Childcare payments have been merged into a single subsidy as of Monday, which is means tested and reliant on both parents working, studying, volunteering or searching for work at least eight hours a fortnight. 

Under the changes, households with a total annual income under $186,958 will no longer face a cap on the amount of rebate paid by to them each year.

For those earning more than this, the annual cap will lift from $7500 to a little more than $10,000 per child.

The changes have also affected the way funds are paid to councils for childcare administration. 

Council spokesman Nick Redmond said to cover the change, the council’s budget had included an increase of $4 a day, from $96 to $100 per child for the council’s three childcare centres.

“Letters have been sent to parents keeping them informed about the fee increases – this increase reflects CPI plus an estimate of the recovery needed of resources and training for centres,” he said.

“Apart from a few teething problems as people get used to a new system, the feedback from parents suggests that, after the fee increase, many parents will be better off under the new arrangements.”