Start Strong guidelines for community preschools

This page describes the objectives, funding information and provider requirements of the Start Strong for Community Preschools program.

 

Purpose

Start Strong funding for community preschools provides funding for the provision of preschool education delivered for the 2 years before school to children enrolled in community preschools in NSW. At least 600 hours per year or 15 hours per week is the recommended level of participation in a quality early childhood education program in the year before school.

This approach is consistent with the NSW Government’s National Partnership Agreement on Universal Access to Early Childhood Education with the Commonwealth Government. Funding is targeted to 3, 4 and 5 year old children in the year(s) before school, children aged 3 and above from low income and Aboriginal families, and children with disability and additional needs.

Objectives

Start Strong aims to improve affordability of early childhood education and increase the number of children participating for 600 hours in a quality early childhood education program in the year before school.

Start Strong promotes universal access and priority of access by providing:

  • higher base funding rates based on Socio-Economic Index for Areas (SEIFA) score of disadvantage
  • additional equity funding for children aged 3 years and above from low income or Aboriginal families and children with disability and additional needs
  • loadings for outer regional, remote and very remote services
  • loadings for English language needs
  • subsidies for non-equity 3-year-old children

Outcomes

Start Strong aims to make 600 hours of preschool participation in the 2 years before school more affordable by reducing fees for children, with priority given to reducing fees for children in the year before school, and children aged 3 years and above from low income and Aboriginal families, and children with disability and additional needs.

Spending rules

Start Strong funding is to be used for the purposes detailed below:

  • Fee pass through (criteria detailed below)
  • Operating expenses of the service, for example:
    • Salary and wages
    • Educational resources
    • Other operating costs

The funds need to be expended in line with the individual services reporting period (calendar or financial year).

Fee pass-through criteria for non-equity 3 year olds

For non-equity 3-year-old children, services will be required to pass through at least 50 per cent of the new base rate funding for these children. This fee pass through will be measured using the data collected through the August 2019 Preschool Census to compare a service’s reported fees in the August 2018 Preschool Census. Subsequent census and/or other collection data may be used to measure this fee pass through.

Fee pass through rates for this cohort will be recalculated each year according to the scaled subsidy increase over 4 years. Services will receive an increase in the proportion of Start Strong base rates for this new cohort of 3 year old children each year from 2019-2022 – 25% in 2019, 30% in 2020, 40% in 2021 and 50% from 2022.

Where services have a higher fee for non-equity 3 year old children than non-equity children in the year before school, it will be expected that the fee reduction first be applied to lowering fees for non-equity 3 year old children. Fees for non-equity 3 year olds should not be lower than non-equity children in the year before school.

If fees for non-equity 3-year-old children and non-equity children in the year before school are the same, it will be expected that the fee reduction be applied to lowering fees for all children. This includes ensuring that equity fees for all children remain below non-equity fees, and that fees for non-equity 3 year olds not be lower than fees for children in the year before school.

Historical Fee pass-through criteria excluding non-equity 3 year olds

Services were required to pass through at least 75 per cent of the increased funding to families by lowering their daily fees. To determine the value of the funding increase, funding received by preschools from 1 January 2017 to 31 December 2017 was compared to the amount they received in 2016 under the Preschool Funding Model (PFM), pro-rata.

The department monitors fee pass through using the data collected through the 2017 and 2018 Preschool Census to compare a service’s reported fees in the August 2016 Preschool Census. Fee reduction is multiplied by the number of enrolments to determine whether 75% of the funding increase was utilised for fee reduction. Community preschools that have successfully reduced fees are expected to maintain 2017 fee levels, adjusted for CPI, in 2018 and future years.

In exceptional circumstances where the preschool could not reduce fees by at least 75 per cent, a justification must be provided.

Current fee guidelines

The department is focused on supporting participation for key equity/priority of access groups. Accordingly, children from Aboriginal families, children with disability and additional needs and children from low income families must have access to lower daily fees than for non-equity children.

The fee for non-equity 3 year olds must not be lower than the fee for non-equity children in the year before school.

The department recognises that preschool enrolments may go up or down in subsequent years and that preschools may need to review fees occasionally. However, it is expected that equity fees and fees for children in the year before school remain low and as close as possible to the reduced 2017 fees.

The department periodically conducts reviews of preschool services and may request a funding compliance review in these or other circumstances.

