Goodstart’s not-for-profit model delivers record investment in children, workforce, and social equity

Goodstart Early Learning has marked 15 years since its formation with the release of its 2025 Annual Report, revealing strong performance against its social purpose goals and reaffirming the value of its not-for-profit model.

As Australia’s largest early learning provider, Goodstart reinvests every dollar earned into improving outcomes for children. The 2025 report demonstrates how this model enables system-leading quality, deeper support for vulnerable families, and a stronger, more stable workforce.

In a year marked by sector-wide challenges, including workforce shortages and fluctuating enrolments, Goodstart reported a net surplus of $28.9 million. This will be fully reinvested into its social purpose and a newly launched five-year strategy.

• $65.5 million invested in social purpose initiatives a 14% year-on-year increase
• $77.6 million invested in capital upgrades and five new centres
• Independent modelling by Social Ventures Australia confirms a $5 social return for every $1 invested

Quality assurance remains a defining feature of Goodstart’s practice:

• 99% of centres are rated Meeting or Exceeding the National Quality Standard (sector average: 91%)
• Just 1% are rated Working Towards, compared to 9% across the long day care sector
• A new 3–5 Outcomes Framework was rolled out to guide intentional teaching and support kindergarten readiness
• The 2025–2029 Safeguarding Children Strategy includes award-winning safety training and strengthened child-safe recruitment practices

Goodstart continues to measure quality beyond regulatory requirements, using Quality Rating Scales (QRS) an internationally recognised tool with 70% of centres already rated strong.

Recognising that quality outcomes start with quality educators, Goodstart significantly increased its investment in people:

• $29 million spent on professional development and training in FY25 (up 19% year-on-year)
• First major provider to pass on the full 15% government-funded pay increase—delivered 10% in December 2024
• Educators now paid at least 5% above award, with teachers on parity with state schools
• Employee-initiated turnover reduced to 18%, less than half that of for-profit providers
• 428 new trainees and 423 educators supported through Bachelor of Early Childhood Education studies

Goodstart continues to serve a high proportion of children in communities experiencing disadvantage:

• 37% of centres are in low-SES areas (SEIFA 1–3)
• 39% of enrolled children have one or more risk factors for developmental vulnerability
• Children at risk of abuse or neglect attend four days/week on average, higher than the 3.4-day sector average
• Attendance parity achieved for children experiencing vulnerability and those from Aboriginal and Torres Strait Islander backgrounds

Goodstart also absorbed shortfalls in government funding, including where the Inclusion Support Subsidy (ISS) did not cover the cost of delivering support, ensuring no child missed out on access or inclusion.

The organisation’s second Stretch Reconciliation Action Plan (2024–2027) was launched in FY25, supporting deeper engagement with First Nations children, families and educators.

Goodstart’s research and practice were cited 151 times in the Productivity Commission’s Final Report on Early Childhood Education and Care, reflecting its influence in policy and reform.

The new five-year strategy centres on four key pillars, Inclusion, Quality, People and Advocacy with goals that reflect Goodstart’s enduring social purpose:

• Deliver world-class early learning at scale
• Build the best workforce in the sector
• Strengthen operational capability and infrastructure
• Enable every child to thrive and every family to access high-quality early learning

View the full Goodstart Annual Report 2025 here.