NSW 2025 Budget holds few surprises as 100 preschool build and fee relief pledges maintained

The New South Wales FY25 Budget has been released in which pledges detailed in Premier Chris Minns’ inaugural FY2024 budget (released in September 2023) have been maintained with a focus on creating new preschools and building on Start Strong funding standing out. 

“This investment in the early childhood sector is the largest made by any NSW government and demonstrates our commitment to giving children around the state the best educational start in life,” Deputy Premier and Minister for Education and Early Learning Prue Car said.

“Improving equity in access to early education and care across NSW is vital for young families, and ensures our youngest learners are given every opportunity to thrive.”

The key highlights of the 2024-25 Budget are as follows:

1. Increasing the number of preschool places in NSW

Consistent with pledges made in 2023 the 2024-25 Budget maintains pledges to invest heavily in the development of new preschools across the state with the following funds earmarked for the initiative:

• $769 million for 100 new preschools on public school sites
• $60 million towards new and upgraded non-government preschools
• $20 million to support the growth of not-for-profit ECEC services in high demand areas

It is understood that the policy initiatives aim to boost the number of stand alone, publicly owned preschools currently operating in NSW, with the investment expected to double the current stock by 2027 and in so doing add 9,000 places. 

There are currently 762 stand alone preschools operating in NSW although it is unclear how many of these are Government owned. 

2. Building on preschool fee relief for families in NSW

From an affordability and accessibility perspective the 2024-25 Budget included measures designed to support families with the cost of preschool and also increase access to preschool via a new flexibility initiative as follows:

• $4,220 per year in fee relief for 3 to 5 year olds attending eligible programs
• $20 million into a two-year Flexible Initiatives Trial to expand access

It is understood that the Start Strong funding program platforms will be the primary system to distribute these funds to early childhood education and care (ECEC) services with $481 million earmarked to finance the commitments.

3. Maintaining prior ECEC workforce pledges

Consistent with the 2023-24 Budget the NSW Government has earmarked funds to support the ECEC workforce as well as extending a new commitment to build business capability in the sector via the following initiatives: 

• $29.1 million for professional development and scholarships for educators
• $5.3 million for the business capability development program 
• $10.0 million partnership with TAFE NSW to support access to professional learning

This year’s Budget will cover expenditure for the 12 months ended June 2025. To review the Budget papers please click here.