The Minns Labor Government is continuing to reshape the early learning sector and provide more affordable access for families across the state, with a $1.8 billion investment as part of the 2026-27 NSW Budget.
Building on the nation-leading regulatory reform passed in October 2025, the Minns Labor Government will continue its work to lower fees, expand access to not-for-profit preschools for families with three -year-old children, and lift standards to give working families access to quality care.
The Minns Labor Government is already doubling the number of public preschools across the state, providing 9,000 children with a quality early childhood education in the year before school.
All 100 preschools have planning approval, 95 are under construction, and two are already opened and operating. All will be fully operational by early 2027.
As part of the Minns Labor Government's commitment to co-locate early learning on all new public primary schools, in addition to the partnership with the Commonwealth Government's Building Early Education Fund, eleven additional public school sites are included in this Budget.
During their 12 years in government, the Liberals and Nationals failed to build a single new public early learning service. Under their watch, the growth of private for-profit providers exploded, and this was accompanied by some of the worst quality outcomes and highest breach rates in the early learning sector.
Alongside co-located early learning on new school builds, not-for-profit preschool funding in NSW will be reformed. For the first time, the Minns Labor Government will provide full funding for both three-year-old and four-year-old children in not-for-profit preschools.
The new Universal Preschool Funding program and Fee Relief for Long Day Care will replace the outdated, Covid-era Start Strong program, and will fully fund the operating costs of not-for-profit preschools, conditional on services meeting strict quality standards. The program will also include a mandatory pay increase for early childhood staff from the beginning of 2027.
The new funding system will ensure not-for-profit preschools can operate fee-free and are fully funded in line with the staffing levels of NSW public preschools. Public preschools have the highest proportion of services rated 'exceeding' or 'excellent' in NSW. The new system includes some additional resources for not-for-profit preschools, recognising that they operate as stand-alone services.
For services that choose to charge out-of-pocket costs for children in their care, so they can offer additional resources, those costs will be capped at $20 per day. If a service currently charges more than $20 in out-of-pocket costs per day, those costs will be frozen at that current rate.
Universal Preschool Funding will also include funding for three days a week for three-year-old and four-year-old children in priority cohorts. These changes will ensure funding is ongoing, sustainable, fairer, based on need, and more consistent for families.
Complementing this, a major reform to the Disability Inclusion Program for not-for-profit preschools will increase support for children with disability and additional needs by up to 25 per cent, raising the maximum funded days per week to three, ensuring greater access and tailored early learning support.
The Expanding Quality Access program, which assists preschool services to offer longer hours and cater for more children, and includes a wages uplift, will continue, with applications open until 30 November 2026.
Completing the package, the Budget provides $39.5 million over four years to extend Brighter Beginnings, a program focusing on lifting child development outcomes by delivering targeted support from birth through to kindergarten.
To ensure early learning meets the needs of families, the Minns Labor Government has already legislated to strengthen the regulation of the sector, introducing tough new laws to enhance child safety, lift quality standards, and improve transparency.
The state's new regulator, the NSW Early Learning Commission, was established last year and is acting to lift quality standards, strengthen oversight, and restore confidence for families.
The Minns Labor Government's early learning investment in the 2026-27 NSW Budget ensures working families can access the best start in life for their children, regardless of their postcode.
Deputy Premier of New South Wales and Minister for Education and Early Learning Prue Car said:
"The Minns Labor Government is delivering early education reform for families across NSW, ensuring every child gets the best start in life regardless of where they live.
"We've listened to educators and families as we've worked to reform the sector's funding model, tying investment to fair award wages and actual operating costs.
"The Minns Labor Government is working to build a sustainable sector and ensure resources are directed to where they're needed the most.
"With construction on our 100 public preschools well underway, the Minns Labor Government is continuing our work to deliver the most comprehensive reform of early childhood education in the history of NSW."
