More than 60,000 families ran out of childcare support with a month to go before the end of the financial year.
Almost a million families have made the switch to a new rebate system that will scrap a rebate cap for most families from July 2.
Up to 200,000 families still need to make the switch in order to avoid the $7613 cap on support for those earning below $187,000.
"I've got a three-year-old and a one-year-old and I know how critical it is to have affordable and flexible childcare," cabinet minister Kelly O'Dwyer told reporters in Canberra on Thursday.
"We are also making it easier, particularly for women, who have often borne the brunt of childcare responsibilities to be able to increase their participation in the workforce."
The cap will be wiped for those below the income threshold and lifted to just over $10,000 for those on higher incomes.
More than 5000 families maxed out support just six months into this financial year.
63,000 families reached the limit by the beginning of June, the majority being in NSW and Victoria.
"A whole new world with a much better, fairer childcare subsidy is just around the corner to help Australian families," Education Minister Simon Birmingham said.
The cap has the biggest impact in NSW where more than 26,000 families had reached it by June, while 270 families had hit the limit in Tasmania.
New means testing changes in the new system mean low-income earners receive up to an 85 per cent subsidy for childcare costs, compared with 72 per cent previously.
It's expected up to 230,000 families will increase their workforce participation, whether increasing work hours or going back to work, as a result of the changes.
Senator Birmingham expects families will be on average $1300 a year better off under the changes to the rebate structure.
Up to 200,000 families who have received childcare subsidies in the last 12 months haven't made the switch by updating their details on myGov but will have a three-month transition period to sign up.
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NUMBER OF FAMILIES WHO MET THE CHILDCARE CAP:
January - 5611
February - 13,066
March - 23,154
April - 34,253
May - 49,691
June - 63,180
Australian Associated Press
