At the same time, the government says it will expand access to early childhood education across the state.
While the proposed switch from the Start Strong program has raised concerns of funding cuts from regional community preschools, the government says the new model will provide fairer and more sustainable funding while making preschool more affordable for families.
“The Universal Preschool program ensures fairer, more consistent and sustainable funding, so families across NSW, including in regional areas, can access high quality, affordable early learning,” a NSW Department of Education said.
“Importantly, both three and four year-old children are fully funded for the first time, and the new guidelines cap preschool program fees at their current rate or a maximum of $20 per day.
“The new guidelines also mandate above-award wages for the first time.”
Total funding available through the Universal Preschool Funding Program and Inclusion Funding Program is expected to increase to between $584 million and $642 million in 2027, up from $540 million to $625 million this year.
The new model is intended to fund community preschools based on expected operating and workforce costs, including staffing requirements, award wages and the costs of delivering safe and inclusive early learning programs.
Initial funding allocations, including transition funding, will be released in late November.
Services whose circumstances change during 2027 may seek a funding review, with payments adjusted according to factors such as enrolments, hours of preschool provided and the needs of children attending.
The Department has encouraged services needing help to maximise their funding to contact departmental staff.
The rollout comes as some community preschool providers continue to voice concerns about how the new funding formula will affect individual services, despite the overall increase in government investment.
The NSW Government said participating preschools must meet strict regulatory requirements and noted child safety and provider accountability remain key priorities.
While the new guidelines require above-award wages to be built into funding calculations, individual community preschools will remain responsible for staffing decisions, salaries and meeting regulatory staffing ratios.
The NSW Department of Education has been asked to respond to specific concerns raised by local early education providers. An update is expected to appear in Friday’s PT.
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