Key Updates

Cost escalation has been applied, and the new funding rate for the 2026 calendar year is $27.57 per hour for the equivalent of up to 600 hours of support per year.

1. Purpose and objectives

These program guidelines (guidelines) provide an overview of the 2026 High Learning Support Needs (HLSN) funding program. The HLSN funding program provides funding and support to enable children with disability or additional needs in not-for-profit community and mobile preschools (community preschools) to participate in a quality early childhood education program on the same basis as their peers. Additionally, the HLSN funding program supports quality uplift and ensures children have access to high quality early childhood education programs that drive improved outcomes.

This document forms part of the 2026 Funding Agreement with Approved Funded Providers (providers) that is entered into with the NSW Department of Education (department).

Funding for children with high learning support needs is provided for community preschools to develop and deliver each child’s individual learning plan (ILP). The ILP supports the child’s specific learning requirements to enable participation in an educational program on the same basis as their peers. HLSN funding must be used to increase the adult to child ratio and/or funding for completion of other activities directly related to the development, delivery and review of the child’s ILP. See Section. 9 Individual learning plan (ILPs) for further information on ILPs.

The source agency for the funding is the department. The HLSN funding program is one of four related department grants under the Disability and Inclusion Program.

These guidelines may be amended or replaced by the department from time to time. Community preschool providers must comply with the current version of the guidelines

2. Eligibility criteria

2.1 Service eligibility criteria

The eligibility criteria for HLSN funding may be categorised into two components: service eligibility criteria, and child eligibility criteria. Both must be satisfied in all cases, to be eligible for funding. The department reserves the right to pause or cease funding to any service if the eligibility criteria are no longer met.

HLSN funding is only available for not-for-profit community preschools who are receiving funding under the NSW Start Strong for Community Preschools or the Mobile Preschool Funding Program.

The department will not provide HLSN funding for places/hours in a service that are Child Care Subsidy approved. Inclusion funding and support for children in places/hours that are Child Care Subsidy approved may be available from the Australian Government’s Inclusion Support Program.

2.2. Child eligibility criteria

• In addition, to be eligible for the community preschool to obtain HLSN funding to support the inclusion of individual children, a child must: either:
  • be at least 3 years old on or before 31 July in that preschool year and not in compulsory schooling, including homeschooling (see the NSW Education Enrolment Policy for further information about school enrolment); or
  • turn 3 years old after 31 July in that preschool year and demonstrate exceptional circumstances. Exceptional circumstances are like or related to the following circumstances: any child or family that experiences out-of-home or alternative care arrangements, isolation, violence, trauma, mental health issues, environmental disasters or other crises; and

• have high learning support needs as defined in these guidelines, namely, the child must:
  • have constant and ongoing support needs and require significant adjustments, or a temporary illness or injury that requires short term adjustment, to enable participation in the educational program on the same basis as their peers; and
  • require an ILP that identifies individual goals and the specific teaching strategies and adjustments required to enable participation in the education program on the same basis as their peers; and
  • require consistent support and guidance to engage at the same level as their peers.

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

All applications will be considered by the department assessing against the above eligibility criteria, on a case-by-case basis. See Section 4.4 Types of Evidence / applications below for requirements for evidence in support of an application and assessment criteria.

3. Funding

3.1 Funding rate

Community preschools can apply for funding for a child with high learning support needs up to a total of $16,542 (ex GST) per child per year. This funding is provided at a rate of $27.57 (ex GST) per hour for the equivalent of up to 600 hours of support per child per year. Funding may be granted on an annual or quarterly basis.

Enrolment decisions about individual children, including decisions about enrolment hours, are not determined by the department or this program. Enrolment decisions are the responsibility of the community preschool in consultation with families.

The program value is approximately $60 million to $75 million (ex GST).

3.2 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.

3.3 Provisional prepayment of Quarter 1 2026 HLSN funding

Eligible providers may opt in for a provisional prepayment of Quarter 1 2026 HLSN funding. A provisional prepayment is available for community preschools with children who were eligible for annual HLSN funding in Quarter 4 2025, are identified as returning to the community preschool in 2026 and who continue to have constant and ongoing high learning support needs and meet the 2026 HLSN program eligibility criteria.

Providers will still need to submit an individual application for 2026 HLSN funding for attending children for Quarters 1 or 2 2026.

