What are these new Universal Preschool Funding and Fee Relief for Long Day Care?

Following the NSW Budget released on Tuesday, 23 June 2026, the NSW Deputy Premier, NSW Minister for Education and Early Learning (the Hon Prue Car MP) announced on Friday, 26 June 2026, that the new Universal Preschool Funding program and Fee Relief for Long Day Care will replace the existing Start Strong funding from the beginning of 2027.

Unfortunately, many questions have consequently arisen, including:

1. Is the proposed new Universal Preschool Funding program (beginning in 2027) for all enrolled children at independent preschools limited to 3 days per child per week?

2. Will the out-of-pocket costs cap at $20 per child per day apply to the other 1-2 days of attendance other than the 3 days per week funded by the new Universal Preschool Funding program?

3. At what date milestone will the NSW Department of Education be using so as to freeze out-of-pocket costs per day?

4. Will there be a case-by-case needs-review process available to particular preschools and long daycare services who become financially unsustainably under this new Universal Preschool Funding and Fee Relief for Long Day Care program?

5. Will the NSW Digital Hub track and ensure that the new Universal Preschool Funding is applied to those eligible children for up to 3 days per child per week regardless of the number of services they are enrolled at?

6. For those preschools who are not yet on NSW Digital Hub, how will they access Universal Preschool Funding program and comply with its requirements?

7. How will the new Universal Preschool Funding be calculated for preschools? And is the new funding influenced by SEIFA rankings? What is/are the financial model(s) used? How will it differ from the existing corresponding Start Strong funding?

8. How will the Fee Relief for Long Day Care be calculated for long daycare services? And is the new funding influenced by SEIFA rankings? What is/are the financial model(s) used? How will it differ from the existing corresponding Start Strong funding?

9. Presuming that the wages of early childhood teachers at standalone preschools are to be at par with those similar preschool teachers at public schools, how has the NSW Government ensured equity in funding for early childhood teachers in long daycare who also provide preschool education (as confirmed by virtue of their services receiving Universal Access funding through the Preschool Reform Agreement (via the current Start Strong grants))?

10. As the Expanding Quality Access program is financed from the NSW Childcare and Economic Opportunity Fund:

    1. What is the nett number of new places that have been created in deemed undersupply areas to date?

    2. What is the nett number of new places per calendar year that are anticipated to be created beginning 1 January 2027?

    3. How many community preschools and their corresponding total number of places offered have transitioned to becoming long daycare services thus far?

11. Will the new Universal Preschool Funding and/or the Expanding Quality Access program be used to support before-and-after-school attendances at those standalone preschools? If yes, what is the funding offered and eligibility criteria?

12. What are the “some additional resources” that will be offered to not-for-profit (non-tax-paying) preschools that was referred to in the announcement of 26 June 2026?

13. What is/are the financial models used by the NSW Department of Education when developing the new Universal Preschool Funding program and Fee Relief for Long Day Care that demonstrates and assures financial and operational sustainability?

14. If there are any surplus funds, what is the acquittals and return process(es)? How will surplus funds be tracked? And can surplus funds be used to cross-subsidise any other services run by the same Approved Provider?

15. From a stewardship perspective, how has the NSW Department of Education ensured that there will be no negative impacts on neighbouring services as a result of standalone preschools now being funded by the new Universal Preschool Funding program?

Until these questions can be answered, it is not yet possible to make any meaningful conclusions on this latest announcement.

These questions have today been submitted to the NSW Department of Education as well as the NSW Deputy Premier seeking clarity and supporting details. 

In the meantime, members can contact the ACA NSW team via 1300 556 330 or nsw@childcarealliance.org.au.

PUBLISHED: 29 JUNE 2026