2025 Start Strong for Long Day Care program guidelines

This page describes the purpose, funding information and program requirements of the 2025 Start Strong for Long Day Care program.

1. Purpose

This document provides an overview of the 2025 Start Strong for Long Day Care program. It outlines the program’s activities, requirements, objectives, outcomes, and evaluation approach.

The NSW Department of Education (the department) is the decision maker and primary agency responsible for administering the 2025 Start Strong for Long Day Care program.

This document forms part of the 2025 Funding Agreement with Approved Funded Providers (providers) and may be amended or replaced by the department from time to time. Providers must comply with the current version of the program guidelines, available on the department’s website.

2. Program description

The 2025 Start Strong for Long Day Care program provides funding to deliver affordable quality preschool education to children aged 3 and above who are enrolled in eligible long day care services in NSW. The program value is approximately $300 million to $330 million.

The 2025 Start Strong for Long Day Care program operates on a calendar year from 1 January 2025 to 31 December 2025. Initial funding allocations for eligible services are generally calculated based on NSW enrolment data provided by the Australian Government from the representative week of 24 June to 30 June 2024 (June 2024 Data).

Funding is provided for children in the 2 years before school and incentivises enrolments of 600 hours per year. Evidence shows that this level of participation in a quality early childhood education program in the 2 years before school is associated with better outcomes for children.

Start Strong for Long Day Care provides funding through 3 streams:

program funding for children aged 4 and above (4YO+ Program Payment), scaled for enrolments above and below 600 hours, with loadings for:
1. Aboriginal and Torres Strait Islander children
2. services located in areas of relative socio-economic disadvantage.
fee relief for families of children aged 4 and above (4YO+ Fee Relief Payment)
fee relief for families of children aged 3 (3YO Fee Relief Trial Payment).

Start Strong for Long Day Care supports eligible services to:

improve the service they provide through supporting capability uplift of early childhood teachers (ECTs) and educators, the attraction and retention of ECTs and educators, purchase of educational resources and program development
reach out to their community to offer and promote quality early childhood education
reduce the cost of early childhood education for families by providing up to $2,174 per year in fee relief for children aged 4 and above, and up to $515 per year in fee relief for children aged 3.

2.1 3YO Program Trial Payment

A two-year trial of 3YO Program Payments operated during 2023 and 2024.

The department is currently considering arrangements for 2025 and will provide separate advice once available.

2.2 Program key dates

These dates are indicative only to assist providers and applicants with their planning and may be subject to change. Any changes will be communicated to providers and applicants.

June 2024

NSW enrolment data collected by the Australian Government for the representative week of 24 June – 30 June 2024 (June 2024 Data) which will be used to calculate initial 2025 annual allocations.

November 2024

Applicable Terms and Conditions released in the Early Childhood Contract Management System (ECCMS)

December 2024

4YO Fee Relief Payment (January 2025 to September 2025 period) – payment of Instalment 1 - 75% of annual allocation
3YO Fee Relief Payment (January 2025 to September 2025 period) – payment of Instalment 1 - 75% of annual allocation

January 2025

4YO Program Payment (January 2025 to June 2025 period) – payment of Instalment 1 - 50% of annual allocation

February 2025

NSW enrolment data collected by the Australian Government for the representative week of 24 February to 2 March 2025 (February Data) which may be used for funding calculations and adjustments

June 2025

NSW enrolment data collected by the Australian Government for the representative week of 23 June to 29 June 2025 (June Data) which may be used for funding calculations and adjustments

July 2025

4YO Fee Relief Payment (October 2025 to December 2025 period) – payment of Instalment 2 - 25% of annual allocation
3YO Fee Relief Payment (October 2025 to December 2025 period) – payment of Instalment 2 - 25% of annual allocation
4YO Program Payment (July 2025 to December 2025 period) – payment of Instalment 2 - 50% of annual allocation
Application process to capture services that have opened and are providing education to enrolled and attending children after collection of the February Data) and as at the representative week of 23 June to 29 June 2025

November 2025

4YO Program Payment adjustment for additional equity enrolments

January 2026

Application process to capture services that have opened and are providing education to enrolled and attending children as at a representative week in December 2025.

3. Program eligibility

3.1 Service eligibility criteria

To be considered eligible for funding under any of the Start Strong for Long Day Care funding streams, a provider must:

have service approval for its service/s to operate under either:
- the Education and Care Services National Law Act 2010 (National Law) and operate as a centre-based service and have checked the long day care Nature of Care field under Service Details on the National Quality Agenda IT System (NQAITS), or
- the Children (Education and Care Services) National Law Application Act 2010 (NSW), the Children (Education and Care Services) Supplementary Provisions Act 2011 (NSW) or Children (Education and Care Services) Supplementary Provisions Regulation 2024 (NSW), and be a Multifunctional Aboriginal Children’s Service (MACS); an Occasional education and care service, or a Mobile education and care service
be approved to operate a service and administer the Child Care Subsidy under the Family Assistance Law and be operating and reporting as a Centre Based Day Care (CBDC) approval through the Child Care Subsidy System (CCSS)
deliver a quality early childhood education program to children aged 3 and above, that is:
- delivered by a qualified early childhood teacher (ECT) in accordance with the requirements under the National Quality Framework and
- using the Early Years Framework.

Note: the early childhood education program for 3-year-old children need only be developed by a qualified ECT in accordance with the requirements under the National Quality Framework

accept and comply with the Early Childhood Outcomes Programs and Local Operations – Funding Agreement – Terms and Conditions – 1 January 2025 to 31 December 2025 (Terms and Conditions).

Services must take reasonable steps to deliver 600 hours of quality preschool to children in the two years before school at their service.

The Start Strong for Long Day Care program is an open non-competitive program as this best supports the delivery of affordable quality preschool education for 3- to 5-year-old children enrolled in eligible long day care services in NSW.

