Today the Legislative Council debated Abigail's motion calling on the NSW Labor government to properly fund community preschools, a sector that delivers high-quality early childhood education and care.
Ms ABIGAIL BOYD (15:05): I move:
(1) That this House notes that:
(a) community preschools are managed by volunteer parent management committees, are not‑for‑profit and have a particular focus on being inclusive, catering to all children, including children from backgrounds of economic disadvantage and children with disability;
(b) there are around 710 community preschools across New South Wales, from metropolitan areas to remote and rural areas;
(c) preschools are funded by the New South Wales Government, not the Commonwealth Government;
(d) community preschools provide high‑quality early education and care, with around 75 per cent of community-based preschools rated as exceeding in the National Quality Standard compared to around 25 per cent of all early childhood education and care services, which are predominantly long day care services; and
(e) community preschools are experiencing a workforce crisis, with an ageing workforce and difficulty attracting teachers and educators.
(2) That this House further notes that:
(a) preschools are losing staff to other sectors because those other sectors offer better pay and conditions;
(b) community preschool teachers and educators receive rates of pay up to 30 per cent less than their colleagues with the same qualifications and roles in state government schools and in school settings;
(c) the Victorian Government funds its preschools by 50 per cent more per child per year than the New South Wales Government does for its preschools;
(d) government funding to provide significant pay increases for teachers in schools and government preschools has not been matched for community preschools;
(e) the Commonwealth Government has funded 15 per cent pay increases for workers in long day care services;
(f) the early childhood education and care sector is highly feminised, with over 90 per cent of the workforce identifying as women, and as a result low rates of pay prevail and there is systemic gender undervaluation of the work being performed;
(g) funding for community preschools is solely derived from the New South Wales Government, with limited funding raised by fees and fundraising, and over 80 per cent of funding received by community preschools is spent on wages;
(h) last year the Independent Education Union, United Workers Union and Community Early Learning Australia filed for a supported bargaining authorisation, which enables the Government to be joined as a party to the bargaining and address the systemic concerns with pay and conditions in the sector;
(i) in July 2025, the Government sought to withdraw from the bargaining process, claiming they have no intention of providing additional support to community preschools to address the systemic and growing workforce crisis; and
(j) the Government has claimed they have no role in facilitating the attainment of fair pay and conditions in the sector, which they could do by providing greater state-wide coordination and financial support.
(3) That this House calls on the Government to address the workforce crisis in community preschools by:
(a) recognising the professionalism and expertise of early childhood teachers and committing to a principle of pay parity for early childhood teachers with teachers in school settings who often have the exact same qualifications;
(b) providing additional funding to support an uplift in pay for teachers and educators in community preschools; and
(c) working with unions and the not-for-profit preschool sector to establish and deliver an equitable and sustainable funding model for community preschools that emphasises quality and safety.
There are over 700 community preschools across New South Wales, from metropolitan areas to remote and rural areas. Community preschools are managed by volunteer parent management committees, are not‑for‑profit and have a particular focus on being inclusive. They cater to all children, including children from backgrounds of economic disadvantage and children with disability. Preschools are somewhat unique in the funding environment of the early childhood and education care sector. They are funded by the State Government and not the Commonwealth, which administers the childcare subsidy for centre-based services and family day care services.
Community preschools provide high‑quality early education and care. Around 75 per cent of community‑based preschools are rated by the National Quality Standard [NQS] as "exceeding", compared with around 25 per cent of all early childhood education and care services, which are predominantly long day care services. It is impossible not to identify the profit motive in the distinction in quality. Community preschools are not-for-profit and operate for the benefit of children. They deliver improved safety and quality compared with the long day care sector, where 70 per cent of providers are for-profit services.
The Australian Education Research Organisation has identified a clear and direct link between the quality of the service and child development. Its research found that children who attended services rated as "exceeding" had measurably improved early childhood development outcomes, which track through to positive NAPLAN results and lifelong outcomes. The key finding from the research is that access to services alone will not deliver outcomes. Both quality and access are needed to deliver outcomes for children. Simply meeting the NQS will not get us there.
The Government will undoubtedly trot out flimsy excuses about why it is refusing to fund a salary uplift for this overwhelmingly feminised industry. It will make offensive arguments about not-for-profit, community‑board-managed preschools somehow hoarding cash. The Government is apparently unaware that having a cash reserve is simply prudent management for unforeseen maintenance, potential relocation costs and other unforeseen expenses. We need to create an early learning sector where standards of the highest quality are the norm so that families, carers and children can have confidence that there will be safety, dignity and respect for children and workers no matter which service they use.
We need to foster more services like those in the community preschool sector. Rather than supporting and nurturing the sector, the New South Wales Government has stubbornly refused to engage. It was eventually forced by the Fair Work Commission to appear at and potentially be joined as a party to the community preschool supported bargaining application to address systemic concerns about pay and conditions in the sector. The community preschool sector is seriously struggling.
