Community preschools face viability concerns in NSW
More than 700 community preschools across NSW are at risk under the state government’s new funding model, the Independent Education Union of Australia NSW/ACT Branch says.
On 15 September 2026, IEU members from across NSW were due at NSW Parliament House to meet MPs about the Universal Preschool Funding program and Fee Relief for Long Day Care.
Those changes affect not-for-profit community preschools that educate and care for children aged 3 to 5.
In June, the NSW government announced the new model to replace the Covid-era Start Strong program.
It promised to fully fund operating costs for not-for-profit preschools and increase pay for early childhood education staff from the beginning of 2027.
However, the union says the government has not provided details on how the model will work. It also says the government has not committed to any increase in funding per child.
Carol Matthews warns of pay gap
Branch secretary Carol Matthews said the model “threatens the viability of not-for-profit community preschools”. She said it would lead to staffing cuts that threaten child safety and the quality of preschool services.
Matthews said the change would also mean less funding for children with additional needs and pay cuts for preschool teachers.
According to Matthews, the funding model assumes community preschool teachers will be paid much less than teachers in schools, public preschools and long day care centres.
Under the model, an experienced teacher in a community preschool would earn about $30,000 less than a teacher in a public preschool or primary school, Matthews said.
She said members were upset and angry at what she called the NSW government’s failure to value their work. “We cannot build a universal preschool sector without supporting teachers and educators,” Matthews said.
Meanwhile, the union says the NSW government has repeatedly ignored the Fair Work Commission, including a recommendation to review and increase funding for community preschools so they can deliver pay rises to teachers and educators.
From the beginning of 2027, the new funding model is due to replace Start Strong. The NSW government has not disclosed any increase in funding per child.
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