The department will contact eligible providers to notify them of the opportunity to opt in for a provisional prepayment by 31 October 2025. The opt in process is voluntary. The department will provide eligible providers with an opt-in application form to confirm continuing children. Providers are required to submit their completed opt in application form by 14 November 2025. To receive the provisional pre-payment, providers must also sign the 2026 Early Childhood Education Funding Agreement Terms and Conditions (Terms and Conditions) in Early Childhood Contract Management System (ECCMS), or, if advised by the department, the ECEC Digital Hub. Opt-in application forms do not need to be returned if there are no continuing children, or if eligible providers choose not to opt-in.

The application outcome date and provisional prepayment will be made outside of the regular quarterly payment schedule and will occur by 24 December 2025. The provisional prepayment will be calculated, and funding will be provided based on the number of support hours to be requested for continuing children for Quarter 1 2026. Subsequent payments/adjustments for these applications will then return to the normal 2026 quarterly payment schedule. See Section 5. Application opening, closing and outcome dates for application cut-off and payment schedule.

Any provisional prepayments received in December 2025 will be offset against payments made for Quarters 1 to 3, 2026. Any provisional prepayment made for a child who does not return in 2026, or who is assessed as ineligible for 2026 HLSN funding, will be offset against HLSN funding for other children if applicable or will be required to be returned to the department as part of Quarter 3 2026 adjustments or refunds. The department will contact providers regarding any return of funding required.

Please note: Providers will still need to submit an individual HLSN application for 2026 HLSN funding for attending children for Quarters 1 or 2 2026. The submission of an opt-in application form, nor payment by the department to a provider does not replace an individual child application.

3.3.1 Assessment criteria for Provisional Prepayment

The department will individually assess all opt-in form applications against the eligibility criteria and requirements related to provisional prepayment, that is:

• The number of support hours requested for each child, who was eligible for annual HLSN funding in Quarter 4 2025 and are indicated as returning in 2026, have been provided.
• The declaration has been completed, to:
  • confirm that the service provider intends to submit an individual HLSN application in ECCMS for each child indicated in the form as returning in 2026, and
  • confirm the service provider will sign the 2026 Early Childhood Education Funding Agreement Terms and Conditions (Terms and Conditions).

4. How to apply

4.1 Applications

All applications and variations to applications are made on a per child basis in ECCMS. Applications and variations to applications can only be made by staff members of the community preschool or the service provider. See Section 4.6 for further information on variations.

Where a child attends more than one community preschool, each community preschool can apply for funding.

HLSN applications must only be made for the hours of support that the community preschool can spend in accordance with the program spending rules in Section 7. Spending rules below. Please note the requirement to identify in the application form whether support hours are to increase the adult to child ratio and/or to complete other activities directly related to the development, delivery and review of the child’s ILP. Information provided as part of funding applications may be used by the department for the purpose of assessing eligibility of a community preschool and/or child for future funding for similar programs to the 2026 HLSN in subsequent years.

The department encourages community preschools to regularly review the details of their primary and alternate contacts listed in ECCMS.

See Section 10. Application support for information about how the Sector Capacity Building (SCB) providers can help community preschool staff apply for HLSN funding.

4.1.1 Newly enrolled/previously unfunded children

Applications should be made when the community preschool has an understanding of:

• the child’s learning, development and wellbeing; and
• the adjustments required to support the child to participate in the preschool program on the same basis as their peers.

4.1.2 Simplified applications for continuing children

A simplified application is available for children who were assessed as eligible for annual HLSN funding in Quarters 1 to 4 2025 and who are returning to the community preschool and continue to have high learning support needs in 2026. Simplified applications for eligible children will be found in ECCMS as a draft application.

Applications should only be submitted for returning children with constant and ongoing high learning support needs, who meet the 2026 HLSN program eligibility criteria.

Simplified applications must be reviewed and updated to demonstrate the child’s current functioning within the community preschool environment, reflecting any progress made, adjustments and supports required to enable participation in the preschool program on the same basis as their peers. This information must not be copied and pasted from the child’s 2025 HLSN application. In order to be eligible, applications for continuing children in 2026 will need to provide an update on the current circumstances of the child.

4.2 Consent forms

Under the applicable Funding Agreement Terms and Conditions, community preschools are required to facilitate the signing of two types of consent forms, namely, one for each staff member and one for each child upon enrolment. This form consents to the use and disclosure of personal information and health information that is used by the department for reporting and funding purposes.

