1. Purpose

The purpose of this document is to provide an overview of the Additional Targeted Equity Loading (ATEL) program and outline the program’s objectives, activities, expected outcomes, reporting and evaluation approach.

The Director, Equity and Inclusion at the NSW Department of Education (the department) is the decision maker, and the department is the primary agency responsible, for administering the 2025 Additional Targeted Equity Loading program.

These guidelines form part of any funding agreement with successful services and may be amended or replaced by the department from time to time.

The purpose of this program is to provide funding to community and mobile preschools to deliver activities that support increased inclusion and participation in early childhood education and care (ECEC) for eligible cohorts.

2. Program context

ATEL is part of the NSW Government’s commitment to increasing investment in ECEC and ensuring all children have access to quality ECEC. This program strengthens support available to services to meet the diverse needs of children in NSW in the 2 years before school.

3. Program description

3.1 Description

ATEL provides funding to services for children aged 3 years and above and families from targeted equity cohorts to improve participation and inclusion in preschool.

ATEL supports children aged 3 years and above in eligible cohorts and builds the capacity of services to be inclusion ready.

4. Program overview

4.1 Principles

The guiding principles informing ATEL are:

• accessible: ECEC services are equipped with the resourcing and skills to engage children from eligible cohorts and their families in ECEC.
• inclusive: Children and families participating in ECEC feel accepted, welcome, safe and that their child’s needs are understood and met.
• equitable: Children and families from eligible cohorts are supported by services to participate in ECEC.
• evidence-based: The program has been established based on the evidence that children who participate in a quality preschool education program for at least 600 hours in the year before school are more likely to arrive at school equipped with social, cognitive, and emotional skills they need to engage in learning.

4.2 Program logic

An ATEL program logic has been developed to show the relationship between the program activities and its intended outcomes to support continuous quality improvement in the delivery of ECEC services to eligible cohorts.

The ATEL program logic is attached in Section 15. Appendix.

4.3 ATEL and Start Strong for Community Preschools

ATEL is provided to services which are eligible for Start Strong for Community Preschools or the Mobile Preschool Funding program. ATEL provides funding based on equity criteria where the loading is not already being provided through Start Strong for Community Preschools or the Mobile Preschool Funding program. ATEL is in addition to funding received under these programs.

5. Program eligibility

5.1 Service eligibility

To be eligible for funding, services must meet all the following criteria:

• Be a community or mobile preschool eligible for and receiving funding under Start Strong for Community Preschools program or the Mobile Preschool Funding program in 2025.
• Be an approved ECEC service under the Education and Care Services National Law Act 2010 (National Law) and Education and Care Services National Regulations.
• Accept the 2026 Early Childhood Education Funding Agreement Terms and Conditions (Terms and Conditions) in the ECEC Digital Hub Funding Management System (or as otherwise advised by the department).
• Have submitted a representative fortnight of data from a period in 2024 in response to the annual preschool census or an ad hoc submission made before the census representative fortnight period.

5.2 Child eligibility

Funding is calculated using information submitted by preschools in response to the 2024 preschool census or an ad hoc submission made before the census representative fortnight period.

To be eligible for ATEL funding, a service must have had a child who is at least 3 years old enrolled on or before 31 July 2025 (the child must have a birthdate on, or before, 31 July 2022) and

• enrolled in a community or mobile preschool that has a 2021 SEIFA decile 1 or 2 (IRSD, SA2, NSW Ranking), and meets at least one ATEL eligible cohorts
• enrolled in a community or mobile preschool with any SEIFA decile and meet 2 or more of the ATEL eligible cohorts.

ATEL eligible cohorts are:

• children who identify as Aboriginal and/or Torres Strait Islander
• children from a Language Background other than English who require English Language Assistance (ELA)
• children with disability or additional needs
• children from a low-income household.

The department does not take citizenship and residency status into consideration to determine eligibility of children for funding under the ATEL program.

6. Program activities

6.1 Spending rules and activities

ATEL funding is to be used by services to benefit children from the eligible cohorts listed in Section 5.2. Child eligibility and increase eligible children’s inclusion and participation in ECEC, for example:

• additional funding to reduce fees after all Start Strong fee relief funds (excluding any reserved fee relief not being claimed by an enrolled child) allocated to the service have been exhausted and/or
• inclusive education and/or inclusion readiness activities, such as through:
  • salaries and wages
  • educational resources including reducing and/or eliminating indirect costs of attending the ECEC service for eligible children
  • other operating costs: These are expenses that go beyond staff salaries and educational resources. They can include rental and license costs, maintenance, upgrades to and cleaning of the facility, utility expenses, professional development, language or cultural programs, technology or software costs, accounting, and audit expenses, etc.
  • activities that support child and family engagement and which increase participation such as community outreach activities to build positive relationships with families and increase parental awareness of the benefits of ECEC.

Funds should not be used for the creation/establishment of segregated spaces/areas for children with disability or additional needs.

ATEL funds must be spent by 30 June 2026.

Funding cannot support initiatives already completed or existing. Funding can be used to extend existing initiatives.

Eligible services are not to increase the cost of daily fees or other costs to offset the benefit of ATEL.

6.2 Rules related to funding to reduce fees

Services can expend ATEL funds at their discretion within the requirements of the spending rules. Where ATEL is used to reduce fees, it can only be applied after all Start Strong Fee Relief funds allocated to the service (excluding any reserved fee relief not being claimed by an enrolled child) have been exhausted. Services can also use ATEL funding to offset other costs such as enrolment and excursion costs.

Services must communicate fee reductions to families through regular invoices and statements or use other means if invoices or statements are not available. Funding to reduce fees should also be included in annual financial accountability reporting. See Section 9: Financial reporting and data collection.

