NSW parents to save on preschool thanks to new government subsidies

For the first time, the NSW government is stepping in to provide subsidies for preschool. Find out how much the move could save your family.

Sydney couple Sophie and Hayden Toppeross fork out around $700 weekly on childcare so a new fee subsidy that kicked in at the start of January is more than welcome.

For the first time, the NSW government is providing subsidies of up to $2110 per year for four and five-year-olds attending preschool in a long day care setting - on top of any federal government childcare subsidy families may receive.

Education minister Sarah Mitchell said families with kids aged three, four and five at community or mobile preschools will receive up to $4200 per year under the changes, which are part of the state government’s $1.3 billion Start Strong affordable preschool program.

“This government is investing in the futures of our children at a level never seen before and in a way that also helps parents with the household budget,” Ms Mitchell said.

For the Toppeross family, it will mean a saving of around $40 a week for their four-year-old son Hugo, who attends Explore and Develop early learning centre at Annandale.

Sophie Toppeross and her son Hugo, 4 and daughter Gigi, 18 months, at Explore and Develop Annandale. Picture: David Swift

“We took Hugo out of childcare when Covid hit as I was pregnant, but he started back in July last year and my 18-month-old daughter Gigi started two weeks ago, so it’s the most we’ve had to spend on childcare,” she said.

“Given we spend around $700 a week, the $2110 subsidy will basically mean we get three weeks of childcare free each year.

“This kind of grant is wonderful for a little family like ours, it really helps out. My husband works full-time and I’m a dance teacher and personal trainer and was keen to get back to work.

“We also want our kids to have the benefits of childcare - it’s so great for socialisation and for independence - simple things like learning to be responsible for your hat and water bottle.”

Explore and Develop director Su Garrett is in the process of informing all her families about the new funding assistance.

“The fee relief is extremely helpful for all our families, especially those struggling due to cost-of-living pressures,” she said.

“It’s particularly helpful for those families who are outside the threshold for receiving the federal government childcare subsidy, and it’s great the state government is able to step in and provide some funding for these families.

“Quality early childhood education can give kids a huge headstart to their formal schooling, but we know some families make the decision not to send their child, or to send them one day less, due to the high cost. This may make that choice a little easier.”

Sophie Toppeross and her son Hugo, 4 pictured with Su Garrett, director of Explore and Develop Annandale. Picture: David Swift

Premier Dominic Perrottet said the fee relief would ensure “brighter futures” for kids and their families across NSW.

“Research has shown that preschool is where the building blocks for lifelong success are established,” he said. “It is vital that we can support families in accessing quality early childhood education.”

Investing in the state’s youngest learners made good economic sense too, treasurer Matt Kean added: “Every $1 invested in early childhood education delivers a $2 boost to the NSW economy”.

Meantime Ms Garrett would also like to see similar measures to boost the budgets of early childcare workers, whose pay and conditions are mostly set by the Commonwealth.

“We want cheaper childcare for our families, but we also want our educators to be paid adequately for the work they do,” she said.