1. Purpose

This guidelines document provides an overview of the 2026 Start Strong for Long Day Care program (program). It outlines the program’s eligibility, calculation and payment of funding, spending rules and activities, requirements, objectives, outcomes, and evaluation approach.

The NSW Department of Education (the department) is the primary agency responsible for administering the 2026 Start Strong for Long Day Care program. The department and the NSW Childcare and Economic Opportunity Fund are the two source agencies.

The guidelines form part of the 2026 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 2026 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 $350 million to $380 million. The 2026 Start Strong for Long Day Care program operates on a calendar year from 1 January 2026 to 31 December 2026. Initial funding allocations for eligible services are generally calculated based on NSW enrolment data provided by the Australian Government from the representative week of 23 June to 29 June 2025 (June 2025 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 4 streams:

• 4YO+ Program Payment – provides program funding for children aged 4 and above, scaled for enrolments above and below 600 hours, and with 50% loading for:
  • Aboriginal and/or Torres Strait Islander children
  • services located in areas of relative socio-economic disadvantage
    
• 4YO+ Fee Relief Payment – provides fee relief for families of children aged 4 and above
  
• 3YO Program Trial Payment - provides program funding for children aged 3 with 50% loading for:
  • Aboriginal and/or Torres Strait Islander children
  • services located in areas of relative socio-economic disadvantage
    
• 3YO Fee Relief Trial Payment provides fee relief for families of children aged 3.

3. Key changes in 2026

3.1 Overview of Quality Uplift

The department reserves the right to pause or cease funding to any service where the service’s quality ratings in any of 7 Quality Areas (QA) of the National Quality Standard (NQS) do not lift to ‘Meeting’ or above, within an appropriate timeframe, as determined by the department.

A service may be directed to participate in quality uplift activities or in the department’s Quality Support Program or any other program, to lift ratings to ‘Meeting’ or above.

See Section 16 Quality uplift for more information.

3.2 Distinction between not-for-profit and for-profit providers

Funding is being directed to not-for-profit services. Funding is also being directed to children attending a for-profit service located in areas of disadvantage. See Section 7.4 4YO+ Program Payment and 3YO Program Trial Payment funding rates and calculations and Section 5 Definition of not-for-profit and for-profit providers for more information.

3.3 Children eligible for maximum funding

Children eligible for maximum funding include Aboriginal and/or Torres Strait Islander children, children attending a service located in regional and remote areas, and areas of relative socio-economic disadvantage. See Section 7.1 Definition of children eligible for maximum funding and Section 7.5 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment funding rates and calculations for more information.

3.4 4YO+ Program Payment and 3YO Program Trial Payment funding rates and calculations

4YO+ Program Payment and 3YO Program Trial Payment funding rates and calculations are different for not-for-profit providers and for-profit providers. There are also different rates depending on the SEIFA decile of for-profit services. See Section 7.3 Indexation and Section 7.4 4YO+ Program Payment and 3YO Program Trial Payment funding rates and calculations for updated 4YO+ Program Payment and 3YO Program Trial Payment funding rates and calculations.

3.5 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment funding rates and calculations

4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment funding rates and calculations are different for children eligible for maximum funding. See Section 7.5 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment funding rates and calculations for updated 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment funding rates and calculations

3.6 Quarterly payments

All four funding streams 4YO+ Fee Relief Payment, 3YO Fee Relief Trial Payment, 4YO+ Program Payment and 3YO Program Trial Payment will be paid in four equal quarterly instalments:

1. Quarter 1 payments (January to March 2026) expected by 19 December 2025
2. Quarter 2 payments (April to June 2026) expected by 30 April 2026
3. Quarter 3 payments (July to September 2026) expected by 31 July 2026
4. Quarter 4 payments (October to December 2026) expected by 31 October 2026.

See Section 8 Payment of funding in equal quarterly payments for more information.

3.7 Remaining fee relief and unspent funds

Remaining fee relief is fee relief that may be allocated to eligible children in the service in some circumstances. Unspent funds refer to funds that may need to be returned to the department. These terms replace the terms ‘Reserved’, ‘Surplus’ and ‘Unexpended’ funds. See Section 9.7 Remaining fee relief funds for more information.

3.8 Strengthening accountability and oversight of remaining fee relief funds expenditure

Where a family’s gap fees have been reduced to zero in a regular billing period, the provider may spend remaining fee relief funds to cover any additional charges imposed on the eligible child, such as levies. Any remaining fee relief funds can then only be used to cover a shortfall of total fee relief to the service. Services can no longer use surplus funds to reduce other children’s fees at the service’s discretion. See Section 9.7.2 Where gap fees have been reduced to zero for more information.

3.9 Simplified transfer of service process

The transfer of service process has been simplified to improve continuity of fee relief funding to families, improve outcomes for providers, and reduce provider administrative burden. See Section 13.2 Transferring a service for more information.