Service providers must complete the consent form every year that a child is enrolled, as consent forms may be updated on a yearly basis. Providers should also have families complete a new form if any of the details in the original consent form require an update or adjustment.

Provided the child consent form has been completed for each child, additional forms of parent/carer consent are not required for any related grants under the Disability and Inclusion Program. Community preschools are strongly encouraged to maintain ongoing dialogue with families regarding the submission of HLSN funding applications and the development and adjustment needs of individual children.

Consent forms are available for download:

• Consent Form - Child (PDF 716.68KB)
• Consent Form - Personnel (PDF 683.72KB)

Records of consent forms must be kept securely by the community preschool, along with documentary evidence of the child’s disability and/or additional needs. It is not a requirement for consent forms to be uploaded with a child’s application in ECCMS. However, the department will conduct compliance checks as part of its auditing process. As such providers are required to retain declaration and consent forms for this purpose as per Section 8. Financial accountabilities and funding compliance of these guidelines.

4.3 Application requirements

HLSN applications require:

• one at least of a written diagnosis, NDIS plan or community preschool observations; and
• details of how the child functions in the community preschool environment that consider the child’s strengths and needs in relation to the developmental domains; and
• details of current and proposed adjustments that enable the child to participate in the educational program on the same basis as their peers. This may include adult guidance, teaching strategies, or environmental modifications; and
• notification of the number of weeks the child is enrolled at the community preschool, excluding the weeks the preschool is closed for school holidays.

4.4 Types of evidence / applications

There are 3 types of evidence that can be provided for HLSN applications:

• written diagnosis
• NDIS plan
• preschool observations.

One type of evidence is the minimum requirement to support an application. Community preschools may choose to upload more than one type of evidence. to support an application. The department refers to 3 ‘types of applications’ which correspond to these 3 types of evidence.

4.4.1 Written diagnosis applications

Documentation must:

• confirm diagnosis of disability; and
• be from the specialist and/or health professional who made the diagnosis and on their letterhead. Electronic reports or records that confirm diagnosis of disability with electronic signatures, where a letterhead may not be available, may be accepted;
• to confirm, be from the specialist who made the diagnosis rather than for example an alternative specialist who refers to a diagnosis by someone else; and
• be relevant, accurate and as recent as possible.

Specialists may include an audiologist, registered psychologist, paediatrician, psychiatrist, speech pathologist, occupational therapist, a professional qualified to administer psychometric assessments or other relevant medical specialist.

Where a document refers to a speech and language delay/disorder only, a moderate to severe diagnosis must be demonstrated and made by a speech pathologist.

4.4.2 NDIS Plan applications

An approved NDIS plan for a child must be uploaded with a NDIS plan application. The full NDIS plan does not need to be provided.

The uploaded NDIS plan must at least include the following parts:

• the child’s full name; and
• the plan approval date, and/or the plan start date.

4.4.3 Preschool observations applications

In circumstances where a child has been identified by the community preschool as having high learning support needs, and a written diagnosis or NDIS plan is not available or in place, community preschools may submit an application supported by preschool observations.

Observations must demonstrate that a child has high learning support needs and demonstrate the frequency, intensity and duration of the concerns across the preschool routine. Observations should be taken over the course of at least a week and must be as recent as possible.

Observations are not personal opinions but rather provide data about the child’s functioning in the community preschool environment. Observations must be recorded by educators at the preschool and must be dated.

Observations can be recorded as:

• running records
• time samples
• frequency tally
• scatter plots
• anecdotal observations
• Antecedents, Behaviour, Consequences (ABC) recordings
• language samples
• learning stories or narratives of key events.

The dated observations must be a description of what is observed, and must not contain personal opinions, developmental summary statements, analysis or evaluation.

The department has developed a series of optional templates to assist community preschools to make observations. The templates have been adapted from a webinar delivered by STaR which was funded through the department’s Sector Development Program, now known as the Safety and Quality Practice Program. Community preschools may wish to use the templates to support a HLSN application. Use of the templates does not determine the application outcome nor eligibility for funding. Access the templates and webinar for preschool observations.

The following documentation is not sufficient to show eligibility, in themselves:

• letters of support for funding from professionals, including therapists and Sector Capacity Building (SCB) providers
• professional reports indicating concerns and the requirement for further investigation
• screeners such as Ages and Stages
• developmental summaries or developmental milestone checks written by preschool educators
• Individual Behaviour Plans or Individual Learning Plans.

