The Minns Labor Government is reforming early learning funding to link state investment to quality standards and direct it to areas most in need of better access to affordable, quality preschool.
As part of its ongoing reforms to the early childhood sector the Minns Government is introducing changes to its $900 million Start Strong preschool program, which forms part of a record $2 billion investment in Early Childhood Education and Care.
To ensure services receiving government funding provide the highest quality care, changes to Start Strong guidelines from 2026 will require services not meeting the National Quality Standard to lift their rating or risk loss of funding.
State government funding will be weighted towards services in regional and remote areas, and many areas that are currently undersupplied.
These reforms are the latest step in a suite of measures the Minns Government is taking to improve compliance with quality standards in the early learning sector in NSW, following our nation-leading legislation that passed NSW Parliament last week and is now law.
The changes work hand-in-hand with the NSW Early Childhood Education and Care Regulatory Authority's policy requiring approved providers to act immediately to address quality concerns.
Under this policy, the regulator can compel approved providers to take immediate action to address quality concerns. Those unwilling or unable to improve will face loss of funding, enforcement action, including possible suspension or removal from the sector.
These changes are consistent with the Commonwealth's direction to suspend funding for services failing to meet national standards, particularly in relation to child safety and quality.
The Start Strong funding program is part of the Minns Labor Government's commitment to ensure every child in NSW has access to 600 hours of quality preschool education before starting school. This investment also includes:
- More than $60 million to support children with high learning support needs.
- Up to $15 million for the 2026 Start Strong Pathways program that funds place-based initiatives to provide early educational supports for children prior to preschool enrolment and supports engagement with families.
In addition to Start Strong funding, early learning services will benefit from further NSW Government programs, including:
- $100 million to help community preschools expand their hours and cater for more children through the Expanding Quality Access Program.
- More than $7.5 million to increase participation in the Health and Development Check in Early Childhood Education and Care program.
- Up to $7 million in additional targeted equity funding for community and mobile preschools.
- $20 million for The Flexible Initiatives Trial which provides grants to services to test and trial new options for families - including extended operating hours or flexible pick-up and drop-off times.
- $5 million to support the viability and sustainability of small and stand-alone Early Childhood Education and Care providers through the Building Capability Development Program.
- $20 million for the Building Early Learning Places program to assist not-for-profit providers looking to create more spaces for children aged 0-6 in communities with the greatest need.
To support workforce supply and quality over the coming years, the NSW Government is also investing up to:
- $27 million for the Early Childhood Education and Care Scholarship program to help 2,000 more aspiring and existing Early Education and Care professionals advance their careers in early learning.
- $7 million to support more than 400 early childhood educators to turn their diplomas into degrees with university partners delivering the Early Learning Diploma to Degree program.
- $10 million to provide fee-free professional learning courses for more than 4,000 ECEC professionals, in partnership with TAFE NSW.
Acting Minister for Education and Early Learning Courtney Houssos said:
"We're introducing important changes for childhood education and care services in NSW to lift standards and improve access to quality preschool education in areas where it's needed most.
"The Minns Labor Government is committed to ensuring early learning services in NSW provide the highest standards for our youngest learners and that every dollar of funding directly benefits families who need it most.
"While most early learning services provide excellent care, providers who are underperforming will be required to take swift action to lift their quality standards, or risk losing their funding.
"These changes are the latest step the Minns Labor Government is taking to ensure children in NSW have access to safe and quality early learning and care, as we work to rebuild trust in the sector."
