COVID-19 NSW: Non-Profits – COVID-19 Free Preschool Funding Program

This program aims to provide support to preschools operating in NSW, including enrolments, which are impacted with the COVID-19 pandemic. It is a temporary program which has been extended throughout 2021 to continue to support families with cost of living pressures and to support the ongoing provision of 600 hours of early childhood education in the year before school.

Funding will be provided as a top up payment to replace a high proportion of estimated fee income. In turn, services are required to provide at least 15 hours of fee-free preschool per week for families.

The amount of funding provided to each service will be based on the characteristics of the service and the children attending the service:
- Services in lower socio-economic areas (SEIFA bands 1-8) will receive 100% of the calculated fee income per term for 2021.
- 100% of the calculated fee income will also be provided for all equity children, that is, regardless of the socioeconomic profile of the area (all SEIFA bands).
- For services in higher socio-economic areas (SEIFA bands 9-18), a minimum of 80% of calculated fee income will be provided to services.
- In circumstances in which enrolments have declined (as per the August 2020 census), services will not receive less funding per term in 2021 than they did per term in 2020.

Funding is provided for children eligible for funding under the Start Strong guidelines for community preschools. Eligible children are those who are at least three years old on or before 31 July in that preschool year and not in compulsory schooling and are attending an early childhood education program.

As was the case in 2020, to prevent duplication of funding, final payments to services will also take into account any payments the service may be receiving from the Australian Government’s JobKeeper Payment scheme.

Payments will commence to eligible community preschool and mobile preschool services from January 2021. Four payment rounds will be made throughout the year in line with the commencement of each term.

To receive funding, eligible providers must complete an opt in for the 2021 program, regardless of whether they have opted in to the program in 2020. Providers who did not opt in to the program in 2020 are able to opt in to the program in 2021.

Eligible applicants include Start Strong funded community preschools and mobile preschools on contracts.

Services must comply with the following conditions:
- Enrol in the JobKeeper program in the first instance if eligible.
- Remain open and available (unless on public health advice).
- Provide at least 15 hours of free preschool to families per week.
- Retain staff where possible.
- Prioritise access for children of essential workers, vulnerable and disadvantaged children and existing enrolments.
- Provide suitable outreach (or distance education) to children who are enrolled but not physically attending.

Please refer to the Guidelines for the complete eligibility requirements.

Eligible activities must commence during the 2020-21 financial year for term 1 and term 2 2021 payments, and 2021-22 financial year for term 3 and term 4 2021 payments. All funds must be expended by 31 December 2021.

Services in receipt of this funding are required to use it for the operational costs of the preschool that prioritise:
- Free preschool, providing fee relief for families.
- Staff wages to enable retention of the workforce.