4. 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 2025

NSW enrolment data collected by the Australian Government for the representative week of 23 June to 29 June 2025 (June 2025 Data) which will be used to calculate initial 2026 annual allocations.

November 2025

Applicable 2026 Terms and Conditions released in the Early Childhood Contract Management System (ECCMS).

December 2025

Processing of all Quarter 1 payments (January to March 2026) expected by 19 December 2025:

1. 4YO+ Fee Relief Payment
2. 3YO Fee Relief Trial Payment
3. 4YO+ Program Payment
4. 3YO Program Trial Payment.

February 2026

NSW enrolment data collected by the Australian Government for the representative week of 23 February to 1 March 2026 (February 2026 Data) unless otherwise advised, which may be used for funding calculations and adjustments.

April 2026

Processing of all Quarter 2 payments (April to June 2026) expected by 30 April 2026:

1. 4YO+ Fee Relief Payment
2. 3YO Fee Relief Trial Payment
3. 4YO+ Program Payment
4. 3YO Program Trial Payment.

June 2026

NSW enrolment data collected by the Australian Government for the representative week of 22 June to 28 June 2026 (June 2026 Data) unless otherwise advised, which may be used for funding calculations and adjustments.

July 2026

Processing of all Quarter 3 payments (July to September 2026) expected by 31 July 2026:

1. 4YO+ Fee Relief Payment
2. 3YO Fee Relief Trial Payment
3. 4YO+ Program Payment
4. 3YO Program Trial Payment.

October 2026

Processing of all Quarter 4 payments (October to December 2026) expected by 31 October 2026:

1. 4YO+ Fee Relief Payment
2. 3YO Fee Relief Trial Payment
3. 4YO+ Program Payment
4. 3YO Program Trial Payment.

November 2026

Processing of 4YO+ Program Payment adjustments for additional equity enrolments for Aboriginal and/or Torres Strait Islander children and for services located in SEIFA Deciles 1 and 2 (most disadvantaged).

5. Definition of not-for-profit and for-profit providers

A not-for-profit provider is an organisation or entity that operates an early childhood education and care service without generating a profit for owners or shareholders. All profit is reinvested into the service, resources and facilities.

A for-profit provider is an organisation or entity that operates an early childhood education and care service that aims to generate profit for its owners or shareholders.

6. Program eligibility

6.1 Service eligibility criteria and decision-maker

To be considered eligible for funding under any of the Start Strong for Long Day Care funding streams, a provider must ensure its service/s meet all of the following criteria:

• have service approval for its service to operate under either:
  • the Education and Care Services National Law Act 2010 (National Law) and Education and Care Services National Regulations, 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 with 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
  • based on 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; and

• accept and comply with the Early Childhood Outcomes Commissioned Programs – Funding Agreement – Terms and Conditions – 1 January 2026 to 31 December 2026 (Terms and Conditions).

The department reserves the right to pause or cease funding in alignment with any decisions made by the Australian Government regarding its funding of a service approved or previously approved to administer the Child Care Subsidy under the Family Assistance Law.

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 23 June to 29 June 2025 (June 2025 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 Section 6.4 Identifying eligible services and assessment process.

The eligibility of a service to receive funding remains at the discretion of the decision maker consistent with the Start Strong for Long Day Care program guidelines. Where a service is unable to meet the eligibility criteria, the department will determine the best course of action.

Funding for eligible services is calculated as outlined in Section 7 Calculation and payment of funding.

Funding is 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, Sector Programs, the Executive Director, Programs and Local Operations or the Deputy Secretary, Early Childhood Outcomes.

6.2 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 criteria being met.

6.3 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 criteria being met.

State funded mobile education and care services and their mobile venues 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.

6.4 Identifying eligible services and assessment process

Providers are not required to apply for this program. As outlined above, the department determines eligibility of funded services based on June 2025 Data and their ability to meet the eligibility criteria. For new services, the department will conduct regular checks to identify eligible services, and their providers based on the February 2026 Data and June 2026 Data.

See Section 13.1 New services for further details.

6.5 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 2026 (the child’s birthdate must be on, or before, 31 July 2022)
• attending the provider’s 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 Program Trial Payment and 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 2026 (the child’s birthdate must be on, or between, 1 August 2022 to 31 July 2023)
• attending the provider’s 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 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 for Long Day Care 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.

7. Calculation and payment of funding

7.1 Definition of children eligible for maximum funding

A child is eligible for maximum funding if one of the following criteria is met:

1. All Aboriginal and/or Torres Strait Islander children, or
2. Children that attend a service:

• located in an Inner Regional, Outer Regional, Remote and Very Remote region in NSW based on 2021 Accessibility/Remoteness Index of Australia (ARIA+) produced by the University of Adelaide (Australian Centre for Housing Research) and used by the Australian Bureau of Statistics, or
• 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, or
• operated by an Aboriginal Community Controlled Organisation.

