New NSW law has risk of creating new oversupply

The NSW Government announced in June 2022 of its intention to publicly fund the creation of new early childhood education and care services in areas of undersupply.

The NSW Parliament passed the Childcare and Economic Opportunity Fund Act in October 2022. And it is accompanied by at least $775m of funding over 4 years beginning 2023.

Although ACA NSW supports the NSW Government's intentions to address genuine need of children and parents yet they are located in areas where new ECEC service(s) is not possible due to the absence of its sustainability.

However, ACA NSW has expressed concerns to the NSW Government that there could be false positives for the need for new ECEC services in existing normally supplied areas. This is due to severe/worsening labour shortages compelling existing services to reduce their places in order to comply with staffing regulations.

ACA NSW will update its members on how the NSW Government will balance genuine need of children and parents while also properly addressing the abovementioned false positives.