In an unprecedented public decision, the independent workplace umpire has told the NSW Government that community preschools cannot pay for their urgent wage shortfall by themselves, instead, they must receive additional funding from the NSW Government or increase fees for parents. The NSW Government was then grilled over the details of Fair Work Commission recommendations as part of recent Budget Estimates hearings.
CELA’s advocacy has been instrumental in creating momentum for NSW community preschools’ wage claim, in the Fair Work Commission and in NSW Parliament, on behalf of 104 member providers.
All parties will now return to the Fair Work Commission on 23 March 2026, and we expect to see a response from the NSW Government. In the lead-up to this hearing, CELA continues to advocate intensively to Minister Car and across NSW Parliament to highlight the urgency of solving community preschool funding.
The context
CELA is representing community preschools in multi-employer bargaining currently underway with providers, unions and the NSW Government, leveraging our successful advocacy in securing the federally funded 15% wage increase for the long day care sector. This is the next step in delivering professional wages for our whole sector, building on the 15% federally funded increase secured for early educators and teachers in long day care services.
The viability of community managed preschools is under threat due to two shortfalls in NSW Government Start Strong wages funding:
1. Pay gap for community preschool educators
Community preschool educators and teachers are paid on average 25% less than their colleagues working in NSW public preschools, long day care services and schools.
2. Gender undervaluation wage increase
The mandatory Gender Undervaluation wage increase corrects historic gender-based undervaluation of work under the Children’s Services Award. NSW Start Strong funding does not account for this 10% increase, which affects around 70% of community preschool staff. If services do not address the increase by 30 June, diploma qualified room leaders could be paid more than degree qualified preschool teachers.
Without an urgent NSW Government commitment to fund this wage gap, services will be obligated to pass on these costs via significant increases to parents’ fees.
CELA’s effective advocacy on behalf of community preschool members
We understand the importance and urgency of solving the critical workforce challenges faced by NSW community preschools without raising families’ fees. We understand the significant impact that this is having on you, your staff and your families.
CELA has been tirelessly advocating to deliver government funded professional wages for NSW community preschools. This is a continuation of our long term advocacy campaign for governments to fund a professionally paid and respected early education and care workforce across all sectors.
Over the past 18 months, we have been actively negotiating, lobbying and representing community preschool members including:
- direct detailed negotiations with the NSW Government through supported bargaining in the Fair Work Commission, and delivering highly influential evidence that led to the unprecedented public Fair Work Commission recommendation
- multiple representations to the NSW Minister for Education, presenting detailed member case studies on the critical funding and workforce issues faced by community preschools
- actively defending community preschools against false claims made by the NSW Government on cash reserves and their capacity to pay for increased wages, including sharing our Fact Check Brief to every member of NSW Parliament and the media
- direct lobbying of NSW Parliamentarians outlining the impact of community preschool funding shortfalls on children and families in their electorates
- presenting our 2,000 signature parents’ petition to NSW Parliamentarians, asking for pay equity for NSW community preschool educators and teachers
- activating members of NSW Parliament to speak out about the critical funding issues facing NSW community preschools over a dozen times in Question Time, and in over twenty statements to Parliament, as well as intensive questioning in Budget Estimates
- supporting our members to invite NSW Parliamentarians to visit their services and hear directly about the impact of low wages
- briefing local media to highlight the impact of low wages on community preschools in our members’ communities
- providing in depth evidence on the impact of low community preschool wages in the Fair Work Commission’s Gender Undervaluation Review.
We are determined to see a positive result that solves critical workforce shortages. This is the foundation for delivering high quality universal preschool across NSW.
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.