The department determines eligibility of funded services annually (or more often where required) which is generally based on NSW enrolment data provided by the Australian Government from the representative week of 24 June to 30 June 2024 (June 2024 Data). The department may consider any other details provided by the provider or other parts of the department to assist in the determination of funding eligibility. See 3.1.3. Identifying eligible services and assessment of eligibility process.

The eligibility of a service remains at the absolute discretion of the department consistent with the Start Strong for Long Day Care program guidelines.

Funding for eligible services is calculated as outlined in Section 4. Calculation and payment of funding.

Funding is generally approved as per financial delegations within the Department’s Early Childhood Outcomes division. This means, depending on the grant value, funding is approved by either the Manager, Start Strong for Long Day Care, the Director, Programs and Local Operations, the Executive Director, Early Childhood Outcomes or the Deputy Secretary, Early Childhood Outcomes.

3.1.1 Occasional education and care services

Occasional education and care services regulated under the Children (Education and Care Services National Law Application) Act 2010 (NSW), or the Children (Education and Care Services) Supplementary Provisions Act 2011 (NSW) can receive funding under the Start Strong for Long Day Care program, subject to the above Start Strong eligibility being met.

3.1.2 Mobile education and care services

Mobile education and care services regulated under the Children (Education and Care Services National Law Application) Act 2010 (NSW), Children (Education and Care Services) Supplementary Provisions Act 2011 (NSW), or Children (Education and Care Services) Supplementary Provisions Regulation 2024 (NSW) can receive funding under the Start Strong for Long Day Care program, subject to the above Start Strong eligibility being met.

Mobile education and care services funded through the Mobile Preschool Funding Program or Start Strong for Community Preschools program are not eligible for Start Strong for Long Day Care funding.

3.1.3 Identifying eligible services and assessment of eligibility process

Providers are not required to apply for this program. As outlined above, the department determines eligibility of funded services based on June 2024 Data. For new services, the department will conduct regular checks to identify eligible services, and their providers based on the February 2025 Data and June 2025 Data.

In addition, the department will conduct an application process in approximately March 2025, July 2025, and January 2026. Providers with services that opened and are providing education to enrolled and attending children after the collection date may be eligible for funding and will receive email communication from the department. Information supplied in the application process will be assessed for eligibility.

Providers should note that the service’s opening date may be later than the service approval date. All eligible approved providers will receive communication from the department. See Section 11.1 New services for further details.

3.2 Child eligibility criteria

For a provider to be eligible for 4YO+ Program Payment and 4YO+ Fee Relief Payment funding under Start Strong for Long Day Care, for a child, that child must be:

the age of 4 years old on, or before, 31 July 2025 (the child’s birthdate must be on, or before, 31 July 2021)
attending an eligible early childhood education program
a confirmed enrolment with the service in the CCSS
not yet in compulsory schooling.

For a provider to be eligible for 3YO Fee Relief Trial Payment funding under Start Strong for Long Day Care, for a child, that child must be:

the age of 3 years old and not yet 4 years old on, or before 31 July in 2025 (the child’s birthdate must be on, or between, 1 August 2021 to 31 July 2022)
attending an eligible early childhood education program
a confirmed enrolment with the service in the CCSS
not yet in compulsory schooling.

Children who are 6 years old will be eligible for funding. Where required, a Certificate of Exemption as per the Exemption from School Procedures policy from compulsory schooling must be in place.

Families do not have to be eligible or receiving the Australian Government Child Care Subsidy (CCS) to be eligible for Start Strong funding. The child must be a confirmed enrolment in the service data captured in the CCSS.

Children do not have to be in the preschool room to be eligible for Start Strong funding. All children who meet the eligibility criteria are eligible regardless of the room they attend.

Citizenship and residency status are not taken into consideration for eligibility of children for funding under Start Strong for Long Day Care.

3.3 Priority of access

Services are encouraged to give priority of access to:

children who are at least 4 years old on or before 31 July in that preschool year and not enrolled or registered at a school
children who are at least 3 years old on or before 31 July in that preschool year and are:

o children from low-income families

o children with an Aboriginal and Torres Strait Islander background

o children with disability or additional needs

o children with English language needs

children who are at risk of significant harm (from a child protection perspective).

There is no order of priority assigned to the list of points above. Services should give priority to the groups outlined above before any other groups, including 3-year-olds not eligible for equity loading.

Provisions relating to priority of access are intended to assist services with making enrolment decisions in a way that seeks to allocate places to those in the greatest need. Services may prioritise enrolments for 600 hours or more and consider the hours children are enrolled at other funded services when making enrolment decisions. However, particular community and family needs will also be relevant.

Services should consider any adjustments to policies and procedures required to comply with regulatory requirements when obtaining and sharing personal information, including privacy laws.

4. Calculation and payment of funding

4.1 Initial funding calculations

The initial 4YO+ Program Payment, 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment for eligible services is calculated based on NSW enrolment data provided by the Australian Government from the representative week of 24 June to 30 June 2024 (June 2024 Data).

4YO+ Program Payment and 4YO+ Fee Relief Payment calculations will include children who are at least 4 years old on, or before, 31 July 2024 (the child’s birthdate must be on, or before, 31 July 2020).

3YO Fee Relief Trial Payment calculations will include children who are 3 years old and not yet 4 years old on, or before 31 July in 2024 (the child’s birthdate must be on, or between, 1 August 2020 to 31 July 2021).

The department will communicate initial funding amounts, including a breakdown of loadings and the number of eligible fee relief enrolments funded, to the approved providers of eligible services via email.

4.1.1 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 the funding notification letter emailed to approved providers.

4.2 4YO+ Program Payment funding rates and calculation

The 4YO+ Program Payment is provided per enrolment for eligible children in an eligible service as per Table 1.

Children who are enrolled for 600 hours or more per year will receive the full rate of funding, and children enrolled for fewer than 600 hours will receive 67% of the full amount (regardless of the number of hours enrolled).

