The Early Childhood Council says centres need more government funding to pay senior teachers appropriately.
The council is taking the government to court over the early learning pay parity scheme, designed to bring the pay of its teachers to the same level as kindergarten teachers.
Chief executive Simon Laube says community and private centres cannot afford to lift the pay grades themselves.
Laube says childcare is a public service and the public funding needs to increase to keep fees affordable.
He says the pay parity scheme would likely disproportionately affect smaller centres and may force many to go under.