Building early education fund to expand ECEC access in underserved communities

The Australian Government has announced a $1 billion investment through the new Building Early Education Fund (BEEF), aimed at increasing access to early childhood education and care (ECEC) services in communities where demand for places currently outstrips supply.

The fund, announced as part of the 2025–26 Budget, is designed to support the development of new and expanded early learning centres, with a focus on outer suburbs, regional and remote locations, and areas experiencing disadvantage.

The Building Early Education Fund will support capital infrastructure projects by providing:

• Capital grants to eligible not-for-profit providers to build or expand ECEC services
• Support for a build-own-lease model, where the Government funds and owns the facility, and leases it to approved providers
• Increased availability of early learning places, supporting the Government’s broader goal of providing access to three days of subsidised early learning per week

The fund is part of a broader effort to establish a more universal early childhood education system and improve affordability and access for families.

The Australian Government is seeking input from early childhood education and care providers through a market sounding process currently underway. This consultation aims to gather feedback on sector capacity, local demand, delivery challenges and interest in participating in future funding rounds.

The process is not a formal grant application but will help shape the fund’s design, including eligibility criteria and funding models. The department is particularly interested in insights from providers operating in high-growth and underserved areas, as well as those with experience in service delivery under the National Quality Framework.

Feedback received will inform future design of the fund, including eligibility criteria, funding models and delivery approaches. The current market sounding includes a round focused on small-scale centre-based day care services, closing at 5pm AEDT on 18 December 2025.

Investment will prioritise locations where current supply is limited and demand is high, particularly in:

• Outer metropolitan growth corridors
• Regional and rural communities
• Communities with a high proportion of children experiencing disadvantage

In addition to standalone services, the fund is expected to support the development of integrated early childhood and family hubs. These hubs may include allied services such as maternal and child health, family support and transition-to-school programs.

Sector stakeholders have emphasised the importance of:

• Ensuring funding reaches high-need communities
• Supporting the Aboriginal and Torres Strait Islander Community Controlled sector
• Pairing infrastructure investment with ongoing operational funding and workforce support

The fund is open to not-for-profit organisations and may include opportunities for local governments and First Nations-led services. Providers with experience under the National Quality Framework and Child Care Subsidy scheme are particularly encouraged to participate in the market sounding phase.

Interested providers are encouraged to:

• Respond to the market sounding by the closing date
• Review eligibility information on the Department of Education website
• Assess their capacity to deliver new or expanded ECEC services, including location suitability, demand, workforce availability and readiness

Further information and access to the market sounding documents is available via the Department of Education’s official site 

Survey closes 5:00pm AEDT 18 December 2025.