An additional 50% loading is provided for Equity Enrolments:

for Aboriginal and Torres Strait Islander children; or
if the service is located in a geographic area (Statistical Area Level 2) with a Socio-Economic Indexes for Areas (SEIFA) Decile of 1 or 2 (ranking within NSW) on the Index of Relative Socio-Economic Disadvantage 2021.

SEIFA information of the service is determined by the Australian Government using the SEIFA Index of Relative Socio-Economic Disadvantage 2021 provided by the Australian Bureau of Statistics (ABS).

Providers will only receive one amount of loading per Equity Enrolment.

Table 1: Program Payment funding calculation - amount per enrolment

Enrolment	Amount per enrolment	Loading per enrolment
Children enrolled for 600 hours or more	$1,055	$528
Children enrolled forless than 600 hours	$707	$354

4.3 4YO+ Fee Relief Payment funding rates and calculation

The 4YO+ Fee Relief Payment is calculated as an annual flat rate allocation of $2,174 per enrolment for eligible children, irrespective of the number of hours the child is enrolled per week.

4.4 3YO Fee Relief Trial Payment funding rates and calculation

The 3YO Fee Relief Trial Payment is calculated as an annual flat rate allocation of $515 per enrolment for eligible children, irrespective of the number of hours the child is enrolled per week.

4.5 4YO+ Program Payment Equity Enrolment adjustments

Adjustments to 4YO+ Program Payment funding will be applied by the end of 2025 to reflect an increase in Equity Enrolment numbers only, using data from the representative week of 24 February to 2 March 2025 (February Data)

A 4YO+ Program Adjustment Payment is calculated as a flat rate of $1,583 multiplied by additional Equity Enrolments of 600 hours or more from the representative week in 2025 (once selected), when compared to the June 2024 Data.

4YO+ Program Adjustment Payment calculations will include children who are at least 4 years old on, or before, 31 July 2025 (the child’s birthdate must be on, or before, 31 July 2021).

Equity Enrolments:

Aboriginal and Torres Strait Islander children; or
if the service is located in a geographic area (Statistical Area Level 2) with a Socio-Economic Indexes for Areas (SEIFA) Decile of 1 or 2 (ranking within NSW) on the Index of Relative Socio-Economic Disadvantage 2021.

4.6 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment Adjustments

The department will provide separate advice in 2025 about the timing and process for adjustments to 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment.

5. Payment of funding

The provider will not be paid unless the Early Childhood Outcomes Programs and Local Operations – Funding Agreement – Terms and Conditions – 1 January 2025 to 31 December 2025 (Terms and Conditions) are accepted in the Early Childhood Contract Management System (ECCMS). Providers must accept the Terms and Conditions in ECCMS before 31 January 2025 or a specified date as communicated by the department.

5.1 4YO+ Program Payment

The 4YO+ Program Payment will be paid in 2 instalments, unless otherwise advised by the department, according to the schedule below:

from January 2025 – for period January to June 2025 (payment of Instalment 1 – 50% of annual allocation)
from July 2025 – for period July to December 2025 (payment of Instalment 2 – 50% of annual allocation)

5.2 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment

The 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment will be paid in 2 instalments, unless otherwise advised by the department, according to the schedule below:

from December 2024 – for period January to September 2025 (payment of Instalment 1 – 75% of annual allocation)
from July 2025 – for period October to December 2025 (payment of Instalment 2 – 25% of annual allocation)

Payments of funding will be communicated to the provider of the eligible services by email.

The department can make changes to the above payment schedule at any stage and providers will be notified of the change. The department does not require the agreement of providers to make changes to the payment schedule above.

ECCMS is the online system used by the department to manage funding and contracting arrangements with early childhood education service providers. Funding amounts (excluding GST) are detailed in ECCMS through the ‘Payments’ tab on the Funding Specification.

6. Spending rules and activities

6.1 4YO+ Program Payment spending rules

The full amount of 4YO+ Program Payment funding should be expended for those purposes and targeted to benefit children aged 4 and above in 2025.

The provider must spend the 4YO+ Program Payment funds allocated to each service to:

pay salary and wages for Early Childhood Teachers (ECTs) and educators delivering the quality early childhood education
- pay salary and wages for ECTs and educators contracted in an ongoing/permanent, temporary/fixed term or casual arrangement
- pay salary and wages for additional/supernumerary ECTs and educators to improve staff/child experiences and outcomes.
purchase functional or educational resources or equipment (excluding capital works projects such as renovations and repairs to existing buildings or premises)
- literature such as books, magazines, and posters
- digital technology such as e-readers, iPads, interactive screens, and SMART boards
- art and craft materials
- sensory toys and aids
- sport and game equipment
- musical instruments
- Aboriginal and Torres Strait Islander cultural activities and resources
- multicultural activities and resources
- first aid and safety resources
- storage solutions in the preschool room
- inclusive furniture in the preschool room
- play equipment.
develop a quality early childhood educational program based on the Early Years Learning Framework, including associated staffing costs
- incursions and/or excursions – the delivery of a specialised education program by an external provider within the service or outside of the service – including transportation costs
- purchase program materials
support capability uplift of ECTs and educators through professional development and further study, including associated staffing costs
- support staff to upgrade their qualifications from a certificate to a diploma
- support staff to upgrade their qualification from a diploma to a 4-year degree
- traineeships
- mentorship initiatives
- study leave
- internally or externally delivered training, professional development and conference fees
- NSW Education Standards Authority (NESA) approved training
- subscriptions to ECEC journals
attract and retain ECTs and educators
- advertising ECT and educator positions
- monetary bonuses for retention and recognition of length of service and experience, including:
- sign on bonuses
- longevity bonuses
- hire casual staff to allow adequate programming time for staff
- relocation payments.
wellbeing supports for ECTs and educators
- counselling sessions
- individual support
- team building
- hire casual staff to enable team building time
- paid attendance at outside of hours staff meetings
- wellbeing focussed training courses.
reduce non-fee related barriers that families face when accessing quality early childhood education programs provided by long day care services or
- transportation initiatives
- food initiatives such as a breakfast program
- clothing related (hats)
- assist families to complete enrolment forms and Child Care Subsidy applications.
improve or maintain the service’s quality rating to Meeting or Exceeding the National Quality Standards
any combination of the above.

