Victorian Premier Denis Napthine has shut down a suggestion that licensed clubs could provide childcare in exchange for tax breaks.
He said the Victorian coalition government would be "very dubious" about licensed clubs offering childcare services.
"I think that's fraught with a lot of danger," Dr Napthine told reporters on Sunday.
His comments followed a submission to the Productivity Commission childcare inquiry that licensed venues could "come to the rescue" if they could get income tax exemptions on poker machine profits.
Clubs Australia boss Anthony Ball said in the submission not-for-profit clubs are well positioned to deliver affordable access to child care.
The group's NSW branch commissioned a report that claimed a third of 4000 clubs would be keen to diversify into childcare services if they could get income tax exemptions on poker machine profits.
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