Potential Funding Changes: Lack of clarity from the NSW Department of Education for 2027 and beyond

No doubt members and all early childhood education and care services would have received the NSW Department of Education’s e-mail titled “Funding reforms for long day care services from January 2027” on 12 August 2026.

Although that email communiqué does come across as unexpected, jarring and thus extremely disconcerting, it generates more questions than answers.

Members would be aware that the communiqué of 12 August 2026 is effectively the same with the NSW Deputy Premier & Minister for Education and Early Learning’s media release of 26 June 2026.

And back in June 2026, ACA NSW consequently posed 15 questions that remain broadly unanswered by the NSW Government and the NSW Department of Education.

NSW long daycare services will know that Start Strong funding was and still is in part the funding distribution vehicle for the Federal Government’s Universal Access funding and now its Preschool Reform Agreement (PRA). It should be noted that the PRA is still in place until 2027 (with an increase expected from up to $1,611.66 in 2026 to up to $1,651.95 per child in 2027).

Notwithstanding, ACA NSW wrote to the NSW Deputy Premier again on 5 August 2026 reminding her and the Minns NSW Government and fellow parliamentarians to consider the potential reactions of and consequences to NSW’s 3,713 long daycare services as well as their children and families should there be any significant enough reduction of funding.

No doubt ACA NSW will continue to advocate for members and seek the answers that are glaringly absent.

For any further information/clarification, please contact the ACA NSW team via 1300 556 330 or nsw@childcarealliance.org.au.

PUBLISHED: 14 AUGUST 2026