Non-profit childcare providers have pushed back against the NSW government's plan to triple maximum penalties for breaching regulations, arguing the reforms would drive workers out of the sector.

The legislation introduced to parliament this month would raise penalties for individual staff members to $34,200 and create a new offence of subjecting a child to inappropriate conduct.

Lisa Gibson, a general manager at Goodstart Early Learning, told a parliamentary inquiry on Friday she was concerned the heavier fines would make it harder to attract and retain staff.

"We risk losing more good people from early childhood education to schools or elsewhere,"

Ms Gibson said.

Big Fat Smile chief executive officer Kim Bertino was worried the raising of penalties would constrain the sector's abili

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