The Fair Work Commission has backed CELA’s evidence that an urgent NSW Government funding increase is required to solve the significant gap in community preschool wages.
The workplace umpire has recommended the NSW Government ‘take all necessary action including reviewing and increasing funding’ to ensure community preschools can pay their staff professional wages on par with long day care and public preschools.
The context
CELA, unions and the NSW Government are currently participating in a supported bargaining application with the NSW Government on behalf of 103 NSW community preschools. This process aims to create a new multi-employer agreement to deliver NSW Government funded professional wage increases to educators and teachers working in NSW community preschools.
This is the next step in delivering professional wages for our whole sector, building on our successful advocacy to secure a 15% federally funded increase for early educators and teachers in long day care services.
As part of these proceedings, the Commission has issued a non-binding public recommendation outlining their views on the nature of this agreement and the responsibilities of the NSW Government to participate.
Key takeaways
Based on evidence presented, the Commission found that:
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the NSW Government has a responsibility to fund preschools at a level that allows them to comply with funding conditions, with the financial resources to employ sufficient qualified staff - this is likely to become increasingly difficult as long as long day care and schools provide teachers with much higher pay
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without additional funding, community preschools will need to increase out of pocket costs for families to address the wages gap with the long day care and government preschool sector, and to comply with the Gender Undervaluation Review mandatory wage increase
What does this mean for CELA members?
The importance of the Commission’s decision is a vindication of what community preschools and parents have been telling the NSW Government for over a year – the wages gap is due to flaws in the NSW Start Strong funding model and needs to be fixed urgently with additional funding.
Our intensive advocacy to NSW Parliament is driving momentum for a positive result in this Fair Work Commission process. It’s clear that there is strong parliamentary support for community preschools and their staff, with multiple motions and statements in both chambers. We also shared a NSW Preschools Fact Check brief with all NSW MPs and MLCs to correct false media claims on excessive cash reserves in some preschools.
What’s next?
CELA and the unions reached agreement on the proposed new multi-employer agreement in late 2025. To date, the NSW Government has not committed to funding professional wages for community preschools. Parents will be hit with major fee increases unless this wage gap is solved quickly.
CELA will continue to advocate intensively for a positive result that protects the sustainability of community services and keeps preschool affordable for all NSW families. Our number one priority is to seize this opportunity on behalf of community providers, creating the early education system that NSW children and families need.
About CELA
Community Early Learning Australia is a not for profit organisation with a focus on amplifying the value of early learning for every child across Australia - representing our members and uniting our sector as a force for quality education and care.