At our parliamentary inquiry into early childhood education and care, we heard from Janene Rox, the director of Cronulla Preschool and an Independent Education Union preschool ambassador. Her evidence was damning. She told the committee:
"Community preschools in particular, where I work, face a perfect storm: chronic staff shortages and wages far below that of our schoolteachers. We are qualified to teach in schools as well. The crucial professional development, particularly in child protection and the Child Safe Standards, is often done in unpaid time. The needs of children, including children's safety, wellbeing, learning and development are always put before profit, but it is also done at the expense of educators and teachers themselves. We have just seen so many dedicated educators and teachers leave the profession because they feel undervalued, unsafe and exhausted. When experienced, knowledgeable and previously passionate staff leave, this increases the risk to children exponentially."
The simple fact is that quality costs money, and the New South Wales Government does not fund quality preschool adequately. Victoria funds preschools at a rate per child of 50 per cent more than in New South Wales. We know that over 80 per cent of all funding provided to community preschools goes towards wages. If we value children's futures, we must value the people who teach and care for them. The Government will make the argument that it is not the employer in community preschools and so it has no responsibility for wages. That is a wilful misapprehension and a misstatement of reality. Nobody has ever claimed that the New South Wales Government is the direct employer, but it is the predominant funding source. Preschool funding is the Government's responsibility, and funding is overwhelmingly for workforce wages.
The Government's refusal to increase funding to accommodate wage increases will have one of two impacts: either fees will have to rise in order to support the wages needed to stem the workforce crisis, or staffing levels will have to be reduced in order to keep services open, driving down quality. We have already heard from services that have said they had to forgo professional development and investment in workforce development just to remain afloat. The Government's intransigence will drive a race to the bottom. The solution is clear. We need pay parity with teachers to not only retain staff but also attract new staff; funding from government that truly reflects the cost of supporting all children, including those with disability; and a model that drives and nurtures quality and access. Whether the Government will do the right thing and fund this sector properly is squarely within its control.
Then the Labor government spoke on the motion.
The Hon. COURTNEY HOUSSOS (Minister for Finance, Minister for Domestic Manufacturing and Government Procurement, and Minister for Natural Resources) (15:10): I move:
That the question be amended by:
(1)In paragraph (2) (b) inserting at the end "due to varying industrial arrangements between State government employees and those covered under the Fair Work Act;".
(2)In paragraph (2) (d) inserting at the end "due to varying industrial arrangements between State government employees and those covered under the Fair Work Act;".
(3)Inserting after paragraph (2) (e):
(f)the Government has provided substantial additional funding to community preschools since the COVID‑19 pandemic, with total funding to community preschools having increased by more than 106 per cent since 2020;
(g)the newly announced Expanding Quality Access Program includes capacity to increase wages should providers choose to;
(4)In paragraph (2) (f) inserting at the end "which is a matter for consideration by the Fair Work Commission;".
(5)In paragraph (2) (g) omitting "solely" and inserting instead "partially".
(6)In paragraph (2) (i) omitting "claiming they have no intention of providing additional support to community preschools to address the systemic and growing workforce crisis" and inserting instead "as the Government is not the employer in the community preschool sector;".
(7)Omitting paragraph (2) (j) and inserting instead:
(j)the Government has attempted to facilitate the attainment of fair pay and conditions in the sector through a 106 per cent uplift in program funding since the COVID‑19 pandemic;
(k)the average cash on hand of parties to the supported bargaining process has increased from approximately $685,000 in the financial year 2022-23 to approximately $738,000 in 2023-24, an increase of 7.72 per cent; and
(l)the Government supports the rights of workers to bargain with their employer for higher wages and avail themselves of the industrial instruments available for them to do so.
(8)Inserting after paragraph (2):
(3)That this House encourages all parties to participate in negotiations in good faith.
(9)In paragraph (3) omitting "Government" and inserting instead "bargaining parties".
The Hon. COURTNEY HOUSSOS: My amendment continues:
(10)Omitting paragraph (3) (b) and (3) (c) and inserting instead:
(b)paying workers fairly in community preschools;
(c)acknowledging the important programs in the 2025-26 budget which address burnout challenges, increase qualification pathways and completions, and improve access to quality professional learning that deliver:
(i)$19.6 million for scholarships and career advancement;
(ii)$3.4 million for a TAFE NSW quality professional learning.
(d)acknowledging that key progress has been made to address workforce issues by:
(i)awarding of over 2,000 scholarships, seeing 147 early childhood teachers graduating via an intensive four‑year program; and
(ii)over 1,000 educators participating in fee‑free TAFEdelivered professional learning.
Community preschools are incredible. They are fantastic organisations that, as I said yesterday when the Government announced its Expanding Quality Access program, have often served their communities for generations. They are wonderful, local, quality providers and our Government wants them to do more. We want them to be able to provide more spaces for more children, perhaps for more weeks of the year, perhaps for an increased range of ages, perhaps for longer hours, and that is what we are seeking to do. The Government has put $100 million on the table for the Expanding Quality Access program. It was a significant announcement in this year's budget, a program that has been championed by the Deputy Premier and one that we are really proud to introduce.
