Securing the future: What the NSW community services jobs compact means for early childhood education

Early childhood education and care (ECEC) services across New South Wales are set to benefit from a landmark reform that brings long-term funding stability and improved job security to the broader community services sector. Announced in January 2026, the NSW Government’s new Community Services Funding Framework and Community Services Jobs Compact will reshape how the government supports frontline services, including those working with children and families.

The Minns Labor Government’s initiative delivers on its Secure Jobs and Funding Certainty election commitment, addressing long-standing sector concerns around short-term contracts, workforce turnover and the administrative burden of piecemeal funding.

Many ECEC services, particularly not-for-profit preschools, family support programs, integrated child and family centres, and those providing wraparound support for vulnerable families, rely on government funding to deliver services. Historically, this funding has been short-term and insecure, limiting the ability of providers to plan, retain qualified staff or invest in long-term quality outcomes.

Who in early childhood could benefit?

This reform is especially relevant for community-based early childhood services that operate within or alongside the broader community services sector. These include:

• Community early learning centres
• Not-for-profit child care cooperatives
• Family support and playgroup services
• Neighbourhood centres offering early childhood programs

These organisations often face funding uncertainty, making it difficult to plan ahead or sustain their workforce. The move to default five-year contracts allows providers to maintain consistent, high-quality programs and build long-term, trust-based relationships with families.

For example, peak organisations such as the Community Child Care Co-operative (NSW) have long advocated for improved funding certainty and workforce stability, both of which are directly addressed under the new framework.

Key elements of the reform:

• 7,800 organisations will receive default five-year funding contracts.
• More than 240,000 community sector workers, including those in child and family programs, will benefit from secure, ongoing employment.
• The government will set clear expectations around outcomes and performance, improving accountability for public investment.

Minister for Families and Communities, Kate Washington, highlighted the importance of stable relationships in service delivery:

“Every day, community sector workers show up for children, families, and vulnerable people across NSW. They deserve security of employment so they can keep doing their vital work with confidence. This is the type of work where relationships matter. When there’s a revolving door of workers, outcomes are worse for everyone.”

The Department of Communities and Justice (DCJ) noted the reforms are designed to support consistent, high-quality service provision by providing clarity and confidence to the sector.

The Australian Services Union has welcomed the Compact as a nation-first, linking long-term funding to secure, permanent employment. The NSW Council of Social Service (NCOSS) similarly commended the changes, noting the shift will allow organisations to invest in workforce development and long-term outcomes.

Implications for ECEC services:

Early childhood education and care services in NSW can now:

• Explore eligibility for five-year contracts under the Community Services Funding Framework
• Review their classification under DCJ’s child and family program categories
• Align this funding certainty with the implementation of the 2026 NQF child safety reforms
• Leverage improved job security to retain and attract qualified educators and staff

With growing expectations for accountability, child safety and quality improvement, this reform provides a solid foundation for sustainable growth, workforce development and consistent service delivery in the early years.

For more information, read the official media release from the NSW Department of Communities and Justice: NSW Government delivers nation-leading community service agreement and visit the Secure Jobs and Funding Certainty for Community Services page.