extended in the recent federal budget and will now run until June 2018.
