The Start Strong Funding 2025 is a New South Wales (NSW) Government initiative to make preschool education more affordable and accessible for families. It is part of the broader Affordable Preschool Program, which supports early childhood education in the years leading up to primary school. Fee relief applies to eligible preschool programs in community preschools, mobile preschools, and long daycare centres. 

Preschool and long day care directors have been looking at the new Start Strong Funding to determine their budgets and fees for 2025. Here, we unpack the key elements of the program and provide funding amounts.  

Long day care

Start Strong for Long Day Care provides funding through 3 streams: 

1. 4yo+ Program Payment – Program payment (full amount) is received for every eligible child enrolled for 600 hours or more. Those enrolled for fewer than 600 hours receive 67% of the full amount. 

Program funding for children who aged 4 or above (on or before 31 July 2025), scaled for enrolments above and below 600 hours. 
 

Additional 50% loading is provided for equity enrolments for: 
a. Aboriginal and Torres Strait Islander children 
b. services located in areas of relative socio-economic disadvantage (SEIFA Decile 1 or 2). See Table 1. 
 

2. 4yo+ Fee Relief Payment – Fee relief for families of children aged 4 and above.  

3. 3yo Fee Relief Trial Payment – Fee relief for families of children the age of 3-years-old and not yet 4-years-old on, or before 31 July 2025 (child's birthday must be on, or between 1 August 2021 and 31 July 2022). 

4YO+ Program Payment 

• Only one extra payment (equity loading) is given for each eligible child. 

• Funding is calculated based on the child’s hours and eligibility criteria. 

Table 1: 

4YO+ Fee Relief Payment 

• For families with children aged 4 and above 

• Up to $2,174 in fee relief can be granted to families with children aged 4 on or before July 31, 2025. 

3YO Program Trial Payment 

Families with children aged 3 years old on or before 31 July 2025 can receive up to $515 in fee relief. 
 

*Note that a two-year trial of 3YO Program Payments operated during 2023 and 2024. The department is currently considering arrangements for 2025 and will provide separate advice once available. 

Community preschools and mobile services

Start Strong funding for 2025 provides financial support to deliver affordable, quality preschool education for 3- 5-year-old children in eligible communities and mobile preschools in NSW. The program operates from January 1 to December 31, 2025. 

1. Program Payment is to be used for operating expenses of services offering at least 600 hours per year or 15 hours per week of preschool education.  

2. Fee Relief Payment aims to reduce the cost of early childhood education and care to families in the form of fee pass-through. 

Program payment

Supports operating costs for eligible services, offering at least 600 hours per year or 15 hours per week of preschool education and  provides funding through various components.

Base funding rates 

• Determined by service's SEIFA decile and annual enrolment hours

Equity loadings 

Additional funding for: 

• Aboriginal and Torres Strait Islander children 

• Children from low-income families 

• Children with disability or additional needs 

• Top up the base rate to the highest rate of $8193 regardless of SEIFA decile 

• Funding is scaled by annual hours of enrolment, although exceptions may apply for children with a disability or additional needs 

Additional loadings 

This comprehensive funding model aims to ensure accessible, high-quality preschool education with enhanced support for disadvantaged groups and vulnerable children.

Fee Relief Payment

• Provides up to $4,347 per year in fee relief for 3- to 5-year-old children enrolled in community and mobile preschools (highest rate is for a child enrolled in 600 hours or more).
• Higher funding rates for preschools in lower socio-economic areas.
• To be eligible for funding, children must be at least 3 years old on or before July 31, 2025, attending an eligible early childhood education program, and not in compulsory schooling.