Ruth Harper feels the weight of an entire community on her shoulders.

She runs a not-for-profit childcare centre that has been serving the inner-Melbourne suburb of Fitzroy continuously since the 1970s.

But the city's stage 4 lockdown appears likely to cost the East West Childcare Association $15,000 in lost revenue.

It will survive the next six-weeks, but if a child or staff member tests positive for COVID-19, the community-run centre will be pushed to the brink of financial collapse.

"Forty years' worth of hard work and fundraising and saving would be gone," Ms Harper said.

"It would be terrible … it makes me cry just thinking about it."

She says the Federal Government's support package for Victorian operators will be a huge relief for many centres — just not ones like hers.

The Education Minister Dan Tehan this week announced a boost to payments to centres to keep them afloat.

Parents will also be able to keep their children at home without the risk of losing government subsidies when they return.

But to keep parents in the system, the Government is urging providers to waive the out-of-pocket fees they charge families.

In inner-city areas, where many parents have well-paying jobs, those out-of-pocket fees can represent a huge percentage of a childcare operator's income.

This dilemma is also facing the Dawson Street Child Care Co-operative in neighbouring Brunswick.

With only the kids of permitted workers and vulnerable children able to attend during lockdown, the centre's Iwandee Suvanmani says "it's just not viable for us to be open".

"If we are waiving that gap fee, it's going to impact us significantly," she said.

"Those gap fees are very significant for us."

She says management will probably be forced to cut shifts for casual staff.

"Financially, it's going to be a big hit for educators."

Mr Tehan said extra help would be available for centres that are heavily reliant on out-of-pocket fees and experience major falls in attendance.

"We understand the importance of looking after those services," Mr Tehan said.

"On average [across Melbourne] services will get revenue of between 80 to 85 per cent of what they were getting in the pre-COVID-19 period."

Victoria University education policy researcher Kate Noble said "the sector will be able to make ends meet".

'Very sad and overwhelmed'

Childcare attendance nationwide is less than 10 per cent below pre-coronavirus levels, according to industry sources.

But the Commonwealth's free childcare scheme, introduced early in the pandemic, ended last month.

And the early education sector believes many families will soon consider whether they can afford to keep sending their kids.

"It will tend to take a couple of billing cycles, and maybe a month, for families to really sort of sit down and understand what the implications are of reduced income, for example," Ms Noble said.

Brisbane single mother Natalie Raffenot has two children attending preschool, including a five-year-old son who lives with autism.

She lost her university job earlier in the pandemic and is soon likely to reduce the number of days they attend from four days per week to two.

"That's going to reduce his progress with getting ready for school next year," Ms Raffenot said.

"I feel like I'm failing him as a parent, to be honest.

"I can't control the fact that he's not getting that help that he needs, even though I'm trying every different avenue.

"So I feel very sad and overwhelmed."