6.3 Key dates

*Dates are indicative only and provided to assist providers with their planning. These dates may be subject to change. Any change will be updated in the program guidelines.

** Further ATEL payments may be made in 2026 to eligible services that accept the 2026 Terms and Conditions. This is at the discretion of the department.

7. Funding model

ATEL will be delivered directly to services. Funds will be delivered via the Early Childhood Contracts Management System (ECCMS). ATEL is based on eligibility criteria and does not require an application.

If services are not registered as a user on ECCMS, the department will provide information on how to register. Services are advised to contact the department for more information. See Section 10. Enquiries for the department contact details.

8. Roles and responsibilities

Providers must accept the Terms and Conditions in the ECEC Digital Hub prior to receipt of funding. These Terms and Conditions set out annual accountability and compliance requirements. Providers are required to certify that funds have been spent in accordance with the Terms and Conditions. The department will manage the coordination of the program and reporting.

9. Financial reporting and data collection

9.1 Financial reporting requirements

In accordance with the funding agreement a provider must submit a financial accountability statement for each individual service which has received funding, to provide assurance that public funds have been expended for their intended purpose.

Financial accountability is completed through ECCMS, and providers will be notified when this is due. Further information is available in the Financial Accountability Return Guide and on the Financial Accountability – Information for Services page.

9.2 Refunds and surplus funds

Providers are required to spend all ATEL funding in accordance with the spending rules during the relevant program period (See Section 6. Program activities).

Some providers may have unspent funds (unexpended funds) at the end of their reporting period, and this needs to be returned to the department in accordance with the Terms and Conditions. The department will identify and review unspent funds through the annual financial accountability process.

The financial accountability process for the 2026 funding allocation will be undertaken in 2027. The process involves completing a financial accountability statement to report to the department how funding has been spent in accordance with the spending rules of these guidelines.

Financial accountability statements are completed at service level. Providers with unspent funds may be contacted by the department requiring repayment of funds.

9.3 Data collection

Reporting and data collection provides the department with the information required to ensure ATEL funds are used to deliver the program’s activities and measure whether the program is achieving intended outcomes.

Providers are required to comply with the department reporting and data collection requirements as specified in the Funding Agreement, including the collection and recording of client information and participant consent obtained through the consent and declaration forms for the 2025 Start Strong program. Providers must have systems in place to allow them to meet data collection and reporting obligations as part of the acquittal process in the calendar year after the funding is provided.

10. Enquiries

The program management team for ATEL can be contacted via the Early Childhood Education Information and Enquiries team for any questions, feedback, or complaints:

• Phone: 1800 619 113
• Email: ecec.funding@det.nsw.edu.au

11. Review period

The department will review ATEL and assess the programs outcomes, activities and delivery to identify opportunities for continuous improvement. If required, these guidelines will be reviewed and updated at the end of the calendar year in which the funding is delivered in alignment with Section 9.1. Financial reporting requirements. Providers should comply with the version of the guidelines published on the department’s website.

12. Evaluation

The department will evaluate ATEL in accordance with the Treasury Policy & Guidelines: Evaluation and the mandatory requirements for evaluation.

The department may undertake other activities to understand the effectiveness of ATEL funding. Providers may be requested to participate in an evaluation of the program through the provision of data and participation in other evaluation activities as required including those outlined in Section 9. Financial reporting and data collection.

Further details about evaluation can be provided by contacting the program management team at ecec.funding@det.nsw.edu.au.

13. Notified standards and policies

All contracted providers must comply with all relevant provisions in the Government Sector Audit Act 1983 No 152 - NSW Legislation, the Government Information (Public Access) Act 2009 No 52 - NSW Legislation, and the Privacy and Personal Information Act 1998. Compliance with any other legislation referenced in the program’s Funding Agreement instrument(s) is also required.

14. Funding calculations

ATEL provides funding to services for children aged 3 years old and above and families from targeted equity cohorts.

To be eligible for ATEL funding, a service must have had a child who is at least 3 years old enrolled on or before 31 July 2025 (the child must have a birthdate on, or before, 31 July 2022) and

• enrolled in a community or mobile preschool that has a 2021 SEIFA decile 1 or 2 (IRSD, SA2, NSW Ranking), and meets at least one ATEL eligible cohorts
• enrolled in a community or mobile preschool with any SEIFA decile and meet 2 or more of the ATEL eligible cohorts

The funding per ATEL eligibility criteria met is $605. The information below outlines different scenarios which attract an ATEL payment.

In 2025, a funding floor of $1,000 has been applied for services eligible for only one ATEL eligibility criteria amount across all enrolled children.

Scenario 1

A community preschool located in SEIFA Decile 1, has one child enrolled. This child is with a disability or additional needs and also receives English Language Assistance as a child from a language background other than English. This child would be receiving no additional equity loading under Start Strong for Community Preschool as the service is located in a SEIFA Decile 1 and already receiving the highest funding rate per child enrolled.

Scenario 2

A community preschool in a SEIFA Decile 4 has 3 children enrolled, eligible for equity loadings under the Start Strong for Community Preschool program. These three children all identify as Aboriginal and Torres Strait Islander and also have a disability or additional needs.

Scenario 3

A community preschool located in a SEIFA Decile 4, has one child enrolled. This child has a disability or additional needs and receives English language assistance. This child would be receiving equity loading under the Start Strong for Community Preschool program. The service has no other children eligible for ATEL.

14.1 Indexation

The department will make decisions on the application of indexation to funding rates on an annual basis. If indexation is applied, the department will be guided by NSW Treasury-determined rates. The department will communicate any changes to the funding rates arising from indexation via email to providers (for example, via the funding notification letter).

15. Appendix

Download the ATEL program logic (PDF 118 KB).