11 November 2026
Preschool programs delivered by members of the Early Learning and Care Council of Australia (ELACCA) may be forced to close as a result of funding cuts imposed by the New South Wales Government.
ELACCA has collected data from five of its members (not-for-profit and for-profit), showing a collective loss of $8.5 million in preschool funding in 2027. This is spread across 255 long day care services, with communities in regional NSW among the hardest hit.
“The scale of this cut is staggering,” said Dr Amanda Walsh, the CEO of ELACCA. “At a time when governments across Australia are focused on quality and safety in early learning services, it beggars belief that the Minns Government is stripping away funding.”
“The cut will have direct impacts on children, because this money is coming directly out of staffing and resources budgets. But the bigger problem is financial viability – and these cuts could force long day care services to close.”
Long day care services in NSW currently use Start Strong preschool program payments to fund: degree-qualified teachers; the inclusion of children experiencing vulnerability; and educational resources, along with other inputs that build quality and safety.
Although the NSW Government is increasing the number of government-run preschools in NSW, 64% of children attend 4-year-old preschool in long day care services, and that number rises to 73% for all children aged 3 and older. The decision to discontinue program payments was made without any consultation with the early learning sector.
Ends
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 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