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Negatively affected LDCs from NSW’s “free preschool” funding

The Australian Childcare Alliance (ACA) NSW closed a survey on 19 March 2021, collecting details from services if they had been negatively affected by the NSW Government’s decision to extend “free preschool” funding to community/mobile preschools.


Out of 162 Approved Providers and their 263 services who participated in the survey, at least 220 services have apparently been negatively affected.


Consequently, a letter from ACA NSW to the NSW NSW Minister for Education (the Hon Sarah Mitchell MLC) and the NSW Department of Education was sent seeking solutions.

As previously reported, the following arguably are now occurring as the unintentional outcomes:


  • the NSW Government’s funding could provide for children free preschool for up to 1,440 hours per year (and not the originally announced up to 600 hours) for 3-5 years-old children;
  • parents could maximise up to 1,440 hours per year of free preschool by enrolling their children in multiple preschool environments per week;
  • all households regardless of their income could be eligible to receive the free preschool funding;
  • overall preschool participation per child may not be increasing, but instead children appear to be shifting from a long daycare setting to community/mobile preschool setting; and
  • workplace participation of parent(s) may not be increasing/occuring.


ACA NSW can confirm that an initial discussion has occurred with representatives of the NSW Government in March 2021. ACA NSW is awaiting a more comprehensive discussion(s) with the NSW Government as well as receiving practical solutions.


Should you need further information/clarification, please contact ACA NSW on 1300 556 330 or nsw@childcarealliance.org.au.


PUBLISHED: 30 MARCH 2021

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