The co-president of the Playcentre Federation says the organisation is struggling to survive.
Fifteen of the country's 483 playcentres - which are run by parents rather than by paid teachers - have closed in the past two years.
Maureen Woodhams told Nine to Noon on Monday that parents find the Government's early-childhood education regulations time-consuming.
"The intentions are to provide a safe environment for children, but sometimes it just gets beyond common sense, it gets ridiculous.
"There are silly examples like having to note down sleep times for children, even if their parents are in the building or possibly holding them in their arms."
Ms Woodhams says the federation is reconsidering the way it works to ensure playcentres are viable.
