More than 1000 licensed clubs can fill the childcare shortfall by opening childcare centres on their premises in exchange for tax breaks on gambling profits, the poker machine lobby says.

Clubs Australia executive director Anthony Ball has written a submission to the Productivity Commission's childcare inquiry, urging it to consider the clubs offer as a "credible solution".

"Not-for-profit clubs are well positioned to deliver affordable access to childcare," Mr Ball wrote. "The industry's extensive community networks, sizeable facilities, geographic footprint and capital expenditure programs ensures that clubs can help fill service gaps where demand is most acute."

A report commissioned by the organisation's NSW arm estimated a third of 4000 clubs in Australia that pay income tax would diversify into childcare as their "primary purpose" if they could get a tax exemption for providing social services.

The report said the nation's "reservoir of need" for social services also included aged care and suggested clubs were well-placed to help meet the demand of an ageing population.