$36 million reform to bolster attraction and retention of preschool and school leaders in South Australia

A major reform announced by the South Australian Government aims to redesign leadership remuneration across the public education system, offering a clearer, more equitable structure for principals and preschool directors, and signalling recognition of the complexity of early‑childhood leadership.

On 17 November 2025, the Government of South Australia released a statement confirming that some 699 school principals and preschool directors will benefit from a significant pay rise under a $36.2 million reform package. 

The existing nine‑level classification system will be replaced by a streamlined six‑level model from next year, with remuneration tied to the complexity of the site rather than purely its size. 

Under this reform, leaders will receive an average annual increase of approximately $8,679, in addition to the four‑per‑cent pay rises already scheduled for 2024 and 2025 and a three‑per‑cent increase next year. 

The reforms were developed in collaboration with the Australian Education Union and stakeholder associations, aiming to bring greater equity across the system, especially for leaders at more complex sites. The redesign will also reduce uncertainty: historically, up to 40 per cent of sites moved classification levels each year under the previous model. 

In addition to pay‑reform, the statement highlights other support measures: 10‑year contracts for leaders, reduced administrative burden, enhanced ability to manage aggressive parent behaviour, and a broader investment of $1.6 billion under the current enterprise bargaining agreement. 

For service owners, approved providers, centre managers and educators in early childhood settings, this reform offers several key take‑aways:

• The explicit recognition of preschool directors in the new leadership classification reflects the increasing complexity and importance of preschool leadership.
• As leadership roles are better rewarded and supported, there may be improved stability in management personnel, which can positively influence service culture, educator retention and children’s continuity of care.
• Providers should monitor changes to leadership contracts and classification criteria, and ensure that centre‑based leadership development and succession planning align with the evolving landscape.
• The reform underlines the value the government places on leadership in early years settings; services may wish to leverage this momentum in advocating for leadership support, mentoring and professional development within their own frameworks.
• Given the link between quality leadership and strong practices (for example, in relation to the National Quality Standard’s Quality Area 7: Governance and Leadership), providers may strengthen their own systems to reflect and embed the newly acknowledged complexity of leadership roles.

This $36 million leadership reform emphasises the strategic importance of high‑quality leadership across both school and preschool settings in South Australia. By redesigning classification, increasing remuneration and aligning support mechanisms, the Government is placing renewed focus on attracting and retaining leaders capable of driving excellence in early childhood and school settings alike. For the early‑childhood sector, this presents both an acknowledgment of the field’s significance and an impetus for ongoing investment in leadership capability.