Start Strong aims to make 600 hours of preschool participation in the 2 years before school more affordable by reducing fees for children. While the department recognises that fee decisions are at the discretion of services, the department will consider affordability for families when reviewing applications for Start Strong funding. As such, new services are encouraged to ensure that fee structures do not impact on participation in their community.

Service eligibility criteria

To be eligible for grants under this program as a centre-based preschool, service providers must meet all of the following criteria:

  • be a not-for-profit, community-based preschool
  • be an approved early childhood education and care service under the National Law and Regulations
  • deliver an early childhood education program designed by a degree qualified early childhood teacher in accordance with The Early Years Learning Framework (providing a structured, play-based early childhood education) under the National Partnership Agreement on Early Childhood Education
  • comply with the Terms and Conditions of the Early Childhood Education Grants Program.

Enquiries for funding through Start Strong for Community Preschools are to be made in writing to the department at the contact details on this page. Interested organisations will need to demonstrate their eligibility for funding, analysis of local need and demand, proposed number of preschool places to be created and capability to deliver on the objectives and outcomes of Start Strong, including affordability for families.

Child eligibility criteria

To be eligible for funding under Start Strong, a child will need to be:

  • At least 3 years old on or before 31 July in that preschool year and not in compulsory schooling; and
  • Attending an early childhood education program.

Funding grants will not be provided for places that are Child Care Subsidy approved.

Citizenship and residency status are not taken into consideration for child eligibility for funding under Start Strong.

Refer to section 'Calculation of funding' of these guidelines for the funding rates for different children.

Priority of access

Services are required to give equal priority of access to:

  • children who are at least 4 years old on or before the 31 July in that preschool year and not enrolled or registered at a school
  • children who are at least 3 years old on or before 31 July in that preschool year and from low income and/or Aboriginal families
  • children with English language needs
  • children with disability and/or additional needs
  • children who are at risk of significant harm (from a child protection perspective).

There is no order of priority assigned to the list of points above. Priority must be given to the groups outlined above before any other groups, including non-equity 3 year olds.

The guidelines are intended to assist services with making enrolment decisions, in a way that seeks to allocate places to those in the greatest need. However, the particular community needs of the preschool will also be relevant. Services may consider the hours children are enrolled at other funded services when making enrolment decisions.

The department will compare data collected through the August 2021 Preschool Census to the service’s reported enrolment in the August 2020 Preschool Census to review priority of access. The department periodically conducts reviews of preschool services and may request a funding compliance review in these or other circumstances.

Mobile preschools

Mobile preschools on a fixed term mobile contract (or mobile specific funding from the Department) are not in scope under Start Strong.

Mobile preschools on fixed term opt in contracts will have special implementation arrangements for Start Strong funding for non-equity 3 year olds and Start Strong equity funding for children with disability and additional needs.

Mobile preschools that elected not to enter into a fixed term mobile contract will be funded under Start Strong.

Calculation of funding

Start Strong Preschool funding is calculated based on the data entered in the preschool census, including the number and hours of enrolment, and the number and characteristics of children enrolled. For this purpose, the data entered by preschools via the preschool census is required to be correct, true and not misleading in any respect, and consent forms must be completed for each staff member and for each child enrolled. Preschools may be audited to confirm consent has been received to enter personal information and the accuracy of data entered in the preschool census or any other data collection

Community preschools including mobile preschools need to complete 2 types of consent forms, one for each staff member and one for each child upon enrolment and prior to completing the Annual Preschool Census. Refer to section ‘Completing consent forms’ section for further information.

From 1 July 2017, only children enrolled for 600 hours will receive the maximum rate of funding, with children enrolled for fewer hours attracting a pro-rata amount according to Table 1.

The rate of base funding per child reflects the average income of families with children aged 0-5 years in the service’s Socio-Economic Index for Areas (SEIFA) area.

