NSW Government invests in expansion of quality and accessible childcare

The NSW Government has committed $100 million over two years to support community preschools to grow their capacity, extend operating hours, and increase availability for working families. This forms a key part of its ongoing early learning reforms.

Key Components of the Investment

• Expanding Quality Access Program: This new program will provide grants to eligible not‑for‑profit preschools to:
  • Open for longer hours (beyond the existing 9 am–3 pm window)
  • Operate more days per week. 
  • Serve a broader age range (from birth to school‑age), rather than just preschool‑aged children. 
  • Upgrade facilities, improve IT and administration, and build workforce capability to handle expanded services. 

• Sector Rebalancing:
  The government aims to support not‑for‑profit providers, which currently make up a smaller share of the early childhood sector relative to for‑profit providers. Over the past decade, for‑profit providers have grown by 90%, and now represent 58% of the approximately 6,300 early childhood services in NSW. 

• Regulatory Reforms:
  The investment coincides with recent legislation enhancing safety, wellbeing, and transparency in early learning. Notable reforms include:
  • Enshrining that the rights and best interests of children must come first in law. 
  • Increasing fines for non‑compliance: a 300% increase for standard services, and 900% for large providers operating 25 or more services. 
  • Requirement that providers display their compliance history and details of any ongoing investigations. 

• Further Public Preschool Expansion:
  Parallel to this funding, the government has committed to build 100 new public preschools, which will double the number of public preschools in NSW and deliver up to 9,000 additional preschool places. 

Applications for the Expanding Quality Access Program will open in November 2025. 

Community preschools interested in expanding services should prepare to assess facility needs, staff capacity, and possibly age range adjustments.

Stakeholders in the sector (providers, peak bodies, educators) may need to engage with the government to clarify eligibility, implementation guidelines, and support for workforce development.

The NSW Government’s $100 million investment signals a significant step toward more accessible, high‑quality early childhood education. By enabling community preschools to extend hours, increase service days, expand age ranges, and improve infrastructure and workforce capability, the initiative has the potential to reshape how families access early learning. Coupled with stronger regulatory oversight, the reforms aim to build trust and ensure children’s rights and wellbeing are central. The challenge will be in effective implementation, ensuring sufficient provider capacity, and maintaining quality during expansion.