The federal government yesterday announced an early childhood education and care package to support the sector and provide one million Australian families with free childcare.

Bendigo childcare providers earlier this week warned of sector collapse without government intervention.

Providers said yesterday's announcement provided certainty for workers and options for families.

The government also flagged efforts to introduce new entitlements for workers, which leaders in the Bendigo business sector said could make all the difference for employers and their staff.

Changes had already been made in three of the 121 modern awards - those covering clerks, restaurants and hospitality - to enable greater flexibility in their roles and their arrangements for annual leave.

Work was underway to introduce two weeks of unpaid pandemic leave and to effectively double the availability of annual leave, at half pay, in more than 100 other awards.

Combined with the $130-billion Job Keeper initiative the federal government announced on Monday, Bendigo business leaders said positive change was on the horizon for many employers and employees facing difficult decisions.

The measures were intended to be temporary, to see the country through the health and economic crises triggered by the spread of COVID-19.

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