Funding allocation is calculated on a per-child basis and a percentage of the applicable base rate is awarded depending on hours of enrolment:

Table 1: Funding calculation

Per child hours of enrolment offered per year Indicative average hours per week, based on a 40-week year Percentage of per child base rate received

600 hours or more

15 hours or more

100%

480 to less than 600 hours

12 to less than 15 hours

50%

400 to less than 480 hours

10 to less than 12 hours

35%

320 to less than 400 hours

8 to less than 10 hours

20%

Greater than 240 to less than 320 hours

greater than 6 to less than 8 hours

5%

240 hours or fewer

6 hours or fewer

Nil


Funding to services per child is calculated based on the following table:

Table 2: Funding calculation per SEIFA band

SEIFA Funding Band 600 hours or more 480 to less than 600 hours 400 to less than 480 hours 320 to less than 400 hours greater than 240 to less than 320 hours 240 hours or fewer


100%

50%

35%

20%

5%

0%

SEIFA band 1

$6,971

$3,486

$2,440

$1,395

$349

$0

SEIFA band 2

$6,971

$3,486

$2,440

$1,395

$349

$0

SEIFA band 3

$6,971

$3,486

$2,440

$1,395

$349

$0

SEIFA band 4

$6,971

$3,486

$2,440

$1,395

$349

$0

SEIFA band 5

$6,971

$3,486

$2,440

$1,395

$349

$0

SEIFA band 6

$6,971

$3,486

$2,440

$1,395

$349

$0

SEIFA band 7

$6,971

$3,486

$2,440

$1,395

$349

$0

SEIFA band 8

$6,971

$3,486

$2,440

$1,395

$349

$0

SEIFA band 9

$6,774

$3,387

$2,371

$1,355

$339

$0

SEIFA band 10

$6,299

$3,150

$2,205

$1,260

$315

$0

SEIFA band 11

$6,224

$3,112

$2,179

$1,245

$312

$0

SEIFA band 12

$6,017

$3,009

$2,106

$1,204

$301

$0

SEIFA band 13

$5,625

$2,813

$1,969

$1,125

$282

$0

SEIFA band 14

$5,295

$2,648

$1,854

$1,059

$265

$0

SEIFA band 15

$5,028

$2,514

$1,760

$1,006

$252

$0

SEIFA band 16

$4,738

$2,369

$1,659

$948

$237

$0

SEIFA band 17

$4,489

$2,245

$1,572

$898

$225

$0

SEIFA band 18

$4,489

$2,245

$1,572

$898

$225

$0


Subsidies for non-equity 3 year olds are set at a proportion of the equivalent year before school base rate. This proportion is being implemented over a 4 year period. Funding to non-equity 3 year olds is calculated based on the following proportions of base rates:

Table 3: Non-equity 3 year old funding proportions (2019 onwards)

Year Percentage of base rate from table 2 received

2019

25%

2020

30%

2021

40%

2022 (and ongoing)

50%


Table 4: Funding calculation per SEIFA band for non-equity 3 year olds (40% of equivalent year before school base rate, in 2021)

SEIFA Funding Band 600 hours or more 480 to less than 600 hours 400 to less than 480 hours 320 to less than 400 hours greater than 240 to less than 320 hours 240 hours or fewer


100%

50%

35%

20%

5%

0%

SEIFA band 1

$2,789

$1,395

$976

$558

$140

$0

SEIFA band 2

$2,789

$1,395

$976

$558

$140

$0

SEIFA band 3

$2,789

$1,395

$976

$558

$140

$0

SEIFA band 4

$2,789

$1,395

$976

$558

$140

$0

SEIFA band 5

$2,789

$1,395

$976

$558

$140

$0

SEIFA band 6

$2,789

$1,395

$976

$558

$140

$0

SEIFA band 7

$2,789

$1,395

$976

$558

$140

$0

SEIFA band 8

$2,789

$1,395

$976

$558

$140

$0

SEIFA band 9

$2,710

$1,355

$949

$542

$136

$0

SEIFA band 10

$2,520

$1,260

$882

$504

$126

$0

SEIFA band 11

$2,490

$1,245

$872

$498

$125

$0

SEIFA band 12

$2,407

$1,204

$843

$482

$121

$0

SEIFA band 13

$2,250

$1,126

$788

$450

$113

$0

SEIFA band 14

$2,118

$1,060

$742

$424

$106

$0

SEIFA band 15

$2,012

$1,006

$704

$403

$101

$0

SEIFA band 16

$1,896

$948

$664

$380

$95

$0

SEIFA band 17

$1,796

$898

$629

$360

$90

$0

SEIFA band 18

$1,796

$898

$629

$360

$90

$0

The above rates are subject to change, and are at the discretion of the department. Grants will not be provided for places that are Child Care Subsidy approved. Table 4 shows the funding calculations for non-equity 3 year olds for 2021, where 40% of the equivalent year before school base rate will be funded.

