NSW Budget and Childcare
4 jULY 2022
Families across New South Wales are set to save thousands of dollars on their childcare costs thanks to more than $1.4 billion over four years in the 2022-23 NSW Budget. Under the new initiatives, many young families will be eligible for up to $10,000 per child per year in subsidies, with no means of testing required.
This represents a significant increase from the current subsidy of $2,100 per year. In addition, families will also be able to access up to $5,000 per year for out-of-pocket expenses such as childcare centres and before and after school care.
Parents will still be eligible for the Commonwealth subsidy, which is set to change under the new Labor government. "This investment, delivered alongside the Commonwealth's childcare reforms, is expected to see up to 95,000 women enter the workforce or take on more hours, driving down the gender workforce participation gap by up to 14 percent within a decade," Mr. Kean said.
“This reform will transform childcare in NSW,” he said. “Good women's policy is also good economic policy for everyone.” An initial $775m will be spent on the policy over the next four years, with up to $5bn over the decade. Baked into the policy is a $218m workforce plan to ensure centres that expand will be able to find staff, with money set aside for scholarships and tertiary education.
These initiatives are expected to save families an average of $3,000 per year on preschool costs. The NSW Government has also committed to ensuring that all eligible children have access to a high-quality preschool education by expanding the number of places available. These reforms will make preschool more affordable and accessible for families across New South Wales.
In a recent announcement, NSW Premier Dominic Perrottet stated that the New South Wales government will be expanding its preschool program in order to make high-quality early learning services education more accessible for families across the state.
The expansion of the program is expected to ease the cost of living pressures for families and ensure that more children receive a smooth transition into school.
Early childhood education is critical for better educational outcomes later in life, so this move by the NSW government is welcomed news for parents and children alike. It is yet another example of the commitment of the NSW government to supporting family and ensuring that all children have the opportunity to succeed.
From 1 January 2023.
· Children aged 3, 4, and 5 will be able to attend community or mobile preschools with up to $4,000 per year in fee relief.
· For children aged 4 and 5 who attend preschool in a long day care setting, there will be up to $2,000 per year in fee relief.
· Lastly, all children in Department of Education preschools will have the equivalent of 5 days a fortnight of affordable preschool fee relief.
This is great news for families across the state who have been struggling to afford preschool fees. With this new policy in place, more children will be able to attend preschool and get a head start on their education.
The New South Wales Government has announced that it will invest $64.1 million for a two-year pilot to support more 3-year-olds attending preschool in long day care services. This is in addition to the $317 million already committed to supporting preschool education in NSW.
Treasurer Matt Kean said that the evidence shows clearly the positive impact quality preschool can have on a child’s life outcomes and on the economy.
He added that this investment will help ensure that more children in NSW have access to high-quality preschool education. This is a welcome investment that will make a real difference in the lives of children and families in NSW.
Mr. Kean said "Every $1 invested in early childhood education delivers a $2 boost to the NSW economy – it is a great investment for any Treasurer,”
NSW Treasurer Matt Kean said investment in childcare is the best way to improve women's economic opportunity, increase female workforce participation and close the gender pay gap. "Childcare costs impede the dreams of women across NSW because many women are only able to keep about 30 cents in each dollar they earn when they return to work,” Mr. Kean said. “
The government is also allocating $281 million in an attempt to increase the childcare workforce
The NSW Government will make a landmark investment of up to $5 billion over the decade to expand access to high-quality, affordable childcare places across NSW. The 2022-23 State Budget will establish the Affordable and Accessible Childcare and Economic Participation Fund (the Fund) as the Government's mechanism to deliver this transformational reform.
Mrs. Taylor said. “This package will help break the childcare drought by targeting areas with the least access to affordable childcare places, which poses the highest of this month's budget.
Sarah Mitchell, the Minister for Education and Early Learning in NSW, believes that improving early childhood education is one of the most effective ways to improve educational outcomes later on in school.
“A significant body of research shows that children who participate in quality preschool programs have improved lifelong educational, social and economic outcomes,”
“That’s why I’m so delighted to be continuing our support for community and mobile preschools. Families using these services are not eligible for the Child Care Subsidy, so NSW’s commitment to long-term funding relief is significant and genuinely needed.
“We are also extending support to NSW families whose children attend preschool in a long day care setting, because at the end of the day what’s important is our littlest learners having access to great quality preschool programs.”
The Start Strong Free Pre-school Program is a New South Wales Government initiative that provides free preschool for all three-year-old children in the state. The program is already providing $150 million in fee relief for children enrolled in community and mobile preschools across NSW in 2022.
Affordable and accessible childcare and Economic Participation Fund
Successful projects will be those that are helping reduce extreme supply and demand mismatches in early childhood education reforms.
This includes up to $5.0 billion for the Affordable and Accessible Child care and Economic Participation Funds and $5.7 billion to introduce a high-quality universal pre-Kindergarten year for all children in NSW in the year before school by 2030.