Hundreds of thousands of Australian families could be hit with a surprise tax bill as the government begins reviewing their income.
The Department of Human Services is set to check families' actual incomes against the estimated income they entered into the myGov website in July 2018, The Age and The Sydney Morning Herald report.
Childcare providers believe that about a third of the 1.1 million families receiving the childcare subsidy will be hit with tax charges from July 29.
Early Childhood Australia chief executive Samantha Page said the new system is confusing and the costs could lead to children being pulled out of early learning.
"There is a degree of uncertainty for families that is not comfortable," she told the newspapers.
A department spokesperson said rebalancing was a normal process and a range of repayment options would be available, adding that some families could receive a tax return.