A dire shortage of qualified workers is leading to thousands of kids being turned away from childcare.
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Hundreds of centres were forced to cap enrolments earlier this year due to staffing problems, according to a survey of Australian Childcare Alliance members.
In February, two-thirds of the 627 centres surveyed had to cap enrolments, while a second survey of 442 centres over one week in March showed more than half had to restrict spots.
The earlier survey equated to the equivalent of 16,300 childcare places being limited for families.
Alliance president Paul Mondo said at least 10,000 trained early childhood educators and teachers were urgently needed to fill vacancies.
"We simply do not have enough people to meet the demand for early learning and care, whilst also remaining compliant with the educator-ratios put in place to ensure the safety and wellbeing of children and staff alike," he said.
Childcare workers are the first group to push for higher wages under federal multi-employer bargaining laws, which allow workers from different businesses to join together to challenge for higher wages.
The alliance has backed an application for multi-employer bargaining which would allow its members, the United Workers Union and the federal government to negotiate wages.
Capping enrolments was a last-resort option for childcare centres, according to Tasmania's Glen Dhu Children's Services director Mel Reid-Prewer.
"Centres are desperate to be able to provide a vital service to children and families and keep their businesses viable," she said.
"They're very torn ethically by having to do this, to cut off enrolments and opening hours, early collection - but we have to prioritise quality over quantity. It's incredibly challenging."
Australian Associated Press