6.2 Loadings for children with an Aboriginal and Torres Strait Islander background spending rules

Where a service has received loadings to their 4YO+ Program Payment, the provider is required to spend the loadings to deliver targeted initiatives and support for Aboriginal and Torres Strait Islander children See Section 4. Calculation and payment of funding for more information on loadings. Examples of the effective use of the Aboriginal and Torres Strait Islander loading may look different in each service and community and may include:

engagement of an Aboriginal and Torres Strait Islander community member to work with the service
display and use of Aboriginal and Torres Strait Islander resources and regular cultural programs to support children to remain connected to their culture
outreach and continued engagement with families to support access and participation for Aboriginal and Torres Strait Islander children
resources that support access and participation for Aboriginal and Torres Strait Islander children
providing staff development opportunities such as training and conferences that promote outreach to Aboriginal and Torres Strait Islander children
providing access to medical assessments from an Aboriginal and Torres Strait Islander practitioner.

6.3 Loadings for services which operate within the lower range of SEIFA score of relative socio-economic disadvantage spending rules

Examples of the effective use of the relative socio-economic disadvantage loading will look different in each service, and may include:

targeted recruitment, attraction, and retention incentives to increase the proportion of staff from diverse backgrounds
building ECTs and educators capabilities to work in more inclusive and diverse work settings and implement targeted and individualised programs to ensure that children with relative disadvantage receive support to achieve their potential
initiatives to reduce non-fee related barriers that low-income families face including transportation, food, and clothing initiatives
outreach and continued engagement with low-income families to support access and participation.

6.4 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment Spending rules

Fee relief spending rules apply to both the 4YO+ Fee Relief Payment and the 3YO Fee Relief Trial Payment.

The provider must use the 4YO+ Fee Relief Payment to provide fee relief to the families of eligible children who are at least 4 years old on, or before, 31 July 2025. The amount is calculated as a flat rate annual allocation of $2,174 per enrolment for eligible children.

The provider must use the 3YO Fee Relief Trial Payment to provide fee relief to the families of eligible children who are 3 years old and not yet 4 years old on, or before 31 July in 2025. The amount is calculated as a flat rate annual allocation of $515 per enrolment for eligible children.

Fee relief must be offered by the provider to the families of all children that meet Section 3.2 Child eligibility criteria.

Funds must be expended before the end of 2025.

The 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment must be applied as a weekly reduction to a family’s session fee or gap fee (after the Child Care Subsidy has been applied) allocated across the total service operating weeks for the calendar year.

In situations where families pay the difference between the provider’s fee and the Child Care Subsidy amount (gap fee), the 4YO+ Fee Relief Payment or 3YO Fee Relief Trial Payment reduces the gap fee and/or additional charges. Any outstanding gap fees or additional charges after the Child Care Subsidy and 4YO+ Fee Relief Payment, or 3YO Fee Relief Trial Payment, have been applied must be paid by the family.

In situations where 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment funds received by the approved provider are not sufficient to provide fee relief to all the families of eligible children, an adjustment may be made.

6.5 4YO+ Program Payment funds can be used to cover shortfalls in fee relief funding

4YO+ Program Payment funds may also be used as an interim measure to provide fee relief to families of eligible children aged at least 4 years old on, or before, 31 July 2025, where the initial 4YO+ Fee Relief Payment allocation does not cover the number of eligible children accessing fee relief.

The funds need to be expended during the 2025 calendar year, unless otherwise agreed to by the department. 4YO+ Program Payment funding that is not fully spent in accordance with the spending rules is considered Unexpended Funds.

The provider must maintain records or documents as evidence of expenditure and provide it to the department if requested for the purposes of reporting or funding compliance reviews. Further information on record keeping requirements is available in Section 17. Financial accountability.

In situations where 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment funds received by the provider are not sufficient to provide fee relief to all the families of eligible children, a fee relief adjustment may be made.

6.6 4YO+ Fee Relief Adjustment Payment and 3YO Fee Relief Trial Adjustment Payment spending rules

A 4YO+ Fee Relief Adjustment Payment and/or 3YO Fee Relief Trial Adjustment Payment is to be expended to top up 2025 fee relief funding only if the department determines the service experienced a fee relief shortfall in 2025. The 2025 4YO+ Fee Relief Adjustment Payment can be used to top up shortfalls in 4YO+ Fee Relief Payment funding only. 3YO Fee Relief Trial Adjustment Payment can be used to top up shortfalls in 3YO Fee Relief Trial Payment funding only.

Where 4YO+ Fee Relief Adjustment Payment and/or 3YO Fee Relief Trial Adjustment Payment exceeds a shortfall amount, any funding exceeding the amounts are considered unexpended funds. The 2025 4YO+ Fee Relief Adjustment Payment and/or 3YO Fee Relief Trial Adjustment Payment can only applied to eligible enrolments in 2025.

If the 2025 4YO+ Fee Relief Adjustment Payment and/or 3YO Fee Relief Trial Adjustment Payment exceeds the funds your service expended on 2025 fee relief to eligible families, you may be required to return the unexpended funds to the department.

7.2 Fee relief invoicing and data

The provider must demonstrate and communicate the fee reduction from 4YO+ Fee Relief Payments and 3YO Fee Relief Trial Payments to families through regular statements, which attribute the fee relief to the NSW Government.

The provider must advise families when the 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment will commence and the frequency at which it will be applied, and that it does not impact their Child Care Subsidy payment.

