Preschool funding protests grow as services forecast steep losses

Community preschool teachers and educators will rally in Nowra NSW today over projected funding losses under the NSW Government’s 2027 Universal Preschool Funding model. 

The Independent Education Union of Australia NSW/ACT Branch says six local and neighbouring preschools anticipate reductions, including a $290,000 decrease at Shoalhaven Community Preschool.

The union says members calculated the estimates using the government’s funding tool and the Branch Secretary Carol Matthews said services faced rising costs while preparing to implement the new arrangements.

“After two years of talks with the NSW government, our members are shocked and angry that their preschools and livelihoods are at risk,” Ms Matthews said, “Any decrease in funding may lead to pay freezes and job losses for teachers and educators amid rising unemployment and a cost-of-living crisis.”

Settled enrolments limit options for services

Alongside Shoalhaven’s estimate, the union reports projected reductions at Lyrebird, Kiama, Berry, Jamberoo and Milton Ulladulla preschools. Those estimates range from $20,000 to $197,000.

The union says preschools have already settled their enrolments for 2027 and many are not licensed to enrol additional children. They argued that services therefore have limited capacity to respond to funding changes by increasing enrolments.

The figures supplied are member estimates, rather than final allocations confirmed by the department. The alert does not specify whether they include the one-off transition funding available to eligible services, or identify confirmed staffing reductions at the named preschools.

Government points to increased funding and transition arrangements

The NSW Government says combined funding through Universal Preschool Funding and the Inclusion Funding Program will range from $584 million to $642 million in 2027, compared with $540 million to $625 million in 2026. It says the reforms will fully fund three-year-old places and support additional enrolments across community preschools.

The published guidelines provide one-off transition funding for eligible services facing a reduction between their 2026 funding and calculated 2027 allocation. Payments are aimed to account for operational changes and cover a proportion of the funding difference, rather than automatically replacing the entire shortfall.

The union is calling on the government to revise the program to protect jobs and continuity of services. Its campaign will continue on 13 November, with a protest planned outside Skills, TAFE and Tertiary Education Minister Steve Whan’s Queanbeyan office.

Read the government’s explanation of the funding reforms here.