7.2 Initial funding calculations

The initial 4YO+ Program Payment, 4YO+ Fee Relief Payment, 3YO Program Trial 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 23 June to 29 June 2025 (June 2025 Data).

4YO+ Program Payment and 4YO+ Fee Relief Payment calculations based on June 2025 Data 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).

3YO Program Trial Payment and 3YO Fee Relief Trial Payment calculations based on June 2025 Data will include children who 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).

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.

7.3 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.

7.4 4YO+ Program Payment and 3YO Program Trial Payment funding rates and calculations

7.4.1 4YO+ Program Payment funding rates and calculations

The 4YO+ Program Payment is provided per enrolment for eligible children in an eligible not-for-profit or for-profit service as per Tables 1 to 3 below.

Children who are enrolled for 600 hours or more per year will receive the full rate of 4YO+ Program Payment 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/or 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.

7.4.2 3YO Program Trial Payment funding rates and calculation

The 3YO Program Trial Payment is provided per enrolment for eligible children in an eligible not-for-profit or for-profit service as per Tables 1 to 3 below.

Children who are enrolled for 600 hours or more per year will receive the same rate of 3YO Program Trial Payment funding as children enrolled for fewer than 600 hours.

An additional 50% loading is provided for Equity Enrolments on top of standard amount per enrolment:

• for Aboriginal and/or Torres Strait Islander children; or
• if the service is in a geographic area (Statistical Area Level 2) with a SEIFA Decile of 1 and 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, either the Aboriginal and/or Torres Strait Islander Loading or the SEIFA Decile of 1 or 2 Loading.

7.4.3 Not-for-profit providers

Table 1: Not-for profit services located in all SEIFA deciles 1-10

Providers will only receive one amount of loading per Equity Enrolment, either the Aboriginal and/or Torres Strait Islander Loading or the SEIFA Decile of 1 or 2 Loading in Table 1.

7.4.4 For-profit providers

Table 2: For-profit services located in SEIFA deciles 1-5

Providers will only receive one amount of loading per Equity Enrolment, either the Aboriginal and/or Torres Strait Islander Loading or the SEIFA Decile of 1 or 2 Loading in Table 2.

Table 3: For-profit services located in SEIFA deciles 6-10

7.5 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment funding rates and calculations

The 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment are calculated:

• as an annual flat rate allocation per enrolment for eligible children as per Tables 4-5 irrespective of the number of hours the child is enrolled per week.
• at the same rate for not-for-profit and for-profit services.

Table 4: Children eligible for maximum funding

Table 5: All other children

7.6 Adjustments

7.6.1 4YO+ Program Payment and 3YO Program Trial Payment Equity Enrolment adjustments (for increases in enrolments of Aboriginal and/or Torres Strait Islander children and for services located in SEIFA deciles 1 and 2)

Equity enrolments are defined in Section 7.4.1 4YO+ Program Payment funding rates and calculations and 7.4.2 3YO Program Trial Payment funding rates and calculation, namely:

1. enrolments of Aboriginal and/or Torres Strait Islander children in any service
2. all services located in SEIFA deciles 1 and 2.

Adjustments to 4YO+ Program Payment funding will be applied by the end of 2026 to reflect an increase in Equity Enrolment numbers enrolled for 600 hours or more only, using February 2026 Data.

Adjustments to 3YO Program Trial Payment funding will be applied by the end of 2026 to reflect an increase in Equity Enrolment numbers only, using February 2026 Data.

A 4YO+ Program Adjustment Payment, or 3YO Program Trial Adjustment Payment, is calculated as the total of the relevant amount per enrolment plus the corresponding Equity Enrolment amount in Tables 1 to 3 above, for each increase from February 2026 Data when compared to the June 2025 Data.

7.6.2 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Top Up Payment

The voluntary fee relief data submission process under 2026 Start Strong for Long Day Care will open from 29 January 2027. Services only need to submit fee relief data if they need a 2026 fee relief funding top up payment because the funding received in 2026 was not enough to cover correctly expended fee relief for all eligible children under these program guidelines.

If services need a 2026 fee relief funding top up, they need to submit fee relief data once for the reporting period 1 January to 31 December 2026 in the Early Childhood Contract Management System (ECCMS). Services must retain a copy of the signed Fee relief declaration and consent form for each eligible child. The department may require you to provide to the department a copy of each signed Fee relief declaration and consent form and the child’s weekly fee statement showing the fee relief provided after the application of the Child Care Subsidy.

The department will provide further information by 1 December 2026.