Registered Child Care Subsidy System (CCSS) software providers are asked to ensure services can meet software support for fee relief invoicing and fee relief data collection.

7.2.1 Software support: Fee relief invoicing

From 1 January 2025, services need to demonstrate and communicate with families through regular statements, the weekly fee relief reduction, after Australian Government Child Care Subsidy (CCS) payment has been applied.

Fee statements/invoices to families generated by services software should display the below information:

daily fee
CCS deduction
fee relief payment from NSW Government
further fee relief reduction using surplus fee relief funds
gap fee to be paid by families
any other standard information already contained.

Services’ software should be able to produce invoices/statements with the above information. A manual process will be required for services that do not use software.

7.2.2 Software support: fee relief data collection

The department may ask for the fee relief data collected at services for funding assurance, determining fee relief funding adjustments, identifying families who may be incorrectly claiming fee relief at multiple services, or evaluating the Start Strong for Long Day Care program. The technical specification (XSLX 29.5 KB) for fee relief data can support services in fee relief data collection.

Services may provide this technical specification (XSLX 29.5 KB) to their software vendor.

7.2.3 Collection and data security

The department will protect all data received in accordance with security and privacy compliance guidelines.

8. Reserved and surplus fee relief funds

Providers are required to manage their fee relief funds based on the changing number of enrolments and families/carers who claim fee relief from their service.

8.1 Reserved fee relief funds - where a service's current enrolments are less than what is funded

Where service’s current enrolments are less than what is funded, if they have enrolments ineligible for fee relief, or if a family declares they will not claim fee relief from their service, the fee relief funding must be reserved (reserved fee relief funds).

Where a child leaves the service, funding for that enrolment is considered reserved fee relief funds until the next eligible child that takes up that enrolment.

Reserved fee relief funds cannot be used until an additional eligible child nominates to receive fee relief from the service. The provider must retain reserved fee relief funds and may be required to return it to the department.

8.2 Surplus fee relief funds - where gap fees have been reduced to zero

Where a family’s gap fees have been reduced to zero in a regular billing period, the remaining fee relief is considered a surplus (surplus fee relief funds). The provider must first spend surplus fee relief funds to cover any additional charges imposed on the eligible child, such as levies.

Remaining surplus fee relief funds from the 4YO+ Fee Relief Payment may then be used to reduce the fees for children that are at least 4 years old on, or before, 31 July 2025 (the child’s birthdate must be on, or before, 31 July 2021) at the discretion of the service, for example children of families with greatest need.

Remaining Surplus Funds from the 3YO Fee Relief Trial Payment may then be used to reduce the fees for children that are 3 years old and not yet 4 years old on, or before 31 July in 2025 (the child’s birthdate must be on, or between, 1 August 2021 to 31 July 2022) at the discretion of the service, for example children of families with greatest need.

Remaining surplus fee relief funds may be used to further reduce the fees for children already accessing fee relief at the services or to reduce the fees for children whose families did not nominate the service on the declaration and consent form. Families of children whose fees are reduced using remaining surplus fee relief funds must have submitted a declaration and consent form.

The provider must advise families that the fee reduction funded by remaining surplus fee relief funds is provided under exceptional circumstances. The provider must demonstrate and communicate fee reduction funded by surplus fee relief funds to families through a separate line item on regular statements. The provider must track the usage of surplus fee relief funds.

8.3 Reserved fee relief funds and changes in enrolments throughout the year

The following scenarios explain the circumstances when fee relief funds are either 'reserved fee relief funds’ or become ‘surplus fee relief funds’ when there are changes in enrolments at a service.

Vacant enrolment place

If an enrolment place is vacant for an extended period of approximately12 weeks or more, or the entire preschool year, the fee relief for this place is considered reserved fee relief funds. Providers are required to return these funds to the department. This may be facilitated through the annual financial accountability process.

Vacant enrolment place filled partway through an extended period

If a vacant enrolment place is filled partway through an extended period of approximately 12 weeks or more (for example, if an eligible child is enrolled from week 5 onwards), the reserved fee relief funds for the enrolment place for the weeks in that term before the eligible child’s enrolment commences become surplus fee relief funds. These funds can be spent in line with Section 6.4 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment spending rules.

9. Children enrolled at multiple services

If a child is enrolled in more than one service (e.g. at another long day care or preschool service), they can only access the Fee Relief Payment from one service at a time.

Where a service receives funding under Start Strong for Long Day Care and Start Strong for Community Preschools, children can only access the Fee Relief Payment from one funding program.

Families must complete a fee relief declaration and consent form as outlined under Section 7.1 Fee relief declaration and consent form to nominate which service they will access the fee relief from. For each additional service the child is enrolled at, families must complete an additional fee relief declaration and consent form, stating that they are not claiming fee relief at that service (as they are claiming fee relief elsewhere).

The department will conduct compliance checks as part of its auditing process. Providers are required to retain declaration and consent forms for this purpose as per Section 17.2 Record keeping and funding compliance review.

If a provider receives the Fee Relief Payment for a child whose family declares they will not claim fee relief from their service, the provider must quarantine the funding as reserved fee relief funds as outlined above.

10. Fee guidelines

In line with the affordability objectives of the program:

Providers are not permitted to increase their service’s fees to offset the benefit of the 4YO+ Fee Relief Payment or 3YO Fee Relief Trial Payment.
Before fee relief or any other subsidies (for example, the Child Care Subsidy) is applied, the fee for children in the same cohort must be the same irrespective of eligibility for fee relief at the service.

If a provider does not comply with either of the things listed in the 2 dot points above, this may be considered to be an Event of Default under the Terms and Conditions. In circumstances where it is necessary to adjust fees, such as due to reasonable increases in operating costs, providers must retain evidence to support the fee increase.

11. New services and transferred services

Funding to new services and transferred receiving approved providers of a service is not immediate.

