The state government has backflipped on its new preschool funding model, promising community preschools across NSW, including in New England, at least their 2026 funding for the next two years.
The change was announced on Saturday, 14 November. For 2027 and 2028, every community and mobile preschool will receive at least its 2026 funding allocation, adjusted for operational changes such as enrolments and opening hours. The government says the guarantee will help preschools keep their staff while they welcome more families.
The funding overhaul is designed to help community preschools make better use of the places they already have. The government says more than 10,000 additional children could attend existing community preschools. It accepts the change is a significant one that will take time to put in place, and says it will work with the sector to address its concerns.
The backflip follows warnings from MPs, including Member for Tamworth Kevin Anderson, and a pledge from the Liberals and Nationals to reverse the cuts if they win the 2027 election.
Independent Member for Barwon Roy Butler welcomed the guarantee. He wrote to Deputy Premier Prue Car in October and last week took the matter to the Premier. He also delivered a Private Member’s Statement to NSW Parliament, calling for transitional funding and a rethink of the new model.
“The NSW government is introducing a new funding model with the intention of getting more kids into early learning,” Mr Butler said. “Unfortunately, the new funding model would have had terrible consequences for many community preschools serving disadvantaged communities in the bush.”
“Community preschools in western NSW were facing shortfalls of hundreds of thousands of dollars, which could have forced them to withdraw places and would have threatened some of the other support programs they run.”
“It will take time to work out the flaws of the new Universal Preschools Funding model, which is why the affected community preschools need transitional funding until the necessary changes are made.”
“I congratulate Premier Minns and Education Minister Car for acknowledging the problems and introducing two years of transitional funding which will see 2026 funding serve as the minimum for each service.”
“This gives us time to work through the details and improve the model next year,” Mr Butler said.
The announcement came with a bigger promise. If Labor is re-elected, it will build 100 public long day care centres across NSW. They would typically open from 7am to 6pm, five days a week, for 50 weeks a year, and every centre would offer a preschool program for children in the two years before kindergarten.
The centres would sit on existing public school land, in communities where places are in short supply or existing services cannot keep up with demand. The government says this would end the double drop off for parents and avoid the cost of buying separate sites. It says the plan is funded in the NSW Budget.
The government says 43 per cent of NSW communities do not have enough access to early learning, and research it commissioned shows the state needs 21,000 more places by 2030. In some parts of the state, it says, families face waitlists of up to two years.
“For too many parents, finding affordable childcare is the difference between being able to work or having to stay home,” said Premier Chris Minns. “We need more places, and we need to make better use of the places we already have.”
“That’s why, if we’re re-elected, we’ll deliver 100 public long day care centres in communities where families need them most.”
According to the government’s 2026 Women’s Strategy Report Card, 29.3 per cent of women who want to work are not actively looking for a job because of childcare responsibilities.
“This is about making life easier for working families, giving more children a great start in life and helping more parents get back into the workforce,” Mr Minns said.
“Despite significant government investment, around half the state remains undersupplied with early learning places,” said Deputy Premier Prue Car. “Something has to change.”
“We know families are juggling parenting, work and a high cost of living. Our public long day care centres will go a long way to help by ending the double drop off and providing affordable quality childcare close to home.”
“Too many parents, particularly women, cannot work because childcare is unavailable or unaffordable. Access to high-quality early learning can make the world of difference to working families.”
“We are on track to deliver 100 public preschools by 2027. Now we are going further, delivering 100 public long day care centres to meet the needs of even more families.”
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