8. Payment of funding in equal quarterly payments

The provider will not be paid unless the Early Childhood Outcomes Programs and Local Operations – Funding Agreement – Terms and Conditions – 1 January 2026 to 31 December 2026 (Terms and Conditions) are accepted in Early Childhood Contract Management System (ECCMS). Providers must accept the Terms and Conditions in ECCMS before 31 January 2026 or a specified date as communicated by the department. Funding will not be paid if a provider accepts Terms and Conditions in ECCMS after 31 January 2026, unless otherwise agreed with the department.

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

1. Quarter 1 payments (January to March 2026) expected by 19 December 2025
2. Quarter 2 payments (April to June 2026) expected by 30 April 2026
3. Quarter 3 payments (July to September 2026) expected by 31 July 2026
4. Quarter 4 payments (October to December 2026) expected by 31 October 2026.

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.

9. Spending rules and activities

9.1 4YO+ Program Payment and 3YO Program Trial Payment spending rules

The full amount of 4YO+ Program Payment and 3YO Program Trial Payment funding should be expended for those purposes and targeted to benefit children aged 3 and above in 2026. All program payment spending should directly support the delivery of high-quality early childhood education and care to align with the 7 Quality Areas of National Quality Standards (NQS). This ensures that every expenditure contributes to ongoing service improvement and positive outcomes for children.

The provider must spend the 4YO+ Program Payment and 3YO Program Trial Payment funds allocated to each service to:

• pay salary and wages for Early Childhood Teachers (ECTs) and educators to deliver a quality early childhood education program
  • 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
  • resources for outdoor learning spaces and physical activity such as sport and game equipment
  • musical instruments
  • Aboriginal and/or 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 and/or deliver 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 e.g., to deliver children’s programs such as protective behaviours
  • purchase program materials e.g., materials for programs such as science, technology, engineering, and mathematics, nature pedagogy, engaging visual artists – art program, and outdoor learning programs like beehives
• 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 e.g., mental health first aid, safeguarding and child protection training, circle of security and relational pedagogy professional development
  • NSW Education Standards Authority (NESA) approved training
  • subscriptions to ECEC journals and membership fees to professional bodies
• 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
  • 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.

9.2 Loadings for Aboriginal and/or Torres Strait Islander children spending rules

Where a service has received loadings to their 4YO+ Program Payment and 3YO Program Trial Payment, the provider is required to spend the loadings to deliver targeted culturally responsive initiatives and support for Aboriginal and/or Torres Strait Islander children. See Section 7 Calculation and payment of funding for more information on loadings. Examples of the effective use of the Aboriginal and/or Torres Strait Islander loading may look different in each service and community and may include:

• reaching out to the community and collaborating on a place-based solution for the children and their families
• creating a safe and culturally responsive learning environment
• strengthening staff capability and awareness of Aboriginal and/or Torres Strait Islander culture, people and history.

For example: having staff attend Aboriginal and/or Torres Strait Islander cultural awareness training.

9.3 Loadings for services which operate within SEIFA deciles 1- 2 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 include:

• targeted recruitment, attraction, and retention incentives to increase the proportion of staff from diverse backgrounds
• building ECTs and educator’s 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.

9.4 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment spending rules

4YO+ Fee Relief Payments cannot be used to provide fee relief for 3YO children.

3YO Fee Relief Trial Payments cannot be used to provide fee relief for 4YO+ children.

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

Fee relief must be offered by the provider to the families of all children that meet Section 6.5 Child eligibility criteria.

Fee relief must be provided to children eligible for maximum funding at the rates outlined in Table 4 in Section 7.5 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment funding rates and calculations and calculations.

Fee relief must be provided to other children at the rates outlined in Table 5 in Section 7.5 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment funding rates and calculations and calculations.

Funds must be expended before the end of 2026.

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) divided equally across the total service operating weeks for the calendar year.

In situations where families pay any 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 at the requisite rate to all the families of eligible children, an adjustment of additional funding from the department to the provider may be made. See the Section 9.5 4YO+ Program Payment and 3YO Program Trial Payment funds can be used to cover shortfalls in fee relief funding for more information.

9.5 4YO+ Program Payment and 3YO Program Trial Payment funds can be used to cover shortfalls in fee relief funding

4YO+ Program Payment funds can be used as an interim measure to provide fee relief to families of eligible children where the initial 4YO+ Fee Relief Payment allocation does not cover the number of eligible children accessing fee relief.

3YO Program Trial Payment funds can be used as an interim measure to provide fee relief to families of eligible children where the initial 3YO Fee Relief Payment allocation does not cover the number of eligible children accessing fee relief.

The funds need to be expended during the 2026 calendar year, unless otherwise agreed to by the department. 4YO+ Program Payment and 3YO Program Trial Payment funding that is not fully spent in accordance with the spending rules is considered in Section 17.4 Management of unspent funds.