The department relies on data from the Australian Government via the Child Care Subsidy System to assist to determine eligibility of funding and funding calculations.

The department must confirm eligibility and must conduct due processes before payments are made to new services or to transferred receiving approved providers.

11.1 New services

New services may be identified based on NSW enrolment data provided by the Australian Government from the representative week in February 2025 and June 2025.

The department will conduct checks in approximately March 2025, July 2025, and January 2026 to identify and confirm the eligibility of services that have opened and are providing education to enrolled and attending children. This is in addition to eligibility being identified in the February 2025 Data and June 2025 Data. The service’s opening date may be later than the service approval date. All eligible providers will receive communication from the department. The department may invite new services via an application process during 2025. See Section 2.2 Program key dates for further details on dates.

The January 2026 application process is expected to close in early February 2026. Process outcomes are expected by April 2026. If eligible, the process will be used to calculate 2025 funding back dated to the date of opening in 2025; and Instalment 1 payments in 2026.

11.2 Transferring service approval

11.2.1 Transferring Approved Provider

If an approved provider is transferring a service to another approved provider, then the transferring approved provider must do the following:

Contact the department at ecec.funding@det.nsw.edu.au when the transfer has been initiated with the Australian Children’s Education & Care Quality Authority (ACECQA)
Comply with their obligations under the Terms and Conditions in regard to clause 21.13 Assignment and novation.
Immediately contact the department at ecec.funding@det.nsw.edu.au to confirm once the transfer has taken effect.
Complete all outstanding financial accountabilities in ECCMS. The department will advise of any additional financial accountabilities that require completion for the funded period up to the service transfer effective date. A manual financial accountability form may need to be completed for this purpose. The financial accountability must be completed within 14 days of the transfer of the service, unless otherwise agreed with the department.
Return any Unexpended Funds, including unexpended surplus fee relief funds, and reserved fee relief funds to the department within the timeframe advised by the department. The transferring approved provider must not under any circumstances transfer any unspent funds to the receiving approved provider (e.g. as part of a sale of business), either by way of adjustment between the 2 parties or any means.
Comply with any direction by the department under the Funding Agreement.
Cease expending funding from the transfer effective date unless otherwise agreed with the department.

The department may use fee relief data to assess the number of eligible children receiving fee relief at the service at the time of transfer and calculate fee relief funding adjustments for the transferring approved provider for the period up to the date of transfer.

If an approved provider transfers a service to another approved provider, at its discretion the department may take actions and may withhold funding:

from the receiving approved provider of the service, until the transfer is effective
from the transferring approved provider of the service, after the transfer is initiated or after the transfer is effective in NQAITS.

Note: approved providers must follow steps to comply with regulatory requirements under the National Law and Regulations, including submitting an application for service transfer to the NSW Regulatory Authority. See the Guiding principles and policies website.

11.2.2 Receiving Approved Provider

There is no guarantee the receiving approved provider will receive any funding in 2025.

If an approved provider is receiving a service from another approved provider, then the receiving approved provider must do the following to be considered eligible to receive funding:

Contact the department at ecec.funding@det.nsw.edu.au when the transfer has been initiated.
Immediately contact the department at ecec.funding@det.nsw.edu.au to confirm once the transfer has taken effect.
Complete required documentation as directed by the department and enter into a Funding Agreement with the department.
Collect a completed fee relief declaration and consent form for all enrolled children that are eligible for fee relief after the transfer is effective.
Under no circumstances, have accepted the transfer of any unspent funds from the transferring approved provider (e.g. as part of a sale of business), either by way of adjustment between the 2 parties or any means. If the receiving approved provider has accepted any unspent funds (by way of adjustment or any means), it must advise the department, and the department may request the return of unexpended funds to the department.

The receiving approved provider is not required to provide fee relief to the families of eligible children at the service before:

service eligibility has been confirmed
the provider has accepted the 2025 Funding Agreement in ECCMS, or
the service receives Fee Relief Payment funding into the nominated bank account

The provider is responsible for any business consequences of an operational decision of the provider to provide fee relief prior to fee relief payments being received or for any of the other reasons listed above.

The transferring provider may be eligible for instalment payments up until the transfer effective date. The receiving provider may be eligible for instalment payments after the transfer effective date. Instalment payments are not adjusted according to the effective transfer date, unless otherwise advised by the department.

If an approved provider transfers a service to another approved provider, at its discretion the department may take actions and may withhold funding:

from the receiving approved provider of the service, until the transfer is effective
from the transferring approved provider of the service, after the transfer is initiated or after the transfer is effective in NQAITS.

If unexpended funds are identified by the transferring provider, the department will contact the receiving approved provider regarding the unexpended funds, spending rules and payment processing dates. There is no guarantee that the transferring provider will identify any unexpended funds.

12. Services ceasing to operate

If a service is to close/cease trading or is voluntarily suspended or involuntarily suspended, prior to the date of closure, the provider must:

contact the department at ecec.funding@det.nsw.edu.au as soon as possible notifying the department of the intended closure
cease expending funds from the date of closure
comply with their obligations under the Terms and Conditions, specifically in relation to Notifying Problems, Retention of Records and Event of Default
complete all outstanding financial accountabilities in ECCMS. The department will advise of any additional financial accountabilities that require completion for the closing service for the funded period up to the date of closure. A manual financial accountability form may need to be completed for this purpose. The financial accountability must be completed within 30 days of the closure of the service, unless otherwise agreed with the department
return all Unexpended Funds, including unexpended surplus fee relief funds, and reserved fee relief funds to the department by no later than 30 days of the service closure date or as agreed by the department
comply with any direction by the department under the Funding Agreement.

The department may take actions if a service has notified the department that it proposes to close/cease trading, including withholding funding for the service that is proposed to be closed/cease trading from the provider, where that funding relates to a period after the proposed date of closure.

