Among the things the government wants to do are cap the hourly rate childcare centres can charge in an attempt to do something about fees.
It would also remove the cap on the childcare rebate as an incentive to parents to work more.
It has made some changes to its original package after early childhood experts argued it would make it more difficult for vulnerable children to attend childcare and early learning centres.
There is also some movement on the issue of paid parental leave which turned into a bit of a disaster last year when the government belatedly realised it was about to change paid parental leave for people who were already pregnant (which would have made it the only policy to apply retrospectively).
Government provided parental leave will be increased from 18 weeks to 20 weeks which is great for people whose employers do not provide any parental leave. But it's still not great for people who do have employer provided parental leave who will not be able to take both schemes (as it currently the way).
It is, Social Services Minister Christian Porter explained, all about "rebalancing".
Mr Turnbull made the comments at a childcare centre in Canberra which, naturally, provided the backdrop for his announcement about a compromise deal the government has extended to get its childcare changes through the Senate.
The government has been taking a lot of heat for promising to do something about childcare ever since the government came into office in 2013 - and yet delivering nothing.
This is because the changes it wants to introduce are stuck in the Senate which is because it wants to pay for the childcare package by cutting family tax benefits.
Yes, I know, someone should have checked the sign the PM is standing in front of.
Guys, we've talked about this before.
Mr Turnbull says "the honourable thing for Cory to do is to resign from the Senate and then run again at the next election as an independent or under his new party".
Mr Turnbull says the government will try and work with him as a member of the crossbench.
He is asked whether he tried to persuade Senator Bernardi to remain inside the Coalition camp: "Look, I've spoken to Cory Bernardi on a number of occasions but if a person wishes to leave a political party, plans to leave a political party, then normal practice and courtesy would suggest that they would talk to the leader about it."
Prime Minister Malcolm Turnbull is holding a press conference at a childcare centre (more about the reason for that later).
He has been asked about the defection of Cory Bernardi and offers his first comments on the matter.
"Cory Bernardi should resign from the Senate," Mr Turnbull says.
"He's talked about the importance of keeping faith with the electorate. The Liberal Party of South Australia and the people of South Australia only seven months ago elected him to the Senate for a six year term as a Liberal senator."
Good morning and welcome to the day in politics.
Andrew Meares, Alex Ellinghausen and I are here to take you through the day's events.
It's a pleasure to have your company.
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