What was announced in the 2023-2024 NSW Budget?

September 20th, 2023 Latest News

Yesterday on 19 September 2023, the NSW Labor Government presented its first NSW Budget in 12 years. ACA NSW President Lyn Connolly and CEO Chiang Lim were present in the NSW Parliament House (again).


ACA NSW appreciated that the NSW Government kept both the $5b over 10 years Childcare and Economic Opportunity Fund and the $5.7b over 10 years for universal preschool access virtually intact.


That said, ACA NSW has submitted to the NSW Government a request for clarification and/or additional detail on the following announcements:


  1. The $500 per child per year funding for 3-year-old children in long daycare for 2 years for 64,000 children
    1. This funding already started as a trial since January/February 2023.
    2. Q1: Are there any operational changes to this funding beginning January 2024?
    3. Q2: Are there any changes to children’s eligibility criteria compared to those 3-year-old children in long daycare already receiving the $500 per child per year funding since January/February 2023?
  2. $769.3m for 100 new preschools on public school sites
    1. In the context of then NSW Labor’s clarification to avoid oversupply of early childhood education and care services:
    2. Q1: Will this funding average of $7.69m per new government preschool mean the NSW Government plans to invest such funding in terms of capital expenditure as well as operational expenditure? If so, what is the term of this funding for the operational expenditure?
    3. Q2: Based on the average of $7.69m per new government preschool, what is the average number of places envisaged to be offered and the numbers of early childhood educators and teachers planned?
    4. Refer also to ACA NSW's concerns about 100+50 new preschools shared with the NSW Government.
  3. $60m towards new and upgraded non-government preschools to increase affordable, high quality preschool in the areas of most need
    1. We interpret this funding to be for 50 new non-government preschools, as promised by NSW Labor prior to the NSW state election on 25 March 2023.
    2. Again in the context of then NSW Labor’s clarification to avoid oversupply of early childhood education and care services:
    3. Q1: Will this funding average of $1.2m per new non-government preschool mean the NSW Government plans to invest such funding in terms of capital expenditure only?
    4. Q2: Based on the average of $1.2m per new non-government preschool, what is the average number of places envisaged to be offered?
    5. Refer also to ACA NSW's concerns about 100+50 new preschools shared with the NSW Government.
  4. $20m for Flexible Initiatives trial (FIT) for families
    1. Assuming this is funded from the Childcare and Economic Opportunity Fund (the Fund), the FIT represents 0.4% of $5b.
    2. Q1: How does the FIT compare against the 72 pilot sites that began in February 2023 under the said Fund?
    3. Q2: What happened and what will happen in the future to the 72 pilot sites that had similar objectives with the FIT?
    4. Q3: What will FIT achieve that the 72 pilot sites will not?
  5. $20m in capital funds to support new not-for-profit services in high-growth and regional communities
    1. Assuming this is funded from the Childcare and Economic Opportunity Fund (the Fund), this funding represents 0.4% of $5b.
    2. Q1: Of the remaining up to 99.6% of $5b, when will the Fund’s board articulate the availability of funds for all interested Approved Providers so as to support new services in areas of genuine need?
    3. Q2: On what published criteria will all services be assessed against when applying for such funds to create new services where the market is unable to?
    4. Q3: How will the Fund ensure that oversupply of services will not occur, especially in light of the ACCC Interim Report (see Figure 2.15) published observation that oversupply increases fees by up to 40%?
  6. $22m over 5 years to recruit and retain essential early childhood workers
    1. Q1: Is this $22m in addition to $281.6m that was budgeted in the NSW Budget 2022-2023?
    2. Q2: If this $22m is separate to the $281.6m funding, then what happened to the balance of the $281.6m (estimated to be at least $250m)?
    3. Q3: Given the potential structural decline in domestic supply of qualified early childhood educators and teachers, will this $22m funding be limited to domestic candidates only?
  7. Up to $6.5m for the business capability development program for leadership, management and financial capability development
    1. Q1: Is this funding for the internal use of the NSW Department of Education and/or other NSW Government agencies only?
    2. Q2: Will this funding assist with providing the NSW Department of Education with true and comprehensive data sources to facilitate policy and funding distribution decisions?
    3. Q3: Is this funding separate to the Childcare and Economic Opportunity Fund?
  8. $20m boost to the Innovative Teacher Training Fund to attract the best teachers
    1. Q: Will this Innovative Teacher Training Fund be available to attract qualified early childhood teachers for NSW’s early childhood education and care services?

ACA NSW looks forward to working with the NSW Government as well as the additional information in anticipation.


In the meantime, should ACA NSW members need any further information/clarification, please feel free to contact the ACA NSW team via 1300 556 330 or nsw@childcarealliance.org.au.


PUBLISHED: 20 SEPTEMBER 2023

FAQs