Community preschools across New South Wales have been given a funding guarantee for the next two years, with the NSW Government confirming no service will be financially worse off in 2027 or 2028 under the state’s new preschool funding model.
The announcement follows weeks of concern from preschool operators, families and educators over proposed changes to Universal Preschool Funding. Under the guarantee, services will receive at least their 2026 funding allocation, adjusted for operational factors such as enrolments and opening hours. The government says the measure will help preschools retain staff and continue expanding access to early learning.
MP Judy Hannan welcomed the decision, describing it as the result of strong community advocacy and political pressure. She said nearly 42,000 people signed a parliamentary e-petition calling for community preschool funding to be protected, making it one of the fastest-growing petitions of the current Parliament.
The funding debate intensified after details of the new model were released late in the year, prompting concerns some community-based preschools could face budget shortfalls from January. Independent MPs, preschool organisations, unions and families had urged the government to pause the changes and continue consultations with the sector.
Ms Hannan said the guarantee would provide certainty for the state’s 740 community preschools while discussions continue on the long-term funding model. She thanked petition supporters, educators and families who joined the campaign, describing the outcome as “wonderful news” for children and communities across NSW.
