Childcare subsidies lack oversight: audit

The government hasn't yet set up proper oversight of its year-old childcare subsidy, an audit has found.

The auditor-general also says there needs to be a stronger and more consistent focus on the policy reasons for the $37 billion package - namely, boosting workforce participation.

But overall, it says the education department did a good job of designing the new childcare subsidy arrangements and making sure families and childcare providers moved onto them smoothly.