Australian Government To Invest $1 Billion To Establish The Building Early Eduation Fund

In order to construct early childhood education and care (ECEC) centers, including in the regions and outer suburbs, the Australian government will invest $1 billion to create the Building Early Education Fund (the Fund).

The Fund will construct and grow about 160 ECEC centers in underserved areas, such as regional Australia and the outer suburbs.The fund consists of: 

• $500 million in targeted capital award rounds that will begin in July 2025 and target state and local governments as well as high-quality non-profit ECEC providers to expand the capacity of current ECEC programs and launch new ones. Priority and underserved markets, such as regional areas and the outlying suburbs, will be the focus of grants. Services will be situated on or close to school properties whenever feasible.
• In order to expand the availability of services, the Commonwealth has set aside $500 million for future investments in the ownership and leasing of a portfolio of early childhood education and care facilities. Of those funds, $2.3 million will be used over two years, from 2024 to 2025, to conduct a business case that will guide the final design.

About 160 new or expanded ECEC services are anticipated to be supported by the Fund. An additional 12,000 ECEC spots for Australian families in need are anticipated as a result of this funding.

Analysis of a range of sources, including supply, need, and disadvantage data, will establish priority locations. To assist in location identification, the government will collaborate with communities and state, territorial, and local governments. In the upcoming months, additional location details will be released.

The government is contributing $1.03 billion to the Building Early Education Fund, which includes:

• $529.6 million for the grants component spread over four years, from 2024 to 2025 (plus an extra $1.2 million in 2028 to 2029).
• $500.0 million set aside in a contingency reserve for future investments;
• $2.3 million over two years, from 2024 to 2025, to the Department of Education to conduct a business case for the Commonwealth to invest in owning and leasing a portfolio of early childhood education and care centers in order to expand the supply of ECEC services.

The Fund is a significant step in laying the groundwork for a universal early education and care system and will expand access to high-quality early childhood education and care (ECEC) for families, especially those in outlying suburban and regional communities, in conjunction with the government's historic $3.6 billion investment in wage increases for the sector.

Reference:
Building Early Education Fund, Department Of Education