South Australia expands loan scheme to support universal three-year-old preschool

The South Australian Government has announced a significant expansion to its non-government school loans scheme, unlocking an additional $171 million in funding to support the rollout of universal three-year-old preschool across the state.

This latest announcement broadens access to the low-interest loan program beyond non-government schools. It now includes standalone early childhood education and care (ECEC) providers that are not co-located with schools, as well as not-for-profit organisations and system authorities. Eligible entities may apply for loans ranging from $500,000 to $10 million to support infrastructure improvements and increased enrolment capacity.

The expanded loan scheme forms part of the broader $320 million School Loans Scheme, which has already allocated $142 million to 22 capital projects across South Australia. This expansion aligns with recommendations from the Royal Commission into Early Childhood Education and Care and reflects the government’s long-term commitment to improving access to early learning.

“The loans will help services meet future demand, expand capacity and enhance facilities,” said Premier Peter Malinauskas.

“Investing in early learning is not only about preparing children for school, it’s a key pillar of building a more equitable and skilled society,” said the Premier.

Key aims of the scheme include:

• Increasing capacity in growth areas where demand exceeds supply
• Enhancing student retention through improved early learning environments
• Supporting infrastructure upgrades and modernisation

The rollout of universal three-year-old preschool is scheduled to begin in 2026, with implementation occurring in phases across the state.

The initiative is underpinned by a goal to reduce the proportion of children entering school developmentally vulnerable from 23.8% to 15% over the next 20 years. It complements broader reform efforts across access, workforce, and equity in the ECEC sector.

Applications for the expanded loan scheme are open until 31 July 2025. Further details, including eligibility and application guidelines, can be found via the South Australian Government Financing Authority (SAFA) website.

For information on South Australia’s early years strategy and preschool initiatives, visit the Premier of South Australia’s media releases.