However, these documents can be provided as additional supporting evidence , if available.

4.5 Annual vs quarterly funding

Applications can be assessed as eligible for funding either on an annual or quarterly basis. Eligible applications will attract annual funding, except where the department determines that adjustments may only be required for the child’s high learning support needs on a temporary basis or where school exemption documentation is required (see Section 4.7 School exemptions).

Applications that include observations taken by preschool educators that strongly indicate HLSN but do not provide sufficient evidence for annual funding may be considered for one quarter of funding.

Applications eligible for quarterly funding will require the submission of a variation to be considered for payment for another quarter.

4.6 Variations – including extended absence, child has left, increase or decrease in hours

Changes in a child’s circumstances as the year progresses must be indicated through an application for variation. Variations can only be made to eligible applications in ECCMS.

To complete a variation, community preschools can select the pencil icon next to the child’s name in the list of child applications in ECCMS, select the reason for the variation and follow the prompts.

Community preschools must select the reason for variation that best suits the child’s change in circumstances. Where a child’s circumstances have changed in several ways, more than one variation should be submitted.

Variations must be made as soon as practicable where:

• the child leaves the community preschool
• the child’s learning support needs change, and the community preschool needs to request an increase in HLSN hours, or a decrease in HLSN hours (including reducing HLSN hours to zero where the child no longer requires HLSN funding)
• school exemption documentation is obtained or a progress update about obtaining school exemption documentation is required
• the child has returned from an absence of more than 5 weeks.

Variations may result in a change in a community preschool’s funding allocation throughout the year and a funding adjustment in the community preschool’s next payment.

4.7 School exemptions

The Education Act 1990 mandates that all children must be in compulsory schooling by 6 years of age. Where an eligible child is turning 6 before 1 October 2026 and is still attending preschool, a Certificate of Exemption must be included with the child’s application to receive annual funding, if they will be enrolled at a department public school. For children who will be attending a non-government school, an exemption from enrolment must be issued by the principal of the non-government school.

Community preschools that are in the process of obtaining (from parents/carers), a Certificate of Exemption/letter will be funded for one quarter only and must subsequently submit a variation to an eligible application for continued funding until a Certificate of Exemption is provided. Community preschools can submit the variation to their eligible application – by clicking ‘provide school exemption documentation’ in ECCMS - and must report progress towards obtaining a certificate, and/or submit a certificate once obtained.

These exemptions are arranged between families and schools.

Information about transition to school for children with disability and additional needs can be found on the website. For further information on the school exemption process, please contact the child's local school or the local educational services team. Your local educational services team can be contacted on 131 536.

For children who will be attending school in a state other than NSW, adherence to the relevant State’s legislation and processes for school exemption documentation is required.

4.8 Corrections and previously ineligible applications

In certain circumstances, corrections to submitted applications, which have not yet been assessed, may be made. A provider wishing to make corrections or add information to their applications should make a request to the department. The department will then assess that request and may return the submitted application to ‘draft’ for re-editing and re-submission.

Applications that have previously been assessed as ineligible cannot be edited and resubmitted in ECCMS. A new application should be submitted when new or updated information becomes available.

5. Application opening, closing and outcome dates

The opening date for applications is 3 November 2025. The following other key dates (including application outcome dates) also apply.

There are specific exceptional circumstances where the closing dates may be different, and also specific ‘backdating rules’ set out below.

*Only certain types of variations (namely, increase in hours, decrease in hours, extended absence and child has left) and applications for children enrolled after the Quarter 4 application cut-off date (5 pm, Friday 14 August 2026) will be considered for payment.

Exceptional circumstances for an extended cut-off date

The department may consider requests related to the extension of time for submission of HLSN funding applications. Requests should be made in writing and emailed to ecec.funding@det.nsw.edu.au. All extension requests will be considered by the department on a case-by-case basis. Extensions will only be approved under limited and exceptional circumstances. Exceptional circumstances are like, or, related to the following circumstances which impact the community preschool’s ability to submit the application by the relevant cut-off date due to demonstrated reasons beyond its control: environmental disaster, unexpected staff absence due to illness or inability to access ECCMS.

5.1 Backdating

5.1.1 Backdating for new applications

The deadline for backdating for the period from 1 January 2026 to 30 June 2026 is 30 June 2026.

