Dan Tehan
Education Minister Dan Tehan (Image: AAP/James Ross)

Last month the federal government ended its free childcare scheme, under which parents paid no fees and the government paid childcare centres 50% of the hourly rate cap.

Education minister Dan Tehan says the package had succeeded in keeping services “open and viable”.

He boasted that 99.3% of 13,400 childcare services were still operating on July 1 and the government would pay operators a transition payment of 25% of their fee revenue until September 27.