The Early Childhood Council says the Government's FamilyBoost rebate for pre-school education will be a relief for many parents, but describes it as more of a tax cut.
From October, households earning no more than $180,000 can apply to be partially refunded for early childhood care costs.
How much each family receives depends on how much they earn - the maximum rebate is $75 per week.
Early Childhood Council chief executive Simon Laube spoke to Ingrid Hipkiss.