No funding will be provided by the department for a service that has closed/ceased trading, in relation to the period after the date of closure.

Note: providers must follow steps to comply with regulatory requirements under the National Law and Regulations, including notifying the NSW Regulatory Authority within 7 days of ceasing to operate the education and care service (section 173(2)(d) of the National Law).

13. Transition to School Statement

Completing Transition to School Statements for children in the year before they start Kindergarten is a mandatory requirement of the Start Strong program.

The Transition to School Statement (the statement) provides a snapshot of a child’s strengths, interests, needs and approaches to learning to support their effective transition to Kindergarten. A positive transition from early childhood education and care to Kindergarten helps improve children’s educational and social outcomes.

The child’s ECT or educator must complete the Transition to School Statement and provide it to the child’s parents/carers and new school before the commencement of the 2026 school year. This is to facilitate learning continuity and to help link the Early Years Learning Frameworks to the Early Stage 1 Syllabus.

ECTs and educators can complete the Transition to School Digital Statement via the department’s digital platform as the preferred method. Where access is not possible, the Transition to school statement (PDF 264 KB) can be completed. Copies of Transition to School Statements must be retained for funding compliance purposes.

Please note that parent consent must be obtained prior to starting a statement. The Transition to School Consent form (PDF 110 KB) can be uploaded onto the department’s digital platform enabling the educator to then proceed with the completion of the Transition to School Digital Statement. Providers accessing Start Strong funding must retain evidence of consent or non-consent for funding compliance purposes.

More information on the importance of the Transition to School Statement and supporting resources are available on the Transition to School website.

14. Quality uplift

A key objective of Start Strong is to support quality uplift and ensure children have access to high quality early childhood education programs that drive improved outcomes.

Over the course of the program, the department may work with approved providers of services rated as Working Towards NQS in Quality Area 1 – Educational Program and Practice. This may involve support such as resources, professional learning, mentoring, or engagement in the department’s Quality Support Program.

15. Administrative requirements

Providers that receive funding must:

Ensure the service information in CCSS is correct.
Ensure the Provider Approval and Service Approval information in National Quality Agenda IT system (NQAITS) is correct.
Ensure the provider’s main contact email in ECCMS is correct to receive communications from the department.
Complete and sign the electronic funds transfer (EFT) form, if required. Not all providers will need to complete and sign an EFT form, if this has already been completed. The department will contact those providers who require an EFT form to be completed.
Nominate a person who is authorised to bind the approved provider who will be the SP-Admin Account holder in the ECCMS. The SP-Admin Account holder is the only person who can accept the Terms and Conditions. Only one person per provider can be nominated as SP-Admin.
Ensure that the nominated SP-Admin must have a myID the Australian Government's Digital ID. The SP-Admin’s myID must be linked to the approved provider’s Australian Business Number (ABN) in the Relationship Authorisation Manager (RAM) to enable access to the Terms and Conditions in ECCMS.
Email the SP-Admin details linked to the approved provider’s Australian Business Number in RAM to the department at ecec.funding@det.nsw.edu.au, so that the ECCMS registration key can be provided. The ABN for the user must be identical to the ABN that will be linked to the provider in ECCMS. The department will email the registration key when the user details have been verified in ECCMS.
Ensure that the ECCMS SP-Admin account holder can log in to ECCMS successfully. Further information on how to log in to ECCMS can be found on the ECCMS information page.
Accept the Terms and Conditions before 31 January 2025 or a specified date as communicated by the department. The approved provider will not be paid unless the Terms and Conditions are accepted in ECCMS.

16. Communications

16.1 Publication of funding information

The department will publish grant funding information, including program details, provider information and funds awarded to the provider, on the NSW Government Grants and Funding Finder in line with the Grants Administration Guide.

16.2 Provider responsibilities

In addition to documenting fee relief under Section 6.4 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment spending rules, the provider is encouraged to publicly acknowledge the funding received through Start Strong and fee relief is provided to the families of eligible children with the following statement:

“This service is a recipient of funding under the NSW Department of Education’s 2025 Start Strong for Long Day Care program and fee relief is available for families of eligible children.”

Such acknowledgement may be included in a regular newsletter or an annual report.

To receive the most up-to-date communication, the provider’s SP-Admin account holder must review and/or update details in ECCMS. The changes can be completed in the Main Service Provider page. Providers should ensure that service details and contacts are up to date. This includes details on the Main Details tab, Contacts and Address tabs.

17. Financial accountability

In accordance with the Terms and Conditions, providers must submit a financial accountability for each individual service which has received funding. Submitting financial accountabilities helps to provide assurance that public funds have been expended for their intended purpose.

Financial accountabilities are 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.

In the cases where services have transferred or ceased operating, a manual financial accountability form is directly provided to providers and requires completion.

17.1 Review of financial accountabilities

Upon receipt of your financial accountability, the following will be undertaken:

Your financial accountability will be reviewed by the department.
Where there are Unexpended Funds, including unexpended surplus fee relief funds, and/or reserved fee relief funds, the department will issue a request for the repayment of these funds, detailing the amount to be paid, the payment category, and the bank account. Providers are required to return the unexpended funds within 30 business days from receipt of the request.
Where there is a nil balance or deficit reported, no further action is required unless otherwise directed by the department.

17.2 Record keeping and funding compliance review

The department may undertake a funding compliance review of the service in relation to Start Strong funds, and request that supporting documentation be provided by the provider to the department and its representatives.

Relevant records must be retained by the provider and provided to the department on request for the purpose of funding compliance reviews. Examples of relevant records may include:

proof of expenditure in line with Section 6.1 4YO+ Program Payment spending rules
statements to families demonstrating fee reduction and attributing fee relief to the NSW Government
evidence for any fee increases for children eligible for fee relief
fee relief declaration and consent forms
Transition to School Statements
certificates of exemption for any 6-year-old children enrolled in the service, if required
data requested by the department that is relevant to documenting fee relief to enable allocation of program funding aligned with service enrolments.

