Australia's new childcare rebate

THE NEW CHILDCARE REBATE

* The old yearly cap on childcare rebates is scrapped, along with the means-tested Child Care Benefit

* Replaced with one rebate with no yearly cap

* It means parents can pick up an extra shift without worrying all their pay will go to covering childcare

* Households earning more than $187,000 a year will have a $10,000 cap

* Families earning more than $350,000 get no subsidies

* To be eligible, parents need to work, study or volunteer at least eight hours a fortnight

* Government says the majority of families will be better, off but Labor says some families on low incomes will miss out due to the activity test

* Childcare providers who hike fees will be held to account

* New system started on Monday