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Funding agreement reached on preschools
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Fiona Alston
Dec 09, 2025
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In a timely move welcomed by the early childhood sector, the Albanese Government has acted swiftly to advance national reform efforts and support preschool participation across Australia.
The Albanese Labor Government has struck a preschool funding agreement with the States and Territories, providing funding certainty to the end of 2027.The Preschool Reform Agreement supports the delivery of 15 hours a week, or 600 hours a year, of quality preschool programs for every child in the year before school.
It has a focus on improving preschool participation and outcomes, including for Aboriginal and Torres Strait Islander children and children experiencing disadvantage.
The Preschool Reform Agreement also continues the rollout of the Preschool Outcomes Measure, which supports teachers and educators to better understand a child’s learning and development needs.
“We know that quality preschool helps children prepare to thrive at school and in the years beyond,” said Minister for Early Childhood Education Jess Walsh.
The Albanese Labor Government has worked collaboratively with the States and Territories to deliver this agreement on time.
It went to the Education Ministers Meeting in October and was agreed in principle by all States and Territories.
Minister for Early Childhood Education, Jess Walsh, then wrote to Early Education Ministers with a formal offer.
Western Australia, South Australia, the Northern Territory, and the Australian Capital Territory have now signed, which means the agreement will come into effect for these jurisdictions allowing Australian Government funding to flow, with others to follow.
“I am so pleased we’ve been able to deliver funding certainty to ensure Australian children can attend preschool, giving them the best possible start in life,” Minister Walsh said.
This extension will bring the Australian Government’s contribution to over $3 billion over the life of the agreement.
“The Agreement is delivering on its objectives to strengthen the delivery of preschool education, ensuring children are better prepared for their first year of school. Minister Walsh said.
At the Education Ministers Meeting, Ministers also agreed to continue to work together on future reforms beyond the end of this extended agreement, to help build a quality, universal early education and care system.
Children who engage in quality preschool programs are generally better prepared for when they start primary school, and also as they progress through life.
“I’d like to thank my State and Territory colleagues for working collaboratively with us to make this happen.” Minister Walsh said.
This extension represents a $3 billion investment in Australia’s preschool landscape and delivers much-needed certainty for services, educators and families. By prioritising participation and outcomes, particularly for First Nations children and those experiencing disadvantage, the agreement helps to build a stronger foundation for lifelong learning.
The early childhood education and care (ECEC) sector has welcomed the funding as a significant step towards a more inclusive, high-quality and cohesive early learning system, and remains a key partner in shaping reforms beyond 2027.
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