The 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment adjustment process will open from 29 January 2027. See Section 7.6.2 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Top Up Payment and Section 9.6 4YO+ Fee Relief Adjustment Payment and 3YO Fee Relief Trial Adjustment Payment spending rules for more information.

The provider must maintain records or documents for the purposes of reporting or funding compliance review, as evidence of expenditure and provide it to the department on request. Further information on record keeping requirements is available in Section 17.2 Financial accountability and compliance.

9.6 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 2026 fee relief funding only if the department determines the service experienced a fee relief shortfall in 2026, meaning the service applied fee relief to families at the requisite rates and in accordance with these program guidelines, including Section 9.5 4YO+ Program Payment and 3YO Program Trial Payment funds can be used to cover shortfalls in fee relief funding. The 2026 4YO+ Fee Relief Adjustment Payment can be used to top up shortfalls in 4YO+ Fee Relief Payment funding as per Section 9.5 4YO+ Program Payment and 3YO Program Trial Payment funds can be used to cover shortfalls in fee relief funding only. 3YO Fee Relief Trial Adjustment Payment can be used to top up shortfalls in 3YO Fee Relief Trial Payment funding as per Section 9.5 4YO+ Program Payment and 3YO Program Trial Payment funds can be used to cover shortfalls in fee relief funding only.

If the 2026 4YO+ Fee Relief Adjustment Payment and/or 3YO Fee Relief Trial Adjustment Payment exceeds the funds a service expended on 2026 fee relief to eligible families as per Section 9.5 4YO+ Program Payment and 3YO Program Trial Payment funds can be used to cover shortfalls in fee relief funding, you may be required to return the unspent funds to the department as per Section 17.4 Management of unspent funds.

9.7 Remaining 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. A service can only provide fee relief to a child up to the eligible fee rate. See Section 7.5 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment funding rates and calculations for fee relief rates.

4YO+ Fee Relief Payments cannot be used to provide fee relief for 3YO children.

3YO Fee Relief Trial Payments cannot be used to provide fee relief for 4YO+ children.

9.7.1 Where a service’s current enrolments are less than what is funded

These funds are remaining funds when a service’s enrolments are lower than the number of funded places.

This can happen in situations such as:

• a child leaves the service, creating a vacancy.
• a family chooses not to receive fee relief from the service.
• an enrolment place is vacant.

These funds cannot be used until an additional eligible child nominates to receive fee relief from the service. The provider must retain these fee relief funds and may be required to return funds to the department as unspent funds.

9.7.2 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 provider may spend remaining fee relief funds to cover any additional charges imposed on the eligible child such as levies, and only up to the maximum amount of fee relief for that child. See Section 7.5 4YO+ Fee Relief Payment and 3YO Fee Relief Trial Payment funding rates and calculations for fee relief rates. Levies are additional charges that a service may apply to families on top of regular daily fees. See Section 21 Glossary of terms for more information.

Remaining fee relief funds from the 4YO+ Fee Relief Payment for the eligible child may then be used to cover any shortfall in total 4YO+ Fee Relief Payment funding to the service for other eligible children aged 4 and above, and only up to the maximum eligible fee relief rate applicable to each other child.

Any remaining funds from the 3YO Fee Relief Trial Payment for the eligible child may then be used to cover any shortfall in total 3YO Fee Relief Trial Payment funding to the service for other eligible children aged 3 years old, and only up to the maximum eligible fee relief rate applicable to each other child.

If there are 4YO+ Fee Relief and/or 3YO Fee Relief Trial funds remaining after covering the shortfall, these are unspent funds and may need to be returned to the department.

10. Children enrolled at multiple services under this program

If a child is enrolled in more than one service (e.g. at another long day care or preschool service), including with the same provider, 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 12.1 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 Fee relief declaration and consent forms for this purpose as per Section 17.3 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 remaining fee relief funds as outlined in Section 9.7 Remaining fee relief funds.

11. Fee guidelines

In line with the affordability objectives of the program and Section 6.1 Service eligibility criteria and decision-maker:

• 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, entitling the department to pause or cease funding. In circumstances where it is necessary to adjust fees, such as due to reasonable increases in operating costs or decrease in fee relief rates, providers must retain evidence to support the fee increase.

11.1 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:
  • children from low-income families
  • children with an Aboriginal and/or Torres Strait Islander background
  • children with disability or additional needs
  • 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 give priority to 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 are reminded they should consider any adjustments to policies and procedures required to comply with regulatory requirements when obtaining and sharing personal information, including privacy laws.

12. Documenting fee relief

12.1 Fee relief declaration and consent form

Providers are required to collect a completed Fee relief declaration and consent form for all enrolled children who are eligible for fee relief.

The Fee relief declaration and consent form (PDF 386 KB) is available for download. This form declares whether the child is enrolled at another service, and whether the family will be claiming fee relief from the service or from another long day care service or community preschool. The form is also used for families to consent to sharing the fee relief data collected on their child at each service with the department.

