A bill empowering authorities to strip funding from childcare operators who fail to meet safety standards, among other measures, was this week fast-tracked during the first sitting of the 48th federal parliament.
Operators who fall down on quality, safety and compliance standards could be cut out of subsidies, which typically cover a large proportion of parents' fees, and also blocked from opening new centres.
Education Minister Jason Clare says he doesn't want to see funding removed and that the legislation should more compel providers to improve standards in the wake of recent abuse cases.
The crackdown is part of the government's promise to guarantee universal access to early education and while welcomed by parents and advocates, there are also calls for a national early-childhood commission to ensure consistent oversight and accountability.
Advocacy group For Parents has gone a step further, launching a petition calling on the government to provide equitable support for families who choose alternatives to centre-based care.
In an economy where most families need both parents to work, there should be more choice when it comes to childcare, says co-founder Cecelia Cobb.
"This is about giving families more freedom because the way that the subsidy currently works is that centre-based childcare is the only option many can afford," she told AAP.
"There is a huge potential for additional workplace participation, as lots of people delay going back to work until they can get into their preferred centre."
The childcare subsidy is predicted to exceed $16.2 billion in 2025/26 and helps families manage childcare costs but access and the amount depend on specific eligibility criteria.
Yet services such as BubbaDesk and CoWork Creche, which combine co-working spaces with flexible childcare, are not supported by the subsidy.
While the price per day is based on the average of local daycare centres, the lack of subsidy means many parents cannot afford to use the service.
"The demand is huge as traditional daycare doesn't always fit with people's needs," BubbaDesk founder Lauren Perrett said.
"When you become a parent, you wonder why close-proximity care hasn't been built into traditional office spaces - it's a no-brainer.
"Parents are delaying their return to work and considering not returning at all because they don't feel their kids are safe in out-of-home care and the instinct is to keep our babies close."
Illawarra-based mum Jenna Bush placed her baby girl Grace on multiple childcare waitlists when she was born but received few placement offers.
The one place she was offered and toured gave her the "ick" and she could not bring herself to enrol Grace there.
Instead, she started using BubbaDesk as she was able to work remotely from the co-working space.
"Being in close proximity and having that contact to her throughout the day gives me that peace of mind," she said.
"But financially, even though I can claim some of the co-working part through tax, reducing that fortnightly payment would be really helpful if the subsidy was expanded."
Liberal senator Maria Kovacic is among those backing the For Parents petition.
She says it's not about "tearing down" formal childcare centres.
"Expanding the subsidy in the way these families are calling for would not only deliver flexibility," she told parliament on Wednesday.
"It would (also) begin to recognise in a tangible way the value of informal care and the unpaid labour that holds up our economy and our communities."