Low Income and Equity Funding

Identified targeted group Rate per child Detail

Aboriginal and/or Torres Strait Islander children

$6,971

Children from Aboriginal and/or Torres Strait Islander backgrounds receive the highest base rate funding across all locations.

Services must record Aboriginal and/or Torres Strait Islander status on the child’s enrolment form.

No other form of documentation is required. The information on the enrolment form may have been obtained verbally from the child’s parent or guardian.

Children from low income backgrounds

$6,971

Children from a family holding a Health Care Card or Pensioner Concession Card (where the child is a named dependent on the card), or a Veteran Card, issued by the Australian government receive the highest base rate funding across all locations. The Federal Government has confirmed that Health Care Cards issued in the child's name only are not means tested. Therefore children with their own Health Care Card will not be eligible. This includes Foster Care Health Care Cards and Health Care Cards for children with disability.

Services must keep a copy of the relevant card to show proof that it was valid at the time of the preschool census, or for a prior period during that same preschool year, for example, at the time of enrolment.

Where the relevant card expired during the preschool year, the service should engage with the family to obtain a copy of the new card, if available.

Where the relevant card expired and has not been replaced, it is at the discretion of the service to determine the fee structure for families. The daily equity fee (see current fee guidelines above) must be charged where a child is recorded as low income in the census and therefore receives the highest base rate funding.

Children with disability and additional needs

$6,971

One of the following must be kept on record as evidence of the child’s disability or additional needs:

  • The child’s NDIS reference number
  • A copy of the most recent and relevant report, assessment or letter that outlines the child’s disability or additional needs from a relevant professional. Documentation must be on letterhead and signed by the relevant professional.

Services must keep a copy of this documentation on the child’s preschool file to show proof that they were valid at the time of the preschool census or for a prior period during that school year.

Relevant professionals are:

  • a General Practitioner (GP)
  • an early childhood teacher or primary teacher with an additional qualification in Special Education who is not employed by the preschool which the child attends
  • an audiologist, registered psychologist, paediatrician, psychiatrist, speech pathologist, occupational therapist, a professional qualified to administer psychometric assessments, or other relevant medical specialist.

Children who are part of multiple equity groups will only be eligible for one amount of equity loading per child.

Equity funded children enrolled for fewer than 600 hours will attract a percentage of the funding rate calculated according to their hours of enrolment, as shown in Table 1.

*In recognition of the fact that 600 hours per year is not always possible for children with disability and additional needs, an exception can be granted to children with disability who are enrolled for a minimum of 300 hours per year. For this exception to be granted, the preschool must indicate that they will ensure the child’s Individual Learning Plan (ILP) includes a progressive plan to increase to 600 hours per year prior to school commencement. The department will monitor this through reporting requirements and the annual audit program. Funding to children enrolled for a minimum of 300 hours per year will be provided at the full Start Strong equity rate.


Regional Loading

Services will receive an additional loading per funded child based on the ARIA+ (2011) Remoteness Classifications. The loading is not dependent on 600-hour enrolments. On top of the base rate funding:

  • Preschools in ARIA+ remote and very remote areas will receive an additional loading of $1,355 per eligible child per annum.
  • Preschools in ARIA+ outer regional areas will receive an additional loading of $921 per eligible child per annum.

The full loading will also apply for all non-equity 3 year old enrolments.

English Language Loading

Children with English language needs will receive an additional language loading of $435 across all locations. The loading will apply when the service selects ‘English Language Assistance Required’ in the Preschool Census, and is not dependent on 600-hour enrolments.

This loading is provided where a child requires assistance with English language needs. This includes where a child requires assistance with Braille or with sign language (e.g. Auslan).

The loading is not provided to all children with a Language Background Other than English where this assistance is not required.

The full loading will also apply for all non-equity 3 year old enrolments.

If a child requires assistance with English language needs, such as an interpreter or any other language resource, this information must be recorded and available on file.

Higher Order Multiple base rates

The Higher Order Multiple base rate is $6,971 for each child from the third child in the multiple onwards (i.e. not for the first 2 children) regardless of hours enrolled across all locations.

Higher Order Multiple funding will be applied under the following circumstances:

  • Only for families with triplets or multiple children above triplets, i.e. quads, septuplets etc.
  • Only for 3, 4 and 5-year-old children.