The department will conduct compliance checks as part of its auditing process. Providers are required to retain Fee relief declaration and consent forms for this purpose as per Section 17.3 Record keeping and funding compliance review.

To assist services to communicate regarding the Fee relief declaration and consent form to families, services can download a template letter (DOCX 50 KB) to place on their letterhead. This letter explains what the funding is for, how it will be applied to their fees and why they need to complete the form and provide consent.

Fee relief under this program cannot be provided to families of eligible children where:

• consent has not been obtained through a completed Fee relief declaration and consent form
• a complete Fee relief declaration and consent form states that the family is receiving fee relief at another service.

In the above circumstances, providers must quarantine the Fee Relief Payment for the enrolment places filled by these children as remaining fee relief funds in accordance with Section 9.7 Remaining fee relief funds.

12.2 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.

12.2.1 Software support: Fee relief invoicing

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 remaining fee relief funds
• any gap fee still to be paid by families
• any other standard information.

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.

12.2.2 Software support: fee relief data collection

The department may ask for the fee relief data collected at services for funding assurance, to determine fee relief funding adjustments, identify families who may be incorrectly claiming fee relief at multiple services, or evaluate the Start Strong for Long Day Care program. The technical specification (XSLX 29 KB) for fee relief data can support services in fee relief data collection.

Services may provide this technical specification (XSLX 29 KB) to their software vendor.

12.2.3 Collection and data security

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

13. New services and transferred services

Funding to new services and receiving approved providers of a transferred service is not immediate or guaranteed. The department relies on data from the Australian Government via the Child Care Subsidy System to determine eligibility of funding and funding calculations.

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

13.1 New services

The department will conduct checks to identify eligible new services, and their providers based on the February 2026 Data and June 2026 Data or other available CCS data. In addition, the department may conduct an application process in 2026. Providers with services that opened and are providing education to enrolled and attending children may be eligible for funding and may receive email communication from the department. Information supplied in the application process will be considered in the assessment 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.

13.2 Transferring a service

The transferring approved provider may be eligible for quarterly payments up until the transfer effective date. The receiving approved provider may be eligible for quarterly payments after the transfer effective date. Quarterly payments are not adjusted according to the effective transfer date. See the Guiding principles and policies webpage.

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.

13.2.1 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 accountability statements in ECCMS. The department will advise of any additional manual financial accountability statements that require completion for the funded period up to the service transfer effective date.
• Return any unspent 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 transferring approved provider of the service, after the transfer is initiated or after the transfer is effective in NQAITS.

13.2.2 Receiving approved provider

There is no guarantee the receiving approved provider will receive any funding in 2026.

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 unspent 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 2026 Funding Agreement in ECCMS, 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 determined or for any of the other reasons listed above.

Quarterly payments will be determined by the status of the receiving approved provider at the first day of the quarter. The receiving approved provider will be eligible for the first quarterly payment after the transfer effective date as at the first day of the next relevant quarter:

• 1 January 2026 for Quarter 1 (January to March 2026)
• 1 April 2026 for Quarter 2 (April to June 2026)
• 1 July 2026 for Quarter 3 (July to September 2026)
• 1 October 2026 for Quarter 4 (October to December 2026).

Example: The transfer effective date is 7 February 2026. Quarter 2 payments are made to the receiving approved provider from 1 April 2026.

4YO+ Program Payment funds may also be used as an interim measure to provide fee relief to families of eligible 4-year-old+ children where the initial 4YO+ Fee Relief Payment allocation does not cover the number of eligible children accessing fee relief.

3YO Program Trial Payment funds may also be used as an interim measure to provide fee relief to families of eligible 3-year-old children where the initial 3YO Fee Relief Payment allocation does not cover the number of eligible children accessing fee relief.

The voluntary fee relief data submission process under 2026 Start Strong for Long Day Care will open from 29 January 2027. Services may submit fee relief data if they need a 2026 fee relief funding top up payment because the funding received in 2026 was not enough to cover fee relief expenditure for all eligible children.

The department may withhold funding from the receiving approved provider of the service until the transfer is effective.

14. 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 accountability statements in ECCMS. The department will advise of any additional financial accountability statements that require completion for the closing service for the funded period up to the date of closure. A manual financial accountability statement may need to be completed for this purpose. The financial accountability statement must be completed within 20 days of the closure of the service, unless otherwise agreed with the department
• return all unspent funds, including program payments and unspent fee relief funds to the department no later than 20 business 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).

15. Transition to School Digital Statement

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

Completing the Statement for children in the year before they start Kindergarten is a mandatory requirement of the Start Strong program.

The child’s Early Childhood Teacher (ECT) or educator must complete the Statement and provide it to the child’s parents/carers and new school before the commencement of the 2026 school year. This supports learning continuity and links the Early Years Learning Frameworks to the Early Stage 1 Syllabus.

