First grants under $1 billion early education fund support not-for-profit expansion

Goodstart, REED and SDN will deliver up to 215 additional early learning places through new centres and expansions in four states.

The Australian Government has signed the first four agreements under the large-scale grant round of its $1 billion Building Early Education Fund, supporting early learning expansion in communities experiencing shortages of services.

Two new centres will be built in Lalor, Victoria, and Trevallyn, Tasmania, while existing services in Merredin, Western Australia, and Bathurst, New South Wales, will be expanded.

Together, the projects are expected to create up to 215 additional early childhood education and care (ECEC) places. The grant round focuses on large not-for-profit providers with demonstrated experience delivering quality services. 

Goodstart Early Learning will operate the new Lalor and Trevallyn services, with the Australian Government fully funding construction.

The Lalor project will receive $5.9 million and is expected to accommodate up to 87 places. Construction is scheduled to begin in late 2027, with an estimated opening in early 2029.

The Trevallyn project will receive $6.8 million and provide up to 69 places. Construction is expected to commence later in 2026, with the service estimated to open in early 2028.

Goodstart Chief Executive Officer Dr Ros Baxter said both communities had significant unmet demand for early learning. Goodstart will contribute through land acquisition and overall project management. 

In Merredin, Regional Early Education & Development (REED) will receive $3.3 million to expand its existing centre-based day care service.

The project will add 35 places, increasing capacity to 71. Construction is expected to begin in early 2027, with the expanded service opening later that year.

In Bathurst, the Australian Government will provide $1.3 million towards the expansion of SDN Hamilton St. SDN Children’s Services will contribute a further $143,040.

The expansion will add 24 places, increasing capacity from 52 to 76. Construction is expected to commence in the second half of 2027, with opening anticipated by the

The Building Early Education Fund provides capital investment to build and expand services where additional ECEC capacity is needed, including regional communities and outer suburbs.

The Department of Education identifies a particular focus on communities experiencing vulnerability and disadvantage. Priority areas are informed by data on supply and need, consultation with communities, and engagement with governments and peak bodies.

The fund includes $500 million for building and expanding services and another $500 million set aside for future investment in Australian Government-owned and leased services. Further business-case work will inform decisions about the ownership and leasing approach. 

The four projects represent the first agreements under the large-scale grant round, with more expected to be announced in coming months.

For providers and communities, the announcement establishes a pipeline of new and expanded services, with delivery scheduled between 2027 and 2029. The additional places will become available as each project is completed.

Further information is available through the Minister’s announcement and the Department of Education’s project update.