Renewed confidence in ECEC thanks to Government investment, Burgess Rawson notes

With both major political parties making strong commitments to strengthening Australia’s early education sector in their 2025 Budget proposals Burgess Rawson Director of Childcare Michael Vanstone believes the ongoing support for the childcare sector is likely to bolster its growth and attract significant investment. 

“Both Labor and the Liberal Party have recognised the importance of early education and childcare,” he said. 

The Labor government’s increased investment in the sector has been a key focus, with a strong emphasis on improving affordability, accessibility, and workforce retention. At the same time, the Liberal Party has outlined its plans for improving childcare services, focusing on market-driven solutions and fiscal sustainability.

“While their strategies differ, there is common ground on the value of the sector. The increased investment and policy attention are expected to drive further demand for early learning properties, reinforcing their appeal to long-term investors,” Mr Vanstone added.

Recapping major commitments

The recent 2025 Federal Budget, delivered by Treasurer Jim Chalmers, underscores Labor’s commitment to the early childhood sector, outlining key initiatives to drive growth. Among the major measures is the Three Day Guarantee Program, which will provide families with three days of subsidised childcare per week, starting in January 2026. 

This initiative, funded with $426.6 million over five years, will benefit approximately 100,000 families, reducing financial barriers and improving access to early education, ultimately increasing demand.

Another significant allocation is the Worker Retention Payment, with $3.6 billion designated to increase wages for early childhood educators. This program aims to retain up to 200,000 workers, addressing the critical workforce shortages and ensuring a high standard of care in the sector. 

The Building Early Education Fund also stands out, with $1 billion set aside to expand early education services, particularly in high-demand areas.

Investor confidence growing

Mr Vanstone said the government funding initiatives are already boosting investor confidence in the childcare sector.

Already in 2025 Mr Vanstone has sold several early education centres, including Young Academics in Seven Hills for $5.86 million at a 4.44 per cent yield, Little Kindy in Walcha, NSW for $2.19 million at a 5.19 per cent yield, Discover & Learn Academy in Tanilba Bay for $4.8 million at a 6.16 per cent yield.

Recently he has also sold the Merrylands Advanced Early Learning centre, for $7.4 million at a 4.33 per cent yield, and Woongarrah Early Learning Centre, also sold for $7.46 million at a 6.04 per cent. The Baulkham Hills childcare centre recently sold for $4,945,000 at a 4.25 per cent yield, reinforcing the strong demand for premium early education assets. 

These transactions highlight the strength and stability of the early education property market, with investors showing increasing confidence in the sector in both metro and regional locations, he explained.

“Regardless of the election outcome, the childcare sector’s continued importance and the government’s commitment to its expansion signal a promising future for early learning investments,” Mr Vanstone added, noting that both political parties recognise that investing in early education is not only crucial for families but is also a key driver of economic growth, enabling greater workforce participation and supporting children’s long-term development.