NSW invests in co-located public preschools to improve early learning access and transitions

The Minns Labor Government will deliver a record $9 billion over four years for school infrastructure as part of the 2025–26 Budget continuing its commitment to rebuilding public education in NSW. 

Of this, $2.6 billion is earmarked for the coming financial year alone, supporting a record pipeline of new and upgraded schools across the state. 

This initiative aims to create a smoother, more integrated educational journey for children and families supporting transitions, improving access, and responding to demand in growing communities.

A co-located model focused on continuity

By placing preschools on public school sites, the government aims to strengthen the continuity between early learning and primary education. These co-located settings support smoother transitions for children, encourage shared professional development between early childhood and primary educators, and reduce logistical burdens for families particularly those managing multiple drop-offs and pick-ups.

This approach builds on the success of similar models in other jurisdictions, such as Victoria, where public preschools attached to schools have become a key part of that state’s universal Pre-Prep reform.

Implications for long day care services

While the policy has clear benefits for children and families, the expansion of government-run preschool programs particularly in co-located sites has significant implications for the broader early childhood sector, including approved long day care (LDC) providers.

Key considerations include:

Shifting enrolment patterns: Families may choose to move children to a free or subsidised public preschool if it is co-located with a school their child will eventually attend. This could impact enrolments and funding viability for community and privately-run LDCs that currently offer sessional preschool or integrated kindergarten programs.

Staffing and workforce pressures: With more government-funded preschools coming online, competition for qualified early childhood teachers and educators may intensify, especially in regions already facing workforce shortages.

Policy and funding alignment: There may be questions about how the new public preschools will be integrated into the existing universal access to preschool framework, and how they interact with LDC services that already deliver preschool under that arrangement.

Opportunity for collaboration: Co-located public preschools could also open pathways for collaboration between schools and LDCs, such as transition planning, shared PD opportunities or resource-sharing at a local level.

As the landscape shifts, it will be vital for governments to consult with the LDC sector to ensure policies are designed in a way that promotes equity and choice for families, while maintaining the viability of the diverse services that make up Australia’s early learning system.

The NSW Department of Education is prioritising delivery in areas with the greatest unmet demand, using data on population growth, child development outcomes and community consultation. 

For more details, including confirmed and proposed locations, visit here.