Sebastopol Early Education Centre predominantly cares for some of the community's most vulnerable and at-risk children. Most of the centre's families had been eligible for 85 to 100 per cent childcare subsidies before the pandemic.

The government's childcare relief package offered free childcare to all parents, offering a 50 per cent subsidy per child with centres to cover remaining expenses. This system was designed to keep childcare across the nation afloat when demand was falling amid COVID-19.

For a not-for-profit like Sebastopol Early Education Centre, this has instead meant running care at a significant loss. It remains unclear how Education Minister Dan Tehan's announcement this week to end the childcare relief package might further impact the centre.

The centre's director Jo Corliss said the free childcare had been great support for families in tough times but hard for a small centre to absorb. Staff were ineligible for the government's JobKeeper payments, because the centre did not have the funds to top-up staff pay until reimbursed.

"We're a not-for-profit-based centre so we're always vulnerable any way...We want the community to know we're here and doing what we can to support our community," Ms Corliss said.

"We want our community to be aware of the impacts on childcare centres too."

This comes amid a boom in childcare centres.

Sebastopol's Brady Bunch Early Learning Centre told The Courier this week it was opening a second franchise near Delacombe Town Centre to meet the rapid growth in demand from nearby estates.

Brady Bunch opened in Sebastopol about two years ago and within 12 months its 110 places were full with 42 staff onsite. The Delacombe centre is planned for a similar capacity.

Sebastopol Early Learning Centre in Vickers Street was purpose-built by council about 30 years ago. It has a maximum of 44 places with nine staff, including a cook and kindergarten teacher.

The centre is one of a few kindergartens in Ballarat funded to run a bush kinder program.

Children had also been actively involved in programs at the neighbouring senior citizens centre and Sebastopol Library before the pandemic.

Ms Corliss said the centre had taken on new children during the pandemic and had been trying to absorb these costs as best it could.

She said the experience had been like "flying by the seat of our pants" to adapt and keep the centre's doors open.

The federal government's childcare relief package will end on July 12 and parents will go back to the previous fee system, which depends on income.

Minister Tehan said demand for childcare had risen back to 75 per cent of pre-crisis levels. He said there would be a transition period for childcare centres from July 12 with providers to receive 25 per cent of revenue they had before the hit.

Sebastopol Early Childcare Centre is exploring its options, including a special circumstances grant and tax support.

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