Price gouging by childcare centres will be restrained under planned federal government changes to the childcare rebate.
Senior Liberal Arthur Sinodinos said in the past parents were directly subsidised for childcare, but this coincided with an increase in daily fees.
The new plan, which has not yet been finalised, aims to constrain centres from hiking up daily charges, Senator Sinodinos said.
"We are putting some processes in place to also constrain price increases," he told Sky News on Sunday.
His comments come after a News Corp report that families earning a combined income of over $230,000 will pay more for childcare.
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They will also face cuts to the childcare rebate from 50 per cent to 30 per cent, while increased assistance will be given to help low and middle-income families.
Education Minister Simon Birmingham said he was making no apologies for working out ways to help low and middle income earners so they can work and increase their hours.
But the detail of any changes to the original package had not yet been finalised.
"Average Australian families who work, study or volunteer will be significantly better off under these reforms," Senator Birmingham said in a statement on Sunday.
Labor's childcare spokeswoman Kate Ellis said 21 months and three ministers after launching a Productivity Commission review, the Liberals still can't tell Australian families what is happening with their childcare changes.
"The Liberals promised more affordable and accessible childcare, but so far all they have delivered is confusion," Ms Ellis said in a statement.
