Inquiry Highlights Urgent Need for Funding
On May 20, 2026, a NSW parliamentary inquiry recommended that the state government fully fund community preschools to deliver fair pay and conditions for teachers and educators. This initiative aims to address the urgent issue of staffing shortages in the sector.
The report urged collaboration with the Independent Education Union of Australia, Community Early Learning Australia, and the United Workers Union to tackle workforce attraction and retention challenges.
David Towson, Acting Secretary of the IEUA NSW/ACT Branch, stated, “This parliamentary inquiry states what the union and its members already know: a funding boost for community preschools is urgently needed so teachers and educators are paid fairly for providing high-quality education to children aged 3 to 5.”
Staffing Challenges and Pay Discrepancies
In August and September of the previous year, IEU preschool teacher members and officials provided evidence at the inquiry about serious staffing shortages that put children at risk. Teachers are leaving due to stress and burnout from excessive workloads.
Community preschool staff earn up to 30% less than school teachers with similar qualifications and roles, and 15% less than colleagues in long day care centres, highlighting a significant pay discrepancy.
Towson noted, “There is a systemic, gender-based undervaluation of this highly feminised workforce. To start addressing this, community preschool staff need a 15% pay rise.”
The inquiry’s recommendations reinforce the Fair Work Commission’s suggestion from February 2026, urging the NSW government to review and increase funding for community preschools to improve pay and conditions.
Community preschools are run by volunteer committees of parents, focusing solely on children’s education and safety. Funding relies solely on the NSW government and parent fees, without federal support.
The NSW government is expected to consider these recommendations as it prepares its June budget. However, despite months of negotiations, the government has not yet committed to a funding boost.
Without increased funding, community preschools may be forced to cap enrolments because of staff shortages or increase fees, which could burden parents amidst a cost-of-living crisis.
