There are calls to subsidise 95 per cent of childcare as Australia contemplates the path out of recession.

It would cost $5.4 billion a year but KPMG insists it would stimulate the economy up to $7.4 billion per year.

Chief Executive Women President Sue Morphet told Ben Fordham there are great benefits to this proposal.

“The one option that I think they should look at is for all families up to $80,000 income, their childcare is subsidised to 95 per cent and then after that a very gentle taper off to a base of 30 per cent.

“This is an investment in families.”

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