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Nanny trial will be scaled down

AAP logoAAP 19/12/2016

The federal government is drastically scaling back its trial subsidies of nanny fees after underwhelming interest in the scheme.

The number of places will be cut from 3000 to just 500, with applications to take part closing from January 1, saving the government $170 million over two years, it revealed in Monday's mid-year budget update.

In October government officials said there were fewer than 200 families using the service that started in January.

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