The NSW Government's proposed Universal Preschool Funding Program, due to replace the Start Strong program from January 2027, is intended to make preschool more affordable and accessible while providing up to 600 hours of funded preschool education each year.
However, many early childhood providers fear the changes could leave smaller rural services financially vulnerable, prompting a community campaign calling for the government to reconsider aspects of the funding model.
People are being encouraged to sign a NSW Parliament e-petition and contact local MPs, including Murray MP Helen Dalton, Education Minister Prue Car and Premier Chris Minns.
Ms Dalton said concerns had been regularly raised with her office by preschool operators across the electorate.
“There’s been a lot of concern about changes to community preschool funding across NSW, and I want to reassure our local families, educators and preschools that their concerns are being heard and taken seriously,” she said.
“Our country preschools already face challenges that larger services don’t.
“Finding qualified staff can be incredibly difficult, enrolment numbers fluctuate, and volunteer committees work incredibly hard to keep these services operating.
“A funding formula that looks fine on paper in Sydney doesn't necessarily work in a small country town.”
The concerns come as Berrigan Children’s Centre faces its own funding uncertainty after missing out on federal support it had received for more than two decades.
In a statement, the centre said it was facing “significant financial challenges” following an unsuccessful application of the Federal Government’s Community Child Care Fund (CCCF) Round 5 Sustainability Support.
It said this leaves the centre “without additional federal funding it has received for over 20 years”.
“This comes alongside changes to NSW Government funding for 2027, with Start Strong for Long Day Care transitioning to the Fee Relief for Long Day Care program, removing the program payment previously provided to long day care services to help cover the operational costs of delivering preschool education,” the centre said in an online statement.
“As a not-for-profit, community-run service, we play an essential role in supporting local families, providing quality early childhood education and care, and allowing parents to participate in the workforce.
“Without adequate funding, small rural services like ours face increasing financial pressures that could impact fees, services, and long-term sustainability.”
The centre is urging community members to advocate on its behalf, and for other affected early education providers.
“We need our wider community to help us speak up.
“We encourage families, local businesses, past families, and community members to contact our local MPs and share why Berrigan Children's Centre is important to you and our community.”
The NSW Government maintains the Universal Preschool Funding Program will deliver a fairer and more sustainable system while reducing costs for families.
“The Universal Preschool program ensures fairer, more consistent and sustainable funding, so families across NSW, including in regional areas, can access high quality, affordable early learning,” a NSW Department of Education spokesperson said.
“Importantly, both three and four year-old children are fully funded for the first time, and the new guidelines cap preschool program fees at their current rate or a maximum of $20 per day.
“The new guidelines also mandate above-award wages for the first time.”
The government says total funding available through the Universal Preschool Funding Program and Inclusion Funding Program is expected to increase from between $540 million and $625 million this year to between $584 million and $642 million in 2027.
Funding allocations, including transition funding, are expected to be released later this month.
You can sign the petition by going to www.parliament.nsw.gov.au/parliamentary-business/petitions/epetitions, or by following the petition link shared by NSW Member for Murray Helen Dalton.
