Education Minister Dan Tehan has announced the end of fee-free childcare for Australian families.
The childcare relief package will end on July 12, Mr Tehan said, restoring the old model that combines government subsidies and fees from families.
He said Australia's success at containing COVID-19 had sent people back to work and school, causing demand for childcare spots to rebound.
"The system was designed for when demand was falling, now we are seeing demand increase. And we think we have got the balance right," Mr Tehan said.
"Services are keen to expand their offering to support more families."
From July 13, the old child care subsidy will be reintroduced. The government will also put in place transition measures to protect centres and families whose incomes have been harmed.
The government will provide extra government funding through the shift back to the old model. The government will also alter the work activity test for eligible parents to help them afford fees.
From July 20, centres will also lose access to the JobKeeper wage subsidy.
You can watch the announcement below: