The Australian Childcare Alliance (ACA) has called on the Gillard Government to deliver meaningful child care reforms in the May Budget claiming that the sector needs help to deal with the financial burdens imposed by the requirements of the National Quality Framework.

In a submission to government the ACA claims costs have increased by 22 per cent in the last two years and says that if the government doesn’t lend a hand child care services will be forced to increase costs further.

"Without an immediate injection of funds to cover these costs, parents will either be forced to reduce hours of care and reduce hours of work or seek to place their child in unregulated and unsafe backyard care," the submission says.

The ACA also calls for an increase in the CCB and says the government should pledge to never means test the child care rebate claiming it would have a devastating impact on working families and the economy.

"This subsidy was, and should always be, intended as a tool to encourage mothers back into the workforce. It is not welfare…" says the submission.

The ACA also argues that the child care rebate cap should be increased from $7,500 to $8,100 and that it should be paid directly to child care providers rather than parents.

"This single option will halve the cost of long-day child care to parents at the hip pocket and ensure centres are not left struggling with non-payers. It is cost-neutral to the government. Providing choice of payment was welcomed but it has also led to confusion for parents," the ACA says in the submission.

In an effort to address the child care staffing crisis the ACA also suggests that the regional and rural program to entice 3000 graduates into the industry by 2014 should be turned into a national initiative through the introduction of a bonded-HECS scheme.