A further 22 people accused of being part of an elaborate family day care fraud have been charged in Sydney - including mothers who allegedly provided details of their children to the syndicate.
Detectives initially charged 17 people in May over their links to an allegedly fake business called Red Roses Family Day Care. A Fairy Meadow home, which allegedly masqueraded as a childcare centre, was also raided in May.
It was alleged the illegitimate company raked in about $4 million in rebates in ten months by exploiting the federal government's childcare subsidy scheme.
Seven women and one man were charged on Tuesday.
Another 16 women were arrested in Sydney's southwest on Thursday morning with 14 of them - all mothers - later charged with participating in a criminal group.
Police will allege in court that the women provided the personal details of their children and knowingly participated in activities associated with making fraudulent claims.
NSW Police Minister David Elliott on Thursday said the government would consider changing legislation to close loopholes if the police recommended it.
"There's no lower act than somebody taking money fraudulently from the taxpayers of the state that should have been going towards the education and welfare of our children," Mr Elliott said.
"If you're a parent who has taken some sort of inducement to provide your child's name to assist in this fraudulent activity, assume that police will arrest, charge and convict you."
Acting Assistant Commissioner Stuart Smith said more arrests were expected.
"Our objective is to completely dismantle the business model which we know is being used by at least 100 other syndicates with an estimated potential value of the fraud across Sydney at least $750 million per year," he said in a statement.
Red Roses Family Day Care looked like a legitimate business operating out of multiple sites in Sydney and Wollongong.
It said it provided "safe, nurturing and loving" care to more than 450 children but police allege there were no real children, just photographs of them.
"Every part of it from the bottom to the top was a falsehood," Mr Smith told reporters on Thursday.
Police in May revealed some 150 parents who claimed they had between three and seven children in care claimed rebates.