Applications assessed as eligible for annual funding submitted up to and including 30 June 2026 will be backdated to the child’s enrolment start date for 2026.

Funding for eligible applications submitted on or after 1 July 2026 will be backdated to 1 July 2026, or the child’s enrolment start date for 2026, whichever is the later date, to a maximum of 300 hours.

Community preschools that submit applications on or after 1 July 2026 to support a child with HLSN enrolled from 1 July 2026 can receive up to 300 hours of funding. This condition also applies if the child’s enrolment start date is after 1 July 2026 and the community preschool submits the application prior to 1 July 2026.

Under very limited and exceptional circumstances, applications submitted after 1 July 2026 may be considered for more than 300 hours of funding. Exceptional circumstances are like, or, related to the following circumstances which impact the community preschool’s ability to submit the application earlier due to demonstrated reasons beyond its control: environmental disaster, long-term illness, or due to circumstances impacting the child and family which may include out of home care, violence or trauma.

Such exceptional circumstances requests (for funding more than 300 hours) will not be considered where an application could have been submitted earlier, or to reverse the impact of the backdating rule on funding allocations.

Where a community preschool believes that a child enrolled from 1 July 2026 requires adjustments supported by greater than 300 hours of funding, exceptional circumstances can be indicated in the application. All exceptional circumstances funding requests will be considered by the department on a case-by-case basis.

Applications must state:

• a clear justification of how the circumstances are exceptional, that is, what circumstances mean that more than 300 hours are required to implement the proposed adjustments for this child in the final 6 months of the year; and
• how many hours above 300 are needed; and
• a description of the proposed adjustments, that is, what adjustments will be provided using the 300 hours and what adjustments will be provided with the additional hours being requested.

5.1.2 Backdating for variations

Funding adjustments for approved variations to increase or decrease hours submitted by 30 June 2026, will be backdated to the variation start date.

Funding adjustments for approved variations to increase hours submitted on or after 1 July 2026, will be backdated to 1 July 2026, or the variation start date, whichever is the most recent date.

Funding adjustments for approved variations where the child has left the community preschool and to decrease hours will be calculated on a pro-rata basis, according to the variation start date (that is, the date the child left the community preschool).

5.2 Priority payments

A priority payment may be made outside of the regular quarterly payment schedule. A HLSN application can be considered for a priority payment where assessment determines that there is an urgent need to remove barriers for supervision to ensure a child’s access and participation within the preschool program. Factors may include:

• significant safety concerns for the child and/or other children, and/or staff at the community preschool
• the significant safety concerns box is selected in the child’s application in ECCMS
• the application is submitted within the first 4 weeks of the Quarter 2, 3 or 4 application periods.

Examples of safety concerns may include, but are not limited to:

• injuries to self and/or other children/staff
• absconding from environments and/or the community preschool premises
• aggressive actions such as hitting, kicking, biting, spitting, climbing or throwing furniture.

Subsequent payments following a priority payment will return to the normal quarterly payment schedule.

Priority payment is not available for children funded for HLSN in previous years at the community preschool.

6. Assessment criteria and feedback

The department will individually assess all HLSN applications against the eligibility criteria and assessment requirements as outlined in these program guidelines.

The assessment panel consists of Department of Education employees, equivalent to Grade 7/8 Program or Project Officer level or above. Panel members are appointed based on their expertise and experience in the ECEC sector and inclusive education.

If there is any missing or unclear information, community preschools may be contacted with the opportunity to provide additional information. This will be done on a case-by-case basis.

Once assessed, the recommendations are made in writing for approval by the relevant delegates of authority as the decision-maker. Funding is approved in line with financial delegations within the department’s Early Childhood Outcomes division. This means, depending on the grant value, funding may be approved by the Manager of Disability & Inclusion, the Director, Equity & Inclusion, Executive Director, Quality, Participation and Connections or Deputy Secretary, Early Childhood Outcomes.

Providers will be notified of assessment outcomes for each application, and their funding allocation via email. When an application has been assessed as ineligible, the individual spreadsheet provided to each provider at the time of notification will indicate the relevant section of the guidelines for reference as the reason for ineligibility.

Feedback on the outcome of a funding application can be sought from the assessment team by emailing ecec.funding@det.nsw.edu.au and providing the following information:

• child’s application ID
• community preschool name
• contact person at the community preschool and contact phone number
• the question/s you have about the child’s application.

Once you have provided this information, a member of the assessment or program team will contact you to discuss your application.

