They supported one proposal to combine childcare payments into one means-tested benefit scheme.

The proposals were made yesterday in a draft Productivity Commission report on its inquiry into Child Care and Early Childhood Learning. The report drew mixed reaction on different proposals locally and nationally.

Dubbo Family Day Care service manager Chriss Cronin said the report was a step in the right direction for the child care industry, but further review was necessary.

"They've looked at (the industry) very thoroughly," she said.

"It will be interesting to see how much stays and how much goes."

Dr Wendy Craik, presiding commissioner at the Productivity Commission, said recommendations in the draft report "seek to make childcare more affordable, flexible and accessible. Furthermore they will provide a framework for a more financially sustainable childcare system for taxpayers into the future."

The report suggested combining the childcare benefit and the childcare rebate with a single subsidy paid directly to the parents' choice provider.

The proposal would provide low income families who earned $60,000 or less a year a 90 per cent reimbursement of their childcare fees.

This would taper down to 30 per cent for families who earned $300,000 or more.

Ms Jena Glover, director of the Stepping Stones child care centre, is a mother and an industry professional.

She said recommendations like that were important for getting women back into the workforce.

"Making childcare more affordable is the most important thing for working parents," she said.

Ms Cronin said the proposed system would be much easier to use and understand.

"The system at the moment is very confusing for parents in regards to what they will receive; the early learning subsidy is much easier to understand," she said.

"It reduces the cost to families, so that week by week they're not having to find the money and wait for the government to reimburse them."

The report also recommended government funding for nannies or even grandparents who looked after their grandchildren.

The funding would only be given to those with a Certificate III in Early Childhood Education.

Ms Glover said grandparents should be reimbursed for the time taken out of retirement. Their involvement could be beneficial to children.

"Families are the most important thing in children's lives," she said.

"I definitely think grandparents should be paid for what they do."

But, Ms Cronin said such services were already provided by family day care educators and gave children early interaction with peers.

"It's very important to socialise at a young age. You can tell the difference between kids that have socialised and kids that haven't when they start school," she said.

"They find it hard to make friends. It makes a huge difference."

The report also suggested more support for disadvantaged children.

Ms Glover and Ms Melissa Cox, a Certificate III room supervisor at Playmates College, said the idea was fantastic.

They also backed the report's recommendation to fix the childcare system but to leave the paid parental leave scheme as it is.

"Paid parental leave is quite fair and reasonable as is and more focus needs to be on fixing child care; making it more available and more affordable," Ms Cox said.

"If child care is more affordable then we may not need paid parental leave."

Ms Glover said she believed paid parental leave had become better over the years.

"The money should go into child care and leave paid parental leave as is," she said.

The commission has called for public submissions on the draft recommendations. It is due to hand its final report to the federal government in October.