ECTs and educators can complete the Statement via the department’s digital platform as the preferred method. Where access is not possible, the PDF version can be completed. Copies of 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 can be uploaded onto the department’s digital platform enabling the educator to then proceed with the completion of the Statement. Providers accessing Start Strong funding must retain evidence of consent or non-consent for funding compliance purposes.

If a parent or carer does not provide consent, you cannot create a Statement for their child. ECEC services should record when Statement consent is not provided for eligible children accessing Fee Relief funding and retain for funding compliance.

The Fee Relief does not have to be returned by the family to the service if the family did not consent to create a Statement.

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

16. 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 services and/or approved providers of services rated as Working Towards NQS or lower in any of the 7 Quality Areas. This may involve support such as resources (ECEC resource library and Sector Strengthening Partnership), professional learning (ECEC Professional Learning program and Early childhood careers hub), or mandatory participation by a service and/or provider in quality uplift activities or in the department’s Quality Support Program or any other program, to lift ratings to ‘Meeting’ or above, as directed.

The department reserves the right to pause or cease funding to any service whether or not a service utilises any of the supports above:

• if quality ratings in any of 7 Quality Areas of the NQS do not lift to ‘Meeting’ or above, within an appropriate timeframe, as determined by the department.

There are many resources in the Resource library which may be helpful including webpages on regulatory guidance to uplift quality practice across all Quality Areas.

Services can filter by theme, Quality Areas, and service type to find the resources most relevant to their context and need. We have also included further links to resources at Section 22 More information, resources and contact details.

17. Compliance and administrative requirements

17.1 Administrative

Providers that receive funding must:

1. ensure their service/s information in Child Care Subsidy System is correct
2. ensure the Provider Approval and Service Approval information in National Quality Agenda IT system (NQAITS) is correct and ensure the department is kept informed of any changes to the details
3. ensure the Provider Approval and Service Approval information, and main contact email in ECCMS are correct to ensure the provider receives all communications from the department
4. complete and sign the electronic funds transfer (EFT) form to register a new Approved Provider in departmental systems or to update banking details of an existing Approved Provider. The department will contact new providers who require an EFT form to be completed
5. 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
6. ensure that the nominated SP-Admin’s myID is 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
7. 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
8. 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
9. accept the Terms and Conditions before 31 January 2026 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.

17.2 Financial accountability and compliance

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

Financial accountability statements 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.

17.2.1 Review of financial accountabilities

A service’s financial accountability statement will be reviewed by the department.

Where there are unspent funds, the department will send a request seeking the return of unspent funds. Providers are required to return the unspent funds within 20 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.

17.3 Record keeping and funding compliance review

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

The provider must keep current, complete and accurate records in connection with the Funding Agreement including use of funding. On request, the provider must allow the department’s representative access to all records, including but not limited to administrative, enrolment, accounting and financial records.

The provider must retain all records for 7 years after the end or termination of the Funding Agreement. If the provider ceases to operate then the provider must ensure that all records remain accessible to the department for the entire 7-year period.

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 but not limited to:

• proof of expenditure in accordance with the spending rules under these program guidelines
• 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.

17.4 Management of unspent funds

17.4.1 Recovery of funds

Under the Terms and Conditions, providers must notify the department of any unspent funds the provider holds at the end of the 2026 program period by submitting a financial accountability statement and may be required to return any unspent funds, including unspent program payments and fee relief funds to the department.

17.4.2 No offsets against future payments

Providers cannot offset any unspent funds, including unspent fee relief funds against any future payments.

18. Communications

18.1 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.

18.2 Provider responsibilities

In addition to documenting fee relief under Section 9.4 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 2026 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.

19. Program objectives and outcomes

19.1 Objectives

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.

19.2 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/or 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.

Quality: the eight principles of the Early Years Learning Framework are embedded in everyday practice of the service, namely:

1. Secure, respectful and reciprocal relationships
2. Partnerships
3. Respect for diversity
4. Aboriginal and/or Torres Strait Islander perspectives
5. Equity, inclusion and high expectations
6. Sustainability
7. Critical reflection and ongoing professional learning
8. Collaborative leadership and teamwork.

19.3 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. Funding rates for Start Strong for Long Day Care are subject to the National Preschool Reform Agreement being finalised by the Australian Government for 2026.

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 2026 and attending an early childhood education program in a long day care setting.

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 2026 will be delivered through the 2026 Start Strong for Long Day Care program.

The target group for the 3YO Fee Relief Trial Payment funded by the Fund is eligible 3-year-old children attending an eligible early childhood education program in a long day care setting.

This program is being delivered on a test and trial basis.

