Overview

Start Strong provides funding to support the provision of affordable quality preschool education for children in the 2 years before school. The program aims to increase the number of children participating for at least 600 hours per year or 15 hours per week in a quality early childhood education program. Allowing community preschools to request a funding review where the service meets extenuating circumstances criteria aligns with the objectives of Start Strong and the policy goals of equity and boosting access to early learning for families.

Eligibility criteria

To be eligible for a funding review through any of the below categories, a service must meet the following criteria:

• be funded under the department’s Start Strong for Community Preschools program, and
• has not had funding reviewed in the same calendar year.

Services who fulfil the eligibility criteria may apply for a funding review under one of the following categories where the eligibility criteria for that category is met:

Reason for funding review

Refer to the section for each category for the full eligibility criteria. Where a service is unable to meet eligibility criteria of any of the categories outlined in these guidelines, but is experiencing financial hardship due to enrolment changes, they may contact the department outlining their circumstances. The department may be able to approve a funding review in limited circumstances outside these categories and/or assist services by other means.

Where a service receives Service Safety Net funding under Start Strong, the increase in enrolments or places must result in a recalculated funding amount above the Service Safety Net funding threshold in order to be eligible for a funding review for Program Payments. A service may still be eligible for a funding adjustment for Fee Relief Payments under Start Strong for Community Preschools provided it can fulfil the eligibility criteria of one of the categories.

The department may review and update categories and eligibility criteria outlined in these guidelines from time to time to ensure funding reviews are available to services in extenuating circumstances.

Category 1: Increased enrolments, service operating less than 2 years

To be eligible for a funding review through Category 1, a service must meet the following criteria, in addition to the general eligibility criteria outlined above:

• has been operating for less than 2 years (from first service approval date)
• has experienced growth in enrolments, and
• has experienced financial hardship resulting from increased enrolments

Services must be able to provide evidence of financial hardship resulting from increased enrolments.

Category 2: Increased enrolments, service operating 2 or more years

To be eligible for a funding review through Category 2, a service must meet the following criteria, in addition to the general eligibility criteria outlined above:

• has been operating for more than 2 years (from service approval date, including where a service relocation may have occurred)
• must have experienced growth in enrolments of at least 20% since the last Annual Preschool Census
• must have experienced growth in enrolments of at least 20% since the Annual Preschool Census 2 annual censuses ago and
• has experienced financial hardship resulting from increased enrolments.

For example:

• Community preschool A has been operating for 10 years.
• The preschool has seen an increase in enrolments from 36 to 48 between the August 2024 census and the time of enquiry (e.g. April 2025), which is an enrolment growth of approximately 33%.
• Between the August 2023 census and the August 2024 census the service had a decrease in enrolments from 40 to 36 (a decrease of 10%). These changes equate to a net growth in enrolments of 20% when comparing April 2025 to August 2023 census data.
• The service has experienced financial hardship due to the increase in enrolments and is therefore able to request a funding review.

Category 3: Significant increase in 600 hour places offered

To be eligible for a funding review through Category 3, a service must meet the following criteria, in addition to the general eligibility criteria outlined above:

• enrolments for less than 600 hours make up greater than or equal to 20% of total enrolments at the last Annual Preschool Census
• confirms in writing to the department it will increase, or has increased 600 hour (or more) enrolments by at least 20% since last Annual Preschool Census

For example:

• Community Preschool B has 60 children enrolled in total. 18 of these children are enrolled for less than 600 hours which equates to 30%.
• The service intends to change its operations so that it can enrol 12 of the 18 children for 600 hours. This change would increase the number of children enrolled for 600 hours or more by 20%.

Interested services can demonstrate their eligibility for a funding review through Category 3 prior to making operational changes. If eligible and once service has completed operational changes, an ad hoc data collection showing all current eligible enrolments will be requested.

Category 4: Start Strong Capital Works grant recipient

To be eligible for a funding review through Category 4, a service must meet the following criteria, in addition to the general eligibility criteria outlined above:

• has been awarded a Start Strong Capital Works Grant to extend, renovate or relocate its existing centre-based community preschool facility
• has completed the extension or renovation
• has received approval for its increase in service capacity (recorded in the National Quality Agenda IT System) and increased its enrolments.

Note: Capital works grants awarded to providers for the construction of a new centre-based community preschool facility are not eligible for a funding review. These services will need to apply for funding through the process that is in place for new centre-based community preschools.

Category 5: Return to normal operations following crisis event

To be eligible for a funding review through Category 5, a service must meet the following criteria, in addition to the general eligibility criteria outlined above:

• must have experienced decrease in enrolments of more than 10% in the last Annual Preschool Census
• financial hardship resulting from decreased enrolments
• must have experienced growth in enrolments of at least 10% since the last Annual Preschool Census to reflect return to normal operations.

A crisis event may include, but is not limited to:

• natural disasters, such as flooding, bushfires and drought
• environmental events, such as coastal erosion and major animal infestations
• unplanned changes to premises, such as cancellation of lease or sale of premises
• other unplanned localised events which cause significant impact on service delivery.

Application process

Enquiries for a funding review for Start Strong funded community preschools are to be made in writing to the department through the contact details on this page. Interested services will need to demonstrate their eligibility for a funding review in their enquiry.

Services who satisfy the criteria for one of the categories in the initial assessment will be asked to complete an ad hoc data collection covering a 2-week representative period. The ad hoc data collection will be used to assess the service’s eligibility and to calculate the service’s funding allocation if the application is successful. Services can demonstrate their eligibility for a funding review through Category 3 prior to making operational changes, and then complete an ad hoc data collection once the changes are made.

When considering applications for a funding review, the department can:

• make decisions appropriate to individual situations
• ensure that funding decisions support the NSW Government’s target of supporting preschool access for all children in the years before school
• decline a service’s request for a funding review.

Eligible community preschools may qualify for an adjustment to other enrolment-based funding, where applicable.

Payments and spending rules

Adjustments to funding will be paid to successful applicants via the Early Childhood Contract Management System (ECCMS).

The amount of funding provided will be based on the department's assessment of the information provided in the ad hoc data collection and the funding criteria set out in the relevant program guidelines, for example, as detailed in ‘3. Funding’ of the Start Strong for Community Preschools guidelines.

Additional funding for eligible services is to be used for the purposes detailed in the relevant program guidelines on the department’s website, for example, as detailed in the spending rules of the Start Strong for Community Preschools guidelines.

Additional requirements

Services that receive additional funding need to fulfil the requirements detailed in the relevant program guidelines on the department’s website. For example, services need to include the additional funding when completing their financial accountabilities.

Contact us

To speak to someone about Start Strong for Community Preschools, please contact the department by:

• calling 1800 619 113
• emailing ecec.funding@det.nsw.edu.au