An executive summary of the submission by Goodstart, obtained by The Australian, calls for a "mandatory redirection" of the childcare rebate from parents to providers.
The group also calls for increased investment to support the National Quality Standards as well as payment of professional wages.
The Australians reports that Goodstart says it strongly supports the reforms, but there is "no refuting" their introduction would continue to increase operating costs as they unfolded over the next four years.
It says the government needs to compensate centres for the reforms or accept that price rises will be passed on to parents, making fees skyrocket.
Last month, Julia Gillard conceded parents needed relief from rising childcare costs and is considering a shake-up of the system. Goodstart says funding needs to be simplified.
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