New Preschool Funding beginning 2022/2023

The Federal Government's announcement in May 2021 effectively meant that NSW long daycare services will receive an increase of between 51.4% and 328%, courtesy of the Commonwealth's new 5-year Universal Access funding agreement. One of its key new features will be that such new funding must follow the child.

Currently, NSW long daycare services receive $313-$885 per child per year for those children in their year-before-school under the Start Strong funding. Most commonly, that would be about $469 per child per year.

According to the new agreement just signed by the NSW Government on 6 December 2021, the new per-child funding amounts are anticipated to be:

• 2022 - $1,345.54
• 2023 - $1,377.83
• 2024 - $1,410.90
• 2025 - $1,444.76

This agreement corrects an unfairness that has existed for many years in NSW, especially when compared to the arrangements fulfilled in other states' long daycare services. 

That said, the 2022 calendar year will see the NSW Department of Education presenting and engaging with NSW services about the details of this new agreement, in particular the following that are yet to be finalised:

1. the Preschool Outcomes Measure (to be agreed by the end of 2022); and
2. the Preschool Outcomes Measure implementation (by 2024). 

The Australian Childcare Alliance (ACA) NSW has offered to the NSW Department of Education the opportunity to engage with members and non-members via live and interactive ACA NSW Network Meetings during 2022.

Some of the immediately apparent questions are:

• the defining of what preschool outcomes are to be measured (including how such outcomes can be visible across different settings so as to emulate (the best of) them in local settings);
• the level of operational/regulatory load to fulfil the new funding agreement relative to the funding received; 
• the timing of the receiving of funding across each year from the NSW Department of Education;
• the accuracy and consequences of recording and reporting attendance by certain setting(s) as well as the data capture of attendance data across other settings; 
• the range of options of using the funding (including reducing out-of-pocket fees for families);
• the limits (if any) of using the funding to improve quality such as through the provision of early childhood teachers; and
• the consequences of not achieving 90%-95% participation of the proportion of eligible children.

In the meantime, should any member require further information/clarification, please do not hesitate to contact ACA NSW via 1300 556 330 or nsw@childcarealliance.org.au.

PUBLISHED: 9 DECEMBER 2021