Prime Minister Tony Abbott says his government will seriously consider any Productivity Commission recommendation to help more parents hire nannies.
A 50 per cent rebate is already available for family day care providers who look after children in the childcare worker's home, but the same worker employed in the family home is considered a nanny and therefore not eligible.
Mr Abbott says the Productivity Commission is considering subsidies for in-home care as part of its childcare inquiry.
"This is one of the issues that we've asked the Productivity Commission to look at," Mr Abbott told reporters in Sydney on Sunday.
"It is something that is happening to some extent under the existing system, but obviously we want to make the system as flexible and as accessible as possible.
"Let's let's see what the productivity commission comes up with."
The commission is due to hand up its final report to government at the end of October.