Note: please do not provide sensitive information (including diagnostic reports, developmental assessments, NDIS plans and observations) via email.

Information about community preschools who are successfully awarded funding under the HLSN funding program will be made available on the NSW Government Grants and Funding Finder, as required.

The publication of information will comply with any legal requirements under the Privacy and Personal Information Protection Act 1998 (NSW) (PPIP Act), the Health Records and Information Privacy Act 2002 (NSW) (HRIP Act) and other statutory requirements.

7. Spending rules

HLSN funding must be used to support the individual child.

Funding must be used for either or both of the below:

• To increase the adult to child ratio during identified periods of the child’s attendance, enabling the child to participate in the education program and achieve the learning outcomes documented in their ILP.
• Complete other activities directly related to the development, delivery and review of the child’s ILP, including:
  • developing the ILP
  • collaborating and strengthening partnerships with other professionals working with the child
  • engaging with the Sector Capacity Building program on matters related to the child
  • attending professional learning but only where this type of training cannot be provided free of charge by the Sector Capacity Building provider for the local area (which, under the SCB program, is free of charge).

Funding can also be used to offset the course costs of professional development, where this type of training cannot be provided free of charge by the community preschool’s Sector Capacity Building provider. See Section 10. Application support for further information on Sector Capacity Building providers.

When completing the application for HLSN funding (in ECCMS), applicants must indicate the requested hours for employing additional staff to directly support the child, specifically, in the table for enrolment details and support hours requested.

Similarly, support hours requested to undertake other activities to support the child must be reflected in the 'other support hours' section in the ECCMS application form.

The hours of funding required to offset actual professional development costs must also be included in the 'other support hours' section in the ECCMS application form.

Funding cannot be used for anything else, for example:

• payment of fees charged to a parent/child
• employment or payment of therapists for children
• assessments
• specialist medical consultations (for example, paediatricians)
• equipment, furniture and environmental modifications
• early intervention supports that are most appropriately provided through the NDIS
• any other functional supports that are provided through the NDIS or other programs
• to offset existing staff costs
• to confirm, paying for professional development (including course costs, even if related to the inclusion of the child) where this type of training can be provided free of charge by the Sector Capacity Building provider for the local area.

HLSN funding provided by the department is a contribution to the possible expenses associated with implementing adjustments to enable individual children with disability and additional needs to be included on the same basis as their peers. A community preschool can choose to employ staff at a higher hourly rate. The department’s contribution to the cost of an additional educator, to increase the adult to child ratio, regardless of qualification or hourly rate, is $27.57 (ex GST) per hour per educator. Operational decisions such as employment arrangements are not determined by the department or this program.

Approved HLSN funding cannot be transferred between community preschools when a child withdraws and enrols in a new community preschool. The funding must be returned to the department if a child leaves the community preschool. The new community preschool should instead submit a new application itself.

HLSN funding allocations must be expended in 2026.

To align with the 7 Quality Areas of National Quality Standards (NQS), all HLSN funding program spending should directly support the delivery of high-quality early childhood education and care, ensuring that every expenditure contributes to ongoing service improvement and positive outcomes for children.  

7.1 Hours of support must be used

HLSN applications must only be made for the hours of support that a community preschool can spend in accordance with the program spending rules.

If a community preschool does not need or intend to employ additional staff to directly support individual children with HLSN, they may only apply for the HLSN funding hours to undertake other activities to support the child under the program spending rules.

The department may engage with community preschools regarding applications and hours of support requested where there may be a need to clarify aspects of what is being applied for.

8. Financial accountabilities and funding compliance

In accordance with the applicable Terms and Conditions, a provider must submit a financial accountability statement for each individual community preschool which has received funding. Submitting financial accountabilities helps to provide assurance that public funds have been spent for their intended purpose and in accordance with these program guidelines.

This is completed through ECCMS. Providers will be notified when these are due. Further information is available in the Financial Accountability Return Guide and on the Financial Accountability - Information for Services page.

8.1 Surplus and refunds

Providers are required to spend all HLSN funding in accordance with the spending rules during the relevant program period (See Section 7. Spending rules ). 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.

8.2 Record keeping

The department periodically conducts reviews of community preschools and funding distributed to providers. For this purpose, the department may request that providers supply supporting documentation to the department and its representatives, which must be supplied.