The non-equity 3 year old funding scale will be applied to the Higher Order Multiple base rate for eligible non-equity 3 year old children.

Evidence of applicability will be based on Annual Preschool Census data that shows for the siblings:

  • Same date of birth (copy of Birth Certificate to be kept by the preschool service provider enrolling the children)
  • Same address
  • Enrolled at the same preschool.

Service Safety Net

The Service Safety Net will provide an allocation of $139,420 per annum to services that meet all of the following eligibility criteria:

  1. has a licensed capacity of 20 or fewer children under the Children (Education and Care Services National Law Application) Act 2010
  2. has a minimum of 5 eligible funded children (aged 4 and above in the year before school; and 3-year-old equity children) each enrolled for 600 hours or more per annum*
  3. has a maximum of 20 children aged 4 and above in the year before school and 3-year-old equity children each enrolled for 600 hours or more per annum (enrolments of non-eligible children are not counted for Service Safety Net purposes)
  4. has an ARIA+ classification of Inner Regional, Outer Regional, Remote or Very Remote
  5. has daily fees less than $55 per day for any eligible funded child attending the service (aged 4 and above in the year before school; and 3 year old equity children)

Services receiving the Service Safety Net will not be required to follow fee pass through requirements for non-equity 3 year old children.

* A service may still qualify for the Service Safety Net if, over the last 3 years, it meets the minimum enrolment criteria.

Indexation

Decisions regarding the application of indexation under Start Strong are made annually by the department. If indexation is applied, the department will be guided by a NSW Treasury-mandated percentage applicable to all Government agencies.

Funding payments

Funding under Start Strong is paid quarterly in advance. Funding is based on information provided by services in the Annual Preschool Census. The Terms and Conditions of Funding must be accepted in ECCMS prior to receipt of funding. These Terms and Conditions set out annual accountability and compliance requirements. Service providers are required to certify that funds have been spent in accordance with the Funding Agreement of the Early Childhood Education Grants Program. Performance and financial acquittals may be done either on a calendar or financial year basis.

Start Strong funding will be paid on a quarterly basis. Payments are made in July, October, December and April.

Transferring service approval

If an Approved Provider is transferring a community preschool service to another approved provider, then the community preschool must do the following:

  • contact the department at the contact details below when the transfer has been initiated. The department will advise on the steps required to conclude the Approved Provider’s responsibilities under Start Strong for Community Preschools.
  • complete and return to the department all acquittal documentation for the transferring service for the period up to the date of transfer. This must be completed within 30 days of the transfer of the service, unless otherwise agreed with the department.
  • give written notice to the new Approved Provider of the amount of funds (1) expended and (2) unspent. The Approved Provider must also request that the new Approved Provider liaise with the department about this funding program.
  • transfer all unspent funds to the new Approved Provider within 30 days of the date that the service is transferred, provided the department has agreed to the transfer of funding.

Service ceasing to operate

If a service is to close/cease trading as a Community Preschool, prior to the date of closure, the Approved Provider must:

  • contact the department at the contact details below as soon as possible and prior to the surrender of service approval. The department will advise on the steps required to conclude the Approved Provider’s responsibilities under Start Strong for Community Preschools.
  • complete and return to the department all acquittal documentation for the closing service for the period up to the date of closure. This must be completed within 30 days of the closure of the service, unless otherwise agreed with the department.
  • return all unspent funds to the department by no later than 30 days of the date of the closure of the service.

Completing consent forms

Community preschools including mobile preschools need to complete 2 types of consent forms, one for each staff member and one for each child upon enrolment. This means on first enrolling. It is good practice to seek a renewal of the consent form every year a child attends. A new form should be completed if any of the details in the original consent form require update or adjustment.

Each form consents to the use and disclosure of personal information by the department to receive funding and other support to deliver an early childhood education program, and for the exercise of the department’s governmental functions. This may include monitoring the funding programs and reporting purposes

Data collected in the Annual Preschool Census is submitted to the Australian Bureau of Statistics for inclusion in the publication Preschool Education, Australia. De-identified data may be used for research and evaluation purposes.

Completing financial accountabilities

In accordance with the Terms and Conditions agreement, an Approved Provider must submit a statement of expenditure for each individual service which has received funding, to provide assurance that public funds have been expended for their intended purpose.

Financial accountability is completed through the Early Childhood Contract Management System (ECCMS). Visit our ECCMS page for more information.

Contact details

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

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