The Federal Childcare Minister has hit back at claims parents are facing a blow-out in childcare fees.
South Australia's childcare industry has warned parents could pay $30 more per day under proposed new regulations.
The changes backed by both the Federal and State Governments will require childcare centres to hire more staff and increase training from 2016.
The industry says the South Australian Government has also dishonoured a pledge to delay the most expensive aspects of the changes until 2020.
Childcare SA President Kerry Mahony says childcare centres will have no option but to pass on increased costs to parents.
"The caring ratio will go from one to ten to one to five which, as you can imagine, will double the cost of care," he said.
"Labour or staffing is the major factor of the cost of childcare, frankly. It's about 70 per cent of the cost."
Mr Mahony says the changes could put some childcare centres under threat.
"There is an overriding concern that affordability is not being supported with these reforms," he said.
"We think particularly it's tough on disadvantaged and financially struggling families.
"Our overheads are best covered in a childcare centre when the places are full but if the numbers start to go down I do fear for viability."
Federal Childcare Minister Kate Ellis says rises in fees are likely but will be on nothing like the scale suggested by the industry.
She says the planned changes will be subject to review and has dismissed claims parents will no longer be able to afford childcare as 'nonsense'.
"In reality, people are getting more assistance, they're spending less of their disposable income on their childcare fees and we've seen a huge increase in the number of children using care," she said.
"It's really important that we don't scare people off using childcare, or indeed having children, because they're worried about how they're going to be able to afford it, by only telling half of the story."
Ms Ellis says the Government has made childcare more affordable by increasing the childcare rebate from 30 to 50 per cent, capped at $7500.
"When people talk about fees of $100 a day as was quoted this morning I think, one, it's important to recognise that at the moment the average daily fee sits at $67 per day but also that parents are entitled to 50 per cent of that through the childcare rebate."
Ms Ellis says the affect of changes to the childcare industry on daily fees has been examined in independent modelling.
"Access Economics did substantial work on that and actually came back saying the maximum average national increase would be around $8.67 a day," she said.
"There is a full review of all of these changes, of how it's panning out, of what the impact's going to be that will take place in 2014."
Call for review
South Australian Liberal MP Martin Hamilton-Smith wants a parliamentary select committee set-up in State Parliament to examine the issue.
Mr Hamilton-Smith, who is also a former Secretary of the Australian Confederation of Childcare, says the childcare sector is becoming overregulated.
"With childcare costs heading towards $100 a day, that's $500 per week for just one child," he said.
"It's easy to understand why women in particular are having to leave the workforce or make the very tough decision of having to put their child into unregulated care with extended friends or family [or] neighbours.
"The balance must be right between regulation and red tape: standards on the one hand and affordability on the other and there's no point having a childcare sector that no one can afford to use."