NSW families to save $4000 a year in new early childhood plan

Families with preschool-aged kids could be $4000 better off under a targeted cost of living package launched by the NSW government. See how much your family could save.

Families will save $4000 a year under a new early childhood education package worth almost $1.5bn.

The major budget bid to ease cost-of-living pressures for families with preschool-aged kids, comes alongside a plan to spend hundreds of ­millions of dollars on more ­development checks for kids under five.

From January next year, parents will be eligible to claim $4000 in fee relief for children aged three to five years who are attending community or mobile preschools.

For families with kids aged four and five attending long day care, parents can claim $2000 a year in rebates.

Fee relief will also be ­extended to kids attending ­Department of Education preschools, where parents will get the equivalentof five days a fortnight in fee relief.

Parents with kids in preschool could save up to $4000 a year.

A $64m package will be spent on a two-year pilot to support three-year-olds attending long day care centres.

Premier Dominic Perrottet said the state was leading the nation with its childcare ­reform.

“The first 2000 days of a child’s life are critical to their development and success and we want to ensure they get the beststart possible,” Mr Perrottet said.

“NSW is now leading the nation in providing the best developmental support, giving families right across the state the brightestof futures.”

Treasurer Matt Kean said the investment would benefit the economy now and into the future.

“Every $1 invested in early childhood education delivers a $2 boost to the NSW economy – it is a great investment for any treasurer,” he said.

NSW Premier Dominic Perrottet. Picture: Jeremy Piper

Early Childhood Minister Sarah Mitchell said the investment would allow families who previously missed out, to claim subsidies.

“Families using these services are not eligible for the Child Care Subsidy, so NSW’s commitment to long-term funding relief is significant and genuinely needed,” she said.

“At the end of the day what’s important is our littlest learners having access to great quality preschool programs.”

A further $376.5m will be invested in rolling out a suite of developmental checks for children before they start school andto make the baby “blue book” digital.

The government’s Brighter Beginnings package will see $38.6m spent on rolling out pregnancy conferences to more parents and$98.7m on opening more Aboriginal Child and Family Centres.

$5 billion NSW plan to boost childcare spaces

A middle income Sydney family with one child in full-time childcare will save up to $3,900 a year as part of a major state government plan to boost the number of places on offer and cut costs for parents.

The government will pledge $5 billion in funding over the decade to increase supply, by subsidising childcare centres that expand their operations or hire more staff.

The money will go to a fund to provide competitive grants for providers looking to expand, targeted at areas where a shortage of places provide the greatest disincentive for parents returning to work.

Next week’s budget will establish the “Affordable and Accessible Childcare and Economic Participation Fund” with an initial $775 million, with extra money to be paid into the fund each year.

The first grants to providers will be paid from the 2023-24 financial year.

NSW Premier Dominic Perrottet will pledge $775 million for a new childcare fund in the upcoming budget.

The NSW scheme is designed to work alongside the Albanese government’s childcare package – which will boost subsidy rates – by tackling supply shortages.

According to NSW Treasury modelling, the scheme will create 47,000 ongoing affordable childcare places, with the extra supply working to reduce demand-driven costs.

Under the NSW scheme, a middle-income Sydney family with one child in care could be up to $3,900 better off each year, with an equivalent family in regional NSW to save up to $7,800 yearly.

NSW Treasury expects the reforms to grow the economy by $17.4 billion each year over the decade – the equivalent of each family being $4,400 better off even if they do not have kids, according to a briefing provided to The Daily Telegraph.

However, the spending commitment means the state government has now promised almost $20 billion in budget funding over the past two weeks along.

Labor Leader Chris Minns called for more scrutiny paid to government debt, labelling it the “highest debt in the state’s history”.

The new scheme will work alongside PM Anthony Albanese’s childcare package. Picture: Sam Ruttyn

Treasurer Matt Kean. Picture: Flavio Brancaleone

“The debt interest is equivalent to the size of the NSW police budget and double the size of the TAFE budget,” he said.

Alongside the major spending to boost childcare places, more than $280 million will be committed in the budget to help more early childhood teachers and carers get into the workforce.

The package will support more than 18,000 people looking to get into the sector, by offering higher education scholarships and supplements for employers to keep staff.

Premier Dominic Perrottet labelled the childcare package a “transformational policy” which would help parents “pursue their hopes and aspirations”.

“Improving accessibility to childcare by investing in supply will provide practical assistance to families with young ones,” Mr Perrottet said.

Treasurer Matt Kean said the $5 billion investment will get up to 95,000 women to either enter the workforce or take on more hours and drive down the gender workforce participation gap by up to 14 per cent.

“Childcare is a tax on women working,” Treasurer Kean said.

“We need everyone who wants to participate in the economy given the best chance of doing so.”