Budget: $2 billion in additional preschool funding for states and territories

A new $2 billion, four-year national reform commitment will be established to strengthen the delivery of preschool and better prepare children to start school, through to the end of the 2025 calendar year.

A new $2 billion, four-year national reform commitment will be established to strengthen the delivery of preschool and better prepare children to start school, through to the end of the 2025 calendar year.

Under this agreement, the Australian Government will continue to provide a per child contribution to states and territories. In 2022, this will be around $1340.

The commitment locks in ongoing Australian Government funding beyond 2025, with reforms to be agreed with all states and territories to lift preschool attendance and outcomes.

The funding supports 15 hours of preschool a week – 600 hours a year – for all children in the year before they start school.

This funding will be contingent on states and territories agreeing to an ambitious reform agenda.

From 2023, every child enrolled in an approved preschool program, regardless of the preschool setting, will see the full benefit of Commonwealth funding. This amounts to around $1340 per child in 2022.

Data from the Australian Early Development Census (AEDC) indicates that preschool reduces the number of children who are not ready to start school by about 10%.

The Commonwealth stands ready to work with states and territories to have the Preschool Reform Funding Agreement in place by the end of 2021.

Learn more about the Preschool Reform Funding Agreement on our website