Illawarra education provider warns of impact from NSW funding reforms

An early education provider in the Illawarra region has expressed concern regarding upcoming New South Wales state funding reforms. The NSW Government has announced changes scheduled to take effect on January 1, 2027, which are intended to create more consistent and sustainable access to high-quality, affordable early learning.

BFS Children’s Services, a not-for-profit provider, warned that the reforms could place significant pressure on both families and service providers. A primary concern involves cuts to the Start Strong program, which will remove direct preschool program funding for long day care services. Under the new structure, the Start Strong for Long Day Care program will be replaced by a Fee Relief for Long Day Care program. While this new program increases fee relief for eligible children and continues funding for three-year-olds, services will only qualify if they provide a preschool program.

BFS Children’s Services CEO Kim Bertino stated that the changes could disproportionately impact families who rely on these services for both education and the flexible hours required to participate in the workforce. Additionally, a new Universal Preschool Funding program will replace the Start Strong for Community Preschools program, adjusting payments to reflect expected operating costs and staffing levels.