Minister for Social Services Scott Morrison made the announcement on Friday to postpone the changes, which were designed to stop what’s referred to as “child-swapping”, where educators care for each other’s children so both can claim payments.

The decision came just four days before the law was supposed to come into effect on February 3.

Gerogery family day care educator Liz Villiers finished her office job on Friday because of the original plan.

However, she said the decision was “better late than never”.

“Friday was supposed to be my last day, I had said my goodbyes and everything and then about an hour later Family Day Care Australia called me to tell me about the decision,” she said.

“I was in absolute shock, I think a lot of pressure and legitimate impact, which was more far reaching than they thought it would be, are probably what changed his mind.

“I think it’s a very good result for family day care and I’m glad the minister is now happy to open the conversation to the industry to find a better solution to the fraudulent behaviour.”

The new “child-swapping rule” would have prevented family day care educators from using alternative day care services for their own children on the days they themselves provide care.

Both family day care educators and the industry’s peak body, Family Day Care Australia, spoke out against the original changes on the basis the industry was not consulted.

They were also concerned the new law would unfairly disadvantage rural and remote services and those people who were doing the right thing.

Mr Morrison said he was still committed to stamping out people who rort the system.

Family Day Care Australia chief executive Carla Northam said the minister was to be applauded for putting a halt to the legislation.

“Family Day Care Australia welcomes the opp-ortunity provided by the minister,” she said.