The amendments seek to make some factual changes to that program. I note the comments of the mover of the motion and say that while the Government really values the work that educators do in our community preschools, it does not employ them. That is not the case. It funds programs and has for a long time. Even in my 10 years in this place, there have been some changes to the way in which programs are administered, and no doubt there will be more changes in the future. But the important thing to note is that these preschools are community‑based and community‑run organisations that have received a significant increase in government funding.
It is true that the Government has been compelled to participate in the Fair Work Commission process. That process is underway at the moment, so I will be very cautious in my acting ministerial capacity to limit my comments in relation to those negotiations so as to allow them to occur. But I acknowledge the important role that our community preschools play. We have more than 700 of them in New South Wales, providing care for about 49,000 children each and every day. As we rebuild public confidence in the early childhood education and care sector it is so important that we have quality local services, like our community preschools, providing that care. That is why we want to expand their services.
The Government has some targeted workforce initiatives, and in moving amendments to the motion I am seeking to recognise some of that important work. We have invested in specific workforce measures via a range of existing and new sector‑specific programs. The budget also included an investment to support programs to grow and strengthen the Aboriginal early childhood education and care workforce, from study preparation and scholarships to mentoring, professional learning and peer support. Other programs are in place to provide training through TAFE. But the motion is not correct in saying that the Government sought to withdraw from the Fair Work Commission process. I think it is worthwhile to put that on record.
The Department of Education is not a bargaining party, but I am advised that it has supported the process through attending all seven supported bargaining conferences to date and by providing information to assist the commission. The Government has a range of funding mechanisms available to provide support to community preschools. We think it is important to provide that support and will consider carefully how to do it in the best way. As I said yesterday, there is now $100 million on the table to expand our community preschools, and the Government encourages them to apply for that funding when applications open in November.
After other members contributed to debate, including the Coalition and members of the Crossbench, Abigail spoke in reply.
Ms ABIGAIL BOYD (15:36): In reply:
I thank all members who contributed to debate on the motion. I also thank the Hon. Rod Roberts for his kind words. I care very deeply about this issue. As the Hon. Rod Roberts' said, not‑for‑profits and community preschools are the very best when it comes to quality and safety. That is borne out by regulatory statistics, which show that 75 per cent of them are rated as higher than meeting standards as opposed to only 20 per cent to 25 per cent of the general sector—so we know they are better.
To date, the Government's response to the revelations of the past 12 months has been to go after bad providers. That is important, but it is also really important to look at who is doing well in the sector and why, and encourage and grow them so that we have more of those services and fewer bad services. That is what this motion is trying to achieve. But we know that without a wage increase, we are really putting upon people who are already overworked and underpaid. They could go next door and work for a private provider, or they could go to work in a school, and they would be paid a lot more. Underpaying them is not fair and it undervalues their work. We need to pay them more money.
I take issue with a number of factual matters in the Government's proposed amendment. The first is the reference to the Government having increased funding by 106 per cent. The Greens keep asking for data on exactly what that is because it does not accord with the records of the community preschool sector. In the absence of that, and given how much everything else has increased during the period, I would like to understand how that 106 per cent plays out in real terms.
The argument that not‑for‑profit community preschools have loads of money lying around just waiting to be used is quite misleading. The amount that has been declared as the average cash on hand amount is not the mean cash on hand of these services. A lot of them are on peppercorn rents. As we know, a lot of peppercorn rent arrangements are drying up and are quite unpredictable. The services need to have enough cash on hand to be able to move premises and to make ongoing rental payments. Also, maybe they have to pay staff more because they are not getting enough funding through, and the cash can last for only a certain period. Relying on those reserves to argue against funding teachers' wages is really quite offensive, so The Greens do not agree with that amendment. I seek leave for an extension of time of one minute to deal with the amendments.
Leave granted.
Ms ABIGAIL BOYD: The Minister's announcement yesterday of the $100 million of Government funding is problematic. As the Hon. Sarah Mitchell said, that is not something the sector was asking for. The money is only available for preschools that choose to become long day care providers and then transfer from New South Wales funding to Commonwealth funding. The New South Wales Government only expects around 10 per cent of preschools to do that. While we support efforts to have not-for-profits providing long day care, to suggest the solution is for those preschools to transition to long day care is really problematic—and especially so when they are not getting funding for preschools.
Finally, I refer to the idea that because the New South Wales Government is not the direct employer it does not get involved in the bargaining process. It is worth noting that when a similar process was being worked through in relation to long day care centres, even though the Commonwealth was not the direct employer it was party to the Fair Work Commission proceedings and supported the recommendations and facilitated the increase in teacher wages. That is all we are asking for from the New South Wales Government, so that this much better quality sector can thrive.
The PRESIDENT: Ms Abigail Boyd has moved a motion, to which the Hon. Courtney Houssos has moved an amendment. The question is that the amendment be agreed to.
The House divided.
Ayes 20
Noes 19
Majority 1
Amendment agreed to.
The PRESIDENT: The question now is that the motion as amended be agreed to.
Motion as amended agreed to.
Read the full debate in Hansard via this link.