Deal secures $840m in preschool funding for families

NSW is the first State to agree to a new deal that delivers access to early childhood education for every child in the year before they start school.

Two young girls playing at a table.

Families with young children in NSW will have better access to high-quality pre-school and early childhood education due to an historic agreement between the Commonwealth and NSW governments.

The new National Preschool Reform Agreement, with NSW as its first signatory, ensures every child will receive high-quality education in the year before school, regardless of where they live or their background.

Acting Federal Minister for Education and Youth Stuart Robert said the agreement would ensure children in NSW had access to quality preschool options and were better prepared for their first year of school.

“This funding agreement provides certainty to parents, educators and the sector throughout NSW,” Mr Robert said.

“It will help every child in NSW- about 400,000 children over four years - have the opportunity to attend at least 15 hours of preschool a week in the year before they start school.”

The Commonwealth Government has committed $560 million of new funding with more than $280 million from the NSW Government to support the four-year funding deal.

The NSW Government will also increase the quality of preschool and long day-care education by delivering targeted programs for children who experience disadvantage.

NSW Treasurer Matt Kean said the State’s most important economic asset was its people and there was no better way to ensure a prosperous future than to make sure everyone had the best possible education and start to life.

“We want every child in NSW to have the best start in life and every family the support they need to fully participate in the workforce,” Mr Kean said.

“Investing in our people, our families and our kids will help us grow today’s economy by increasing workforce participation rates and it will help our future prosperity by giving our kids the best possible start in life.

“This is a game-changing deal for families in NSW, providing parents and carers the freedom to participate in the workforce in ways that better suit their needs.”

Funding will be linked to reforms to increase preschool participation rates and improve outcomes, benefiting all children regardless of the type of preschool they attend.

In NSW increased funding to long day care would also allow a greater focus on quality and support for children’s transition to school.

There would also be an increased focus on engagement of children and families, particularly from vulnerable and disadvantaged backgrounds, to help them have a happy, safe and supported preschool experience and a stronger start in life.

NSW Minister for Education and Early Childhood Learning Sarah Mitchell said the new funding deal would provide stability to the sector and provide more access to early childhood education for young children.

“Every child deserves the best start in life, and this reform means more children will have access to a quality preschool education right across NSW,” Ms Mitchell said.

“This agreement builds on our commitment to support young families through our free preschool program, which we know has made a positive impact across NSW.

“By boosting funding for long day-care services to provide high-quality preschool programs, families will get more flexibility and choice when it comes to early education for their child.”

The historic signing means the Preschool Reform Agreement 2022-2025 is now a National Partnership and the Commonwealth welcomes other states signing on ahead of the 2022 preschool year.

The Commonwealth has guaranteed ongoing funding for preschools and this four-year agreement provides long-term certainty to around 300,000 Australian children and their families each year, along with the early childhood education sector.

The Commonwealth’s historic investment in early childhood education also includes around $10 billion a year through the child-care system to reduce out-of-pocket expenses for families using child care and improve workforce participation.


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