Community preschools may be reviewed to confirm the accuracy of data provided in their performance and financial accountability statements, and to ensure that the funding provided has been used to support the objectives of this HLSN program.

All relevant records must be retained by providers for the purpose of the department undertaking funding compliance reviews.

Examples of relevant records include:

• proof of expenditure in line with spending rules
• parent/legal guardian declaration forms
• enrolment and consent forms
• documentary evidence of the child’s disability and/or additional needs
• ILPs (see Section 9 below )
• Certificates of Exemption for any 6-year-old children enrolled in the community preschool, as required by Section 4.7 School exemptions.

8.3 Review and evaluation

These guidelines may be updated or amended over the course of the annual program. This will be in response to continuous program improvement or where further clarity is required. Changes to the guidelines may be made in consultation with the sector but remain at the discretion of the department. Any changes will be communicated to the sector.

The department may undertake an evaluation to understand the effectiveness of the 2026 HLSN program. Providers may be required to participate in an evaluation of the program through the provision of data and participation in other evaluation activities.

9. Individual learning plan (ILP)

The spending rules require that an ILP be developed for each child approved for HLSN funding. An ILP should have the following characteristics:

• be a written document that details what the community preschool will do for the child (including any reasonable adjustments being made to support the child)
• be a working document to help the community preschool record the progress of each child's learning, development and wellbeing
• be developed in consultation and agreement with the child's parents/carers
• does not need to be lengthy or complex
• be updated regularly and reviewed at least every 6 months
• forms part of the planning/documentation of the child's educational program and progress as part of the National Quality Framework
• address the following:
  • assessment information reports
  • information about the child's disability and additional needs
  • roles and responsibilities of team members and other services that may work with the child at the community preschool (for example, early childhood early intervention providers under the NDIS)
  • summary of the child's strengths, interests and needs
  • long term goals and outcomes
  • specific short-term objectives
  • teaching strategies
  • ongoing evaluation
  • documentation of the processes of transitions and continuities (either transition within the preschool, or from preschool to school).

A community preschool can use the ILP to:

• document consultation with the child's parents/carers
• complement the goals and aspirations expressed in the child's NDIS support plans.

10. Application support

Under the Disability and Inclusion Program, Sector Capacity Building (SCB) providers are available to all community preschools to support the delivery of inclusive education practices and enhance inclusion readiness. At the time of these guidelines’ publication, the department’s SCB program is in place until 30 June 2026.

SCB providers can help preschool staff apply for HLSN funding.

Community preschools are encouraged to contact their contracted SCB provider before 30 June 2026 for support or to contact the department if they do not have the contact details of their contracted SCB provider. The contact details for SCB providers can also be found in the 2025-2026 Sector Capacity Building Program page.

Section 6. Assessment criteria and feedback above also outlines certain feedback that is available when an initial application has been assessed as ineligible.

The department may engage with community preschools regarding applications and hours of support requested where there may be a need to clarify aspects of what is being applied for.

11. Further information

11.1 Conflict of interest management

The department is required to consider and manage any conflicts of interest that may arise throughout all stages of the funding process. This includes any actual, perceived or potential conflicts that are identified.

All providers are required to disclose to the department any actual, potential, or perceived conflicts of interest in their application which relate to their application. A conflict of interest must also be disclosed during the implementation of a program if it arises. Conflicts of interest may relate to partnerships, third party service provisions, contractors, relationships of staff employed as a direct result of the funded program or other aspects. Further detail about how to disclose a conflict of interest can be provided on request.

11.2 Disability Discrimination Act 1992

The department encourages community preschools to ensure that they are aware of their obligations under the Disability Discrimination Act 1992 (the Act). Further information on the Act is available from the ACECQA website. The department also encourages preschools to seek support from their SCB provider to explore how barriers to inclusion may be removed or adjusted without additional funding. See Section 10. Application support of these guidelines for further information on SCB providers.

11.3 Contact details

For further information about early childhood education programs, please contact the department by:

• calling 1800 619 113
• emailing ecec.funding@det.nsw.edu.au
• Right to Access (incl. GIPA) – Agency Information Guide.

11.4 Feedback

We like to hear when things have gone well so we can continue to provide more positive experiences. Community preschools who have feedback, suggestions or complaints about the application and assessment process should contact the department at ecec.funding@det.nsw.edu.au.

Alternatively, you may:

• Complete the NSW Department of Education Complaint, compliment or suggestion form.
• Call 1800 619 113.