The NSW Government is introducing changes to preschool funding in 2027, with eligible families able to save up to $2,625 per child on preschool fees through the new Fee Relief for Long Day Care program.
Whether your child is starting preschool or continuing their early learning journey, understanding the available financial support can help your family plan for the year ahead.
Here’s everything you need to know about the changes, how much your family could save and how to access fee relief at St Nicholas Early Education.
What’s changing to preschool funding in NSW?
From 1 January 2027, the NSW Government’s Start Strong for Long Day Care program will be replaced by the new Fee Relief for Long Day Care program.
The new program is designed to make quality preschool education more affordable for families with children aged three and above attending eligible long day care services.
Importantly, families will continue to receive fee relief to help reduce their out-of-pocket preschool costs, in addition to any Australian Government Child Care Subsidy (CCS) they may be eligible for.
The changes include increased fee relief for eligible children, with different funding amounts available depending on a child’s age and eligibility for the maximum rate.
How much preschool fee relief can families receive in 2027?
Under the new program, eligible families can receive the following annual fee reductions:
| Child’s age | Maximum fee relief rate | Standard fee relief rate |
|---|---|---|
| 4 years and above | Up to $2,625 | Up to $1,826 |
| 3 years | Up to $788 | Up to $434 |
The amount your family receives depends on your child’s age and whether they meet the criteria for the maximum fee relief rate.
The maximum rate applies to Aboriginal and Torres Strait Islander children and children attending eligible services in regional, remote or certain areas of greater socio-economic disadvantage.
Fee relief is paid directly to your nominated early education service and passed on as a reduction to your fees.
Who is eligible for preschool fee relief?
To access the 2027 Fee Relief for Long Day Care program, your child must:
- Turn three or four on or before 31 July 2027.
- Be enrolled in an eligible long day care service offering a preschool program delivered by a qualified early childhood teacher.
- Not yet be attending compulsory schooling.
- Have a confirmed enrolment, with the required fee relief declaration completed.
Children who turn four by 31 July 2027 are eligible for the four-year-old funding category, even if they are still three when they begin preschool earlier in the year.
Similarly, children who turn three by 31 July 2027 may access the three-year-old funding category from the beginning of their eligible enrolment.
Families do not need to be eligible for the Child Care Subsidy to access NSW preschool fee relief.
How does fee relief work alongside the Child Care Subsidy?
If your family is eligible for both the Australian Government’s Child Care Subsidy (CCS) and NSW preschool fee relief, you can benefit from both programs.
Here’s how it works:
- Child Care Subsidy is applied first, reducing your child’s daily or weekly fees according to your family’s CCS entitlement.
- NSW preschool fee relief is then applied, further reducing your remaining out-of-pocket costs.
- You pay the remaining balance, if any, after both forms of assistance have been applied.
Rather than receiving the funding as a lump sum, your annual preschool fee relief entitlement is generally spread across the weeks your service operates, providing ongoing savings throughout the year.
For example, a family eligible for the maximum four-year-old fee relief rate could save up to $52.50 per week at a service operating 50 weeks per year.
Your actual savings will depend on your eligibility, your service’s operating weeks and your remaining fees after CCS.
Do children need to attend preschool five days a week?
No. Eligible children can receive preschool fee relief regardless of whether they are enrolled for one day, two days or more each week.
The NSW Government encourages children to participate in at least 600 hours of quality preschool education annually, equivalent to approximately 15 hours per week over 40 weeks.
However, the amount of fee relief available under the 2027 program does not change based on the number of days or hours your child is enrolled each week.
This provides flexibility for families to choose an enrolment arrangement that suits their needs while still benefiting from financial support.
How can families access preschool fee relief at St Nicholas?
Accessing preschool fee relief is straightforward.
Families must complete a 2027 Fee Relief Declaration and Consent Form, nominating the eligible service where they would like to receive their fee reduction.
If your child attends more than one early education service, you can only receive fee relief through one participating long day care service at a time.
Once your declaration has been completed and eligibility confirmed, fee relief will be applied directly to your fees.
Our St Nicholas team can help you understand the requirements, complete the necessary documentation and answer any questions about your child’s enrolment.
Why choose preschool at St Nicholas Early Education?
At St Nicholas Early Education, we believe every child deserves access to high-quality early learning that supports their development, builds confidence and nurtures a lifelong love of learning.
Our Preschool Program for children aged three to five is delivered by university-qualified early childhood teachers and guided by the Early Years Learning Framework.
Through play-based learning and meaningful experiences, children are supported to develop important skills, including:
- Social and emotional development: Building friendships, confidence, independence and a sense of belonging.
- Early literacy and numeracy: Developing foundational skills through storytelling, exploration, play and everyday learning experiences.
- Creativity and problem-solving: Encouraging curiosity, imagination and critical thinking.
- School transition: Supporting children and families as they prepare for the transition to Kindergarten, including opportunities to develop connections with local schools.
As our preschool programs are delivered within long day care settings, families can also enjoy the convenience of extended care hours and consistent learning environments that support their daily routines.
With NSW preschool fee relief and the Child Care Subsidy helping to reduce out-of-pocket costs, quality preschool education may be more accessible than you think.
Explore preschool at St Nicholas in 2027
Choosing a preschool is an important decision for your family, and we’re here to help.
Whether you’re exploring preschool options for the first time or considering the next step in your child’s early learning journey, our team can help you understand your enrolment options and the financial assistance available.
Give your child a strong foundation for learning, with quality preschool education at St Nicholas Early Education.
Learn more about our Preschool Program or enquire about enrolment at your local St Nicholas centre.