Start Strong for Long Day Care is committed to supporting Aboriginal and/or Torres Strait Islander children. The department’s First Steps Strategy is a commitment to improving access to quality early childhood education for Aboriginal and/or 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/or Torres Strait Islander children in early childhood education to enhance outcomes. This includes ensuring Aboriginal and/or 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/or Torres Strait Islander children
• supporting services to deliver a culturally appropriate transition into early childhood education and primary school programs for Aboriginal and/or Torres Strait Islander children
• ensuring early childhood education services have strong relationships with their local communities.

20. Review and evaluation

The 2026 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.

An evaluation will be undertaken by the department to understand the effectiveness of Start Strong program funding and fee relief in achieving the program outcomes. Providers will be required to participate in evaluation/s of the program through:

• the provision of data, which may include and is not limited to, attendance, absences, child demographic information etc,
• completion of financial accountability statements,
• provision of expenditure records and
• participation in other evaluation activities.

Monitoring the overall performance of Start Strong means the department can determine whether the program is appropriately targeted, if program outputs and outcomes are being achieved, and ensures that any work with providers to enhance early childhood education programs aligns with high quality expectations outlined under the National Quality Framework (NQF).

21. Glossary of terms

Accessibility/Remoteness Index of Australia Plus (ARIA+)

Remoteness Areas are derived from the Accessibility/Remoteness Index of Australia Plus (ARIA+) produced by the University of Adelaide.

Remoteness Areas divide Australia into 5 classes of remoteness based on a measure of relative access to services. The 5 remoteness classes are:

• Major Cities
• Inner Regional
• Outer Regional
• Remote
• Very Remote.

Children eligible for maximum funding

A child is eligible for maximum funding if one of the following criteria is met:

1. All Aboriginal and/or Torres Strait Islander children, or
2. Children that attend a service:

• located in an Inner Regional, Outer Regional, Remote and Very Remote region in NSW based on 2021 Accessibility/Remoteness Index of Australia (ARIA+) produced by the University of Adelaide (Australian Centre for Housing Research) and used by the Australian Bureau of Statistics, or
• 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, or
• operated by an Aboriginal Community Controlled Organisation.

Compulsory schooling

The Education Act 1990 establishes a compulsory schooling obligation upon parents to ensure children of compulsory school age are enrolled and in attendance at a school.

A child is of compulsory school-age where they are of or above the age of 6 years and below the minimum school leaving age as defined by section 21B of the Education Act.

Equity Enrolment

Equity Enrolments are:

1. All Aboriginal and/or Torres Strait Islander children; or
2. Children that attend a service 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.

For-profit provider

A for-profit provider is an organisation or entity that operates an early childhood education and care service that aims to generate profit for its owners or shareholders.

GST exclusive amounts

The funding rates outlined in the guidelines do not include GST. If the provider is GST registered, it will receive funding payments that include GST. If the provider is not GST registered, it will receive payments that do not include GST.

Levies

Levies are additional charges that a service may apply to families on top of regular daily fees. These levies typically cover extras like materials or administrative costs. Levies must be justifiable and services need to retain evidence of the reasons behind them for compliance reviews. Voluntary payments or optional extras such as families choosing to pay for a music lesson or extracurricular activity not required for enrolment are not a levy.

Not-for-profit provider

A not-for-profit provider is an organisation or entity that operates an early childhood education and care service without generating a profit for owners or shareholders. All profit is reinvested into the service, resources and facilities.

Socio-Economic Indexes for Areas (SEIFA)

Socio-Economic Indexes for Areas (SEIFA) is a product that enables the assessment of the welfare of Australian communities. The indexes are produced by the Australian Bureau of Statistics (ABS).

What are deciles?

Area-based deciles are calculated by dividing the areas, ordered by disadvantage, into 10 equally sized groups. Decile 1 contains the top 10% most disadvantaged areas. The department has elected to use deciles based on ranking of socio-economic disadvantage within NSW only. Area-based deciles are easy to interpret as SEIFA is designed and constructed as an area-based measure.

What are Statistical Areas Level 2 (SA2s)?

The ABS developed the Main Structure of the Australian Statistical Geography Standard (ASGS) which is used to release and analyse social, demographic and economic statistics within a functional geographic area.

The structure has seven hierarchical levels, one which includes ‘Statistical Areas Level 2’ (SA2s). SA2s are medium-sized areas that represent a community that interacts together socially and economically.

22. More information, resources 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– 2026 Start Strong for Long Day Care

Our Frequently Asked Questions are coming soon, containing 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 National Quality Standards and Quality Areas

More information is available at:

Australian Children’s Education and Care Quality Authority (ACECQA)

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

More information is available at:

ECCMS frequently asked questions

More information about myID and Relationship Authorisation Manager

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

my website

Relationship Authorisation Manager website

Having trouble with myID and RAM?

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

creating and using myID

using RAM, including importing existing AUSkey users

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 (toll free)

Emailing ecec.funding@det.nsw.edu.au