Loan scheme expands to support three-year-old preschool rollout in SA

The South Australian Government has expanded its School Loans Scheme to include infrastructure projects for standalone preschools, including those not located on school sites. The change forms part of preparations for the planned rollout of three-year-old preschool from 2026.

An additional $171 million will be made available through the scheme. Not-for-profit ECEC providers, non-government schools and system authorities can apply for low-interest loans ranging from $500,000 to $10 million.

“The expansion will help early childhood providers upgrade their facilities ahead of the three-year-old preschool rollout,” Treasurer Stephen Mullighan said.

To be eligible, projects must support at least one of the following goals:

• increase preschool enrolment capacity in areas of demand
• support student retention
• modernise existing facilities.

The loan scheme sits within the Government’s broader $320 million School Loans Scheme, which has already delivered $142 million in loans across 22 projects.

“We are rolling out three-year-old preschool from next year and these loans will ensure preschools have the infrastructure ready to go,” said Education Minister Blair Boyer.

“This is another step in our commitment to early intervention and providing every child with the best possible start.”

The updated eligibility criteria were developed in partnership with the South Australian Government Financing Authority, the Office for Early Childhood Development and the Department for Education. The focus is on ensuring providers are well positioned to meet growing demand in the lead-up to universal preschool access.

Preschool for three-year-olds was a key recommendation of the Royal Commission into Early Childhood Education and Care, and is part of the Government’s 20-year goal to reduce the proportion of developmentally vulnerable children at school entry from 23.8 per cent to 15 per cent.

“This work continues to provide support to the sector to ensure the best outcomes for a generation of South Australian children, some of whom are yet to be born,” Mr Boyer added.

Applications for the scheme are now open and will close on 31 July 2025.