Unpacking the NSW Budget 2026/2027

The NSW Treasurer (the Hon Daniel Mookhey MLC) has delivered his fourth budget today.

A summary for NSW's early childhood education and care sector of the NSW Budget 2026/2027 is as follows:

1. In addition to the NSW Labor Government's plan to build 100 public preschools colocated with primary schools by 2027, an addition seven (7) new preschools are proposed in Western Sydney and another ten (10) in Regional NSW:

   • Austral South - new primary school with co-located public early learning

   • Bella Vista West - new primary school with co-located public early learning

   • East Cobbitty - new primary school with co-located public early learning

   • Marsden Park South - new primary school with co-located public early learning

   • Menangle Park - new primary school with co-located public early learning

   • Oran Park North - new primary school with co-located public early learning

   • Orchard Hills - new primary school (relocation) with co-located public early learning

   • Calderwood Public School - co-located public early learning

   • Cessnock East Public School - co-located public early learning

   • Chisholm - new primary school with co-located public early learning

   • Cooranbong - new primary school (relocation) with co-located public early learning

   • Eden Public School - co-located public early learning

   • Googong West - new primary school with co-located public early learning

   • Huntlee - new primary school with co-located public early learning

   • Inverell Public School - co-located public early learning

   • Muswellbrook Public School - co-located public early learning

   • West Dapto - new primary school co-located public early learning

2. Continuation of the 3-Year-Old Fee Relief Trial Payment budgeted for $42.6m for children in Long Day Care until the end of 2027.

3. A slight reduction in budget allocation from $4.029m to $3.985m for Extended Hours Childcare Services associated with NSW Health.

This NSW Budget also cited the following programs, trials and future expenditures:

• the "All In" Early Childhood $500,000 Pilot Ad Hoc Grant 2024/2025 that was to prevent gender-based violence by promoting health relationships in early learning environments;

• the $92.1m expended in FY2025/2026 vs the budgeted expenditure of $650m for FY2026/2027 by the NSW Childcare and Economic Opportunity Board;

• the $55.2m expended in FY2025/2026 vs the budgeted expenditure of $94.7m for FY2026/2027 by the NSW Early Learning Commission;

• the $6m to support the NSW Office of Children's Guardian with expanded compliance capacity to overseee child-related organisations;

• the proportion of Aboriginal and Torres Strait Islander children enrolled in preschool in the year before school in NSW steadily increased from 48.8% to 90.9% in 2025; and

• the $631.9 million over five years to 2030-31 to commence Thriving Kids services for children aged 8 and under with developmental delay and/or autism.

Based on the ACA NSW Pre-Budget submission, a number of key areas appear to be unaddressed, including:

1. the investment required to address a systemic non-alignment of children's outcomes from and quality ratings of early childhood education and care as dividends for children in later years, including their visibility for parents;

2. any improvements of the NSW First Steps Strategy for Aboriginal Children to address the worsening Australian Early Development Census results since 2021;

3. no clarity on the planning of new services while avoiding oversupply;

4. no visibility on the number of nett new places in areas of true undersupply;

5. no mention of the NSW Brighter Beginnings and in particular the Health and Development Checks; and

6. no payroll tax relief/offset especially given the 10%-15% increase in early childhood educators' and teachers' remuneration.

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

PUBLISHED: 23 JUNE 2026