The peak body representing childcare services in NSW says the federal government has struck a good balance between those who can and those who cannot afford childcare services.
From July 13, parents will return to paying their usual fees to childcare providers - consistent with the pre-pandemic fee structure.
Service providers are also facing another hurdle with JobKeeper payments to the sector to be removed from next week - July 20.
But NSW CEO of the Australian Childcare Alliance Chiang Lim says the government has the balance right.
"Those impacted by the pandemic can still access a childcare subsidy - the additional childcare subsidy," he said.
"For those who are can still meet their childcare commitments, they will have access to the federal government subsidy of up to 85 per cent.
"The relaxing of testing around accessing the subsidy will also help parents.
"We think the government may have struck a good balance on this."
Mr Lim said while the fee-free structure was in place, providers were still forced to pay for costs involved in providing the care to children.
He said JobKeeper did help but did not fully cover all costs.
Australian Childcare Alliance represents some 1600 childcare services across NSW.
Lake Cathie Cowarra Park Preschool and Long Day Care director Tracy Coman echoed Mr Lim's comments and said support is still available for families who need it the most, in light of the economic impact of the COVID-19 pandemic.
Mrs Coman said the centre didn't experience many families taking their children out of the service when the pandemic hit, due to the government providing the free childcare scheme at the right time.
"The sector was quite lucky because the government threw a safety net out pretty much to us first," she said.
Mrs Coman said even though the government's free childcare scheme has ended, help is still available for families who have been impacted financially.
"We have informed our parents about the support which is out there," she said.
The COVID-19 pandemic did not impact on the number of children attending the centre.
"Our attendance rates are the same if not better than pre-COVID-19 time," Mrs Coman said.
Wauchope's TG's Early Learning general manager Gayle Kee says the end of the fee-free period did have some impact on their five business units.
"We did have a handful of families across our five services who reduced their days with us," she said.
"I know for some services it (the end of the fee-free period) will impact because families can't afford the fees, mainly due to changes in employment or reduced hours.
"For us, we were very fortunate that our centres have remained close to full occupancy.
"As a business, we are way better off not having JobKeeper and just having the childcare subsidy in place."
Mrs Kee added that the entire childcare subsidy system needs an overhaul.
She described the current system as "just too complicated" for many families to understand and work through.