17.3 Management of unexpeded funds

17.3.1 Recovery of funds

Under the Terms and Conditions, providers may be required to return any Unexpended Funds, including unexpended surplus fee relief funds, and reserved fee relief funds to the department.

17.3.2 Offsets against future payments

Providers cannot offset any Unexpended Funds, including unexpended surplus fee relief funds, or reserved fee relief funds against any future payments, unless advised by the department.

18. Program objectives and outcomes

18.1 Objectives and program logic

Start Strong for Long Day Care program objectives are to:

improve affordability of preschool education
support quality uplift in preschool education
drive improved outcomes for children
incentivise increased enrolment and attendance in quality early childhood education programs in the years before school.

The department has developed a Start Strong program logic to show the relationship between the program activities and intended outcomes and to support continuous quality improvement. See Section 20. Program logic.

18.2 Program principles

The guiding principles that inform how Start Strong for Long Day Care is delivered are:

Accessible: Quality early childhood education is financially within reach for all families in NSW.

Equitable: All NSW children, including Aboriginal and Torres Strait Islander children and children experiencing vulnerability and disadvantage, have access to at least 600 hours per year of a high-quality early childhood education program in the years before school, which is a recommended minimum level of participation for children.

Inclusive: All services provide learning environments and programs that meet the early learning needs of all children in their community, regardless of background, ability, or socio-economic factors.

Proactive: Services will actively seek to improve enrolment and attendance for children using their service to meet the recommended level of at least 600 hours per year.

Outcomes-focussed: Children are better supported to transition to school. Families have greater confidence that the quality of the early childhood education program meets their child’s developmental needs.

Evidence-based: Program is grounded in 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 the social, cognitive, and emotional skills they need to engage in learning.

18.3 Policy context

Start Strong for Long Day Care program delivers on the Preschool Reform Agreement and preschool fee-relief initiatives.

In December 2021, NSW became the first signatory to the Preschool Reform Agreement (2022-2025), which commits Australian Government funding for early childhood education until the end of 2025. The Agreement is focused on children in the year before school, supporting universal access to early childhood education, regardless of service setting.

The Agreement is significant for NSW and the early childhood education sector, providing four years of funding certainty while supporting increased participation and quality.

The Agreement will also support important reforms for the preschool sector, including boosting enrolment, attendance, and trialling new outcomes measures for preschool. The department will work closely with the sector and provide further information on this as it becomes available.

The NSW Childcare and Economic Opportunity Fund (the Fund) is being used to trial the provision of fee relief to 3-year-old children attending eligible preschool programs in long day care centres, effective from 1 January 2024. The fee relief funding for 2025 will be delivered through the 2025 Start Strong for Long Day Care program. Both this program and the fee relief funding itself are being delivered on a test and trial basis target groups.

The target group for 4YO+ Program Payment and 4YO+ Fee Relief Payment funding is children who are at least 4 years old on, or before, 31 July 2025 and attending an early childhood education program in a long day care setting.

The target group for the 3YO Fee Relief Trial Payment is children who are 3 years old and not yet 4 years old on, or before 31 July in 2025 and attending an early childhood education program in a long day care setting.

Start Strong for Long Day Care is committed to supporting Aboriginal and Torres Strait Islander children. The department’s First Steps Strategy is a commitment to improving access to quality early childhood education for Aboriginal and Torres Strait Islander children in NSW. Start Strong supports the goals of the First Steps Strategy by:

supporting the attendance and engagement of Aboriginal and Torres Strait Islander children in early childhood education to enhance outcomes. This includes ensuring Aboriginal and Torres Strait Islander children are fully supported to attend a minimum of 600 hours of early childhood education in the year before school in all service types
ensuring funding models in NSW are best placed to enable quality participation of Aboriginal and Torres Strait Islander children
supporting services to deliver a culturally appropriate transition into early childhood education and primary school programs for Aboriginal and Torres Strait Islander children
ensuring early childhood education services have strong relationships with their local communities.

19. Review and evaluation

The 2025 Start Strong for Long Day Care program guidelines may be updated or amended at any time. This will be in response to continuous program improvement or where further clarity is required. Changes to the program 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.

Monitoring the overall performance of Start Strong determines whether the program is appropriately targeted and if program outputs and outcomes are being achieved.

To understand the effectiveness of Start Strong program funding and fee relief, evaluation will be undertaken. Approved providers will be required to participate in evaluation/s of the program through the provision of data and participation in other evaluation activities.

The department will ensure that any work with approved providers to enhance early childhood education programs aligns with quality expectations outlined under the National Quality Framework (NQF).

20. Program logic

Start Strong program logic (PDF 127 KB)

21. More information and contact details

A range of resources are available to support providers in implementing the requirements under the Start Strong for Long Day Care program. A link to the Frequently Asked Questions is below.

Frequently Asked Questions (FAQs) - 2025 Start Strong for Long Day Care

Our FAQs contain easy to read answers to questions relating to providers and services. Topics include Fee Relief, declaration and consent forms, service eligibility, spending rules, calculation, and payments.

More information about the Early Childhood Contract Management System (ECCMS)

More information is available at the ECCMS frequently asked questions.

More information about myID and Relationship Authorisation Manager

Information on myID and Relationship Authorisation Manager is available on the:

Having trouble with myID and RAM?

Support for myID and RAM is provided by the Australian Taxation Office (ATO). Find support for:

More information about Childcare Care Subsidy (CCS) for approved providers

CCS helpdesk telephone 1300 667 276
CCS helpdesk email: ccshelpdesk@dese.gov.au

Contact details

For questions, feedback, complaints, or access to information about Start Strong, please contact the department by:

Calling 1800 619 113
Emailing ecec.funding@det.nsw.edu.au

An officer within Early Childhood Outcomes will consider and respond to your enquiry.