14 August 2026
The Early Learning and Care Council of Australia (ELACCA) urges the NSW Government to reverse its decision to cut funding for preschool programs delivered in long day care services.
“This is a shocking decision, because the funding cut will have a direct impact on children,” said Dr Amanda Walsh, the CEO of ELACCA.
“Long day care services use the preschool program funding to pay for degree-qualified teachers, for the inclusion of children experiencing vulnerability, and for educational resources, along with many other things that build quality and safety.
“When the program funding disappears on 1 January next year, all these building blocks are under threat: our qualified workforce, inclusive environments and strong educational programs.
“Fee relief for parents and caregivers is very important – but we also want to ensure their children get the best possible preschool experience. That means balancing fee relief with investment in quality preschool, to ensure that every child is ready for school, no matter which service they attend.”
“Long day care services are using the preschool payments to build quality, and I’m confident our members could meet any new funding conditions linked to quality, if the NSW Government chooses to adjust the program, rather than scrap it.
“We see similar quality uplift programs operating very successfully in other states, such as Victoria, and we know they can support children in NSW, too.”
ELACCA has surveyed its members – who provide more than 500 long day care services across NSW – on the impact of the funding cut. For one not-for-profit provider, the cut will push two of its 16 services into financial deficit, raising the serious prospect of imminent closures. All ELACCA members operating in NSW, together with their staff, will feel the impact of the cut.
Although the NSW Government is increasing the number of government-run preschools in NSW, 63.8%[1] of children attend 4-year-old preschool in long day care services. The decision to discontinue program payments was made without any consultation with the sector.
[1] Preschool Education, 2025 | Australian Bureau of Statistics
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About ELACCA
ELACCA wants all children in Australia to have access to inclusive, high-quality early learning and care, delivered by a skilled, valued workforce.
We draw on the knowledge and experience of our members, contributing to the development of evidence-based public policy for the early years sector.
We seek to co-create with governments a strong, sustainable early learning and care system that can support all children and families across Australia.
Our 17 members represent both not-for-profit and for-profit providers of early learning and care services. They operate a total of 2,383 services, including 2,002 long day care services, 304 preschool/kindergarten services and 77 OSHC services, covering every state and territory. ELACCA members serve 356,339 children and their families, and employ more than 57,382 staff.
Contact
Dr Victoria Flanagan, Senior Policy Manager
M: 0498 228 762