Concerns with 100+50 new preschools

ACA NSW continues to believe and strive for all children to benefit from quality early childhood education and care. And we continue to be committed to working with all governments to achieve this goal.

Members would have received the NSW Labor Government’s $769m announcement to achieve 100 new preschools co-located with public schools within the first four years (2023-2027). This amount is not for an additional 50 new independent preschools also within the same first four years.

ACA NSW had received NSW Labor's clarification on 24 June 2022 that reassured existing early childhood education and care services that NSW Labor recognises “oversupply currently exists in a number of areas”, and their plan “will be targeted to areas with identified genuine need of additional preschools”.

Additional reassurances were also given in the new NSW Deputy Premier's video broadcast on 19 June 2023 to existing NSW’s early childhood education and care sector that the NSW Labor Government’s 100 new preschools on school sites would be implemented:

“... based on need”; and

“... without cannibalising existing other services”; and

“... doesn't take away from existing services”; and

“... not about cannibalising services”.

However, following discussions with the NSW Department of Education as well as the NSW Independent Pricing and Regulatory Tribunal (IPART) thus far, and given their announcement of the first 10 sites for 100 new preschools on school sites, ACA NSW is very concerned that the NSW Government:

1. does not have an agreed nor public definition of undersupply;
2. does not yet have access to nor a consensus range of reliable data sources that will ascertain existing and estimate future supply and demand;
3. has not yet determined a reasonable, consistent and transparent methodology to identify areas of true undersupply; and
4. will create or exacerbate oversupply of early childhood education and care services.

ACA NSW believes one of the NSW Government’s motivations to improve outcomes for all preschool children emanates from public concerns made by the NSW Department of Education since September 2022 that “2 in 5 NSW children are not developmentally on track when they start school”. And it should also be noted that the source of this concern comes from the Australian Early Development Census (AEDC) which also shows similar results throughout its lifespan (ie 2009 to 2023).

Yet, neither the NSW Department of Education nor any other Australian regulator for early childhood education and care has suggested nor proposed any systemic changes to the existing National Quality Framework, the National Law nor National Regulations since their introduction in January 2012 that would positively improve children’s outcomes in light of their same public concerns, especially the AEDC results.

As such, without any systemic differences, how will the NSW Government guarantee that the children who experience early childhood education and care in these 100 new preschools will have superior outcomes for children when they start school compared to similar cohorts who have had early childhood education and care outside of these 100+50 preschools?

ACA NSW has offered to work with the NSW Department of Education and other representatives to:

1. identify and recommend processes to access the necessary, appropriate and reliable data sources in order to calculate and estimate true supply and demand;
2. recommend and develop algorithms to ascertain and forecast areas of true undersupply while taking into account local demographic aspects; and
3. harmonise the above with the existing and future supply of qualified early childhood educators and teachers as required by the NSW Government’s regulatory framework.

It is important to note that without this approach, the NSW Government risks being complicit in creating, if not exacerbating, oversupply of early childhood education and care services. And according to the ACCC Interim Report (see Figure 2.15) dated July 2023, fees increase by up to 40% relative to increases in supply which would be at the expense of parents ultimately.

Likewise, without the abovementioned approach, existing and affected early childhood education and care services would see qualified educators and leave for these new preschools, or worse, see the NSW Deputy Premier's concerns expressed on 19 June 2023 become reinforced, such that “we have too many great teachers and early learning educators leaving”.

And given NSW’s stricter educators and qualifications to children requirements as confirmed by the NSW Productivity Commissioner in December 2022, the current worsening labour shortages would mean losses of early childhood educators and teachers from affected services to these 100+50 new preschools can effectively mean reductions to places normally designated for children aged 0-3 years old.

ACA NSW is looking forward to further engagements with the NSW Government in order to help them achieve their goal without negatively impacting on existing early childhood education and care services.

For more information/clarification, members can contact the ACA NSW team via 1300 556 330 or nsw@childcarealliance.org.au.

PUBLISHED: 20 SEPTEMBER 2023