NSW Liberals and Nationals pledge to restore Start Strong preschool funding

The NSW Liberals and Nationals have committed to returning funding for the Start Strong program for community preschools, plus funding for preschool programs for approved long day care services if elected.

In a joint statement, Opposition Leader Kellie Sloane said a Coalition government would “reverse Labor’s cuts to the Start Strong funding arrangements for both community preschools and long day care services”.

The statement was issued with Nationals Leader Gurmesh Singh and Shadow Minister for Early Education Felicity Wilson in response to funding changes commencing in January 2027.

The announcement follows a separate commitment in Victoria. Speaking at an early childhood sector forum, Victorian Shadow Minister for Education Brad Rowswell said a Liberal government would retain Free Kinder and review the structure of the early learning industry.

Restoring program funding and negotiating educator pay

If elected, the Opposition would replace the Government’s new funding model for community preschools and restore Start Strong payments supporting preschool programs in approved long day care services.

The commitment includes negotiating in good faith with community preschool educators on a fair pay increase.

The Opposition also said it would ensure appropriate allocation of the existing $5 billion Childcare and Economic Opportunity Fund to meet children’s and families’ early learning needs.

Mr Singh warned that regional families may have few alternatives if their local preschool becomes financially unviable. Ms Wilson said families, educators and providers had raised concerns about quality, affordability and choice.

Government says reforms will improve access and affordability

The NSW Government says the new Universal Preschool Funding will provide a more equitable and sustainable funding model. This includes increasing three-year old places by fully funding them and supporting services to increase enrolments.

The combined funding from Universal Preschool Funding and Inclusion Funding Program will be between $584-642 million in 2027.

A further $255 million funding package has been announced to provide eligible families with up to $2,625 per child in 2027. This will see participating services deliver preschool programs. This will help reduce family fees.

Election pledge leaves January funding arrangements unchanged

This promise from the opposition is an election promise. This does not change anything for providers who are currently preparing for the changes from the 1st January 2027.

There is no mention of when the Start Strong funding will be returned. There is also no specifics regarding what rate the funding will be returned at. This means providers wouldn’t know how this would personally affect their services.

Providers will still need to understand how much they will be receiving from the Government in 2027 for next year's staffing, enrolments and budgets. Whether this funding is returned will depend on the outcome of the election.

Read the NSW Opposition’s statement, the NSW Government’s funding announcement and watch the Victorian sector forum.