Draft policy and funding guide

Funding for teaching and learning

Teaching and learning funding is the base per-capita funding for the preschool program. It supports the delivery of a teacher-led program:

  • to enable services to uplift an existing program to be a preschool program led by an early childhood teacher
  • by allowing an additional 2 hours of non-contact time per week
  • by providing an additional 2 days of professional development per year, both above the current relevant industrial award and any future negotiated changes to awards.​

The maximum per-capita funding for teaching and learning will be based on enrolments at 15 hours per enrolment per week, for maximum 600 hours over 12 months for a child enrolled in 3-year-old preschool program, plus a 4-year-old preschool program.

Note: Public holidays are included in the annual provision of 600 hours.

Flexible hours – 3-year-old preschool

By 2032, all children will be entitled to 15 hours, but during roll-out – while building up workforce and infrastructure capacity – services may offer between 6 and 15 hours per enrolment per week to maximise the number of children able to receive a 3-year-old preschool program.

Where there is greater demand than capacity in a partner service, they must prioritise the participation of children in a funded preschool program over the number of weekly program hours.

Each eligible child can be enrolled for funded preschool program between 6 to 15 hours per week. The partner service will be funded pro-rata on that basis – per funded preschool program enrolment, for each child the:

  • minimum hours per week is 6 hours
  • maximum hours per week is 15 hours
  • maximum hours offered per day is 8 hours
  • maximum number of weeks of attendance is 48 weeks per year
  • maximum number of hours for universal 3- and 4-year-old preschool program is 600 hours.

Partner services may be funded in the following pro-rata increments, per child, per week. If a service is offering different hours, they should round down to the lower of the 2 points – such as, 8.5 hours to 8 hours, 11 hours to 10 hours.

  • 6 hours
  • 7.5 hours
  • 8 hours
  • 10 hours
  • 12 hours
  • 12.5 hours
  • 15 hours.

Displaying preschool program information

At all times, partner services must:

  • display the preschool program operating days and times
  • the name and qualifications of the early childhood teacher or other qualified position delivering the program.

This information must also be provided to the OECD, to support service monitoring and compliance.

Activities that can and cannot be included as part of program hours

ActivityApplicability
When the early childhood teacher is working directly with the children and delivering the programYes
When the service is using the ‘under the roofline’ ratio provisions and the early childhood teacher is in another area of the service and not delivering the programNo
Standard meal breaks as required by industrial instrumentsYes

Spending rules

Teaching and learning funding must be spent in accordance with the purposes explained here. It cannot be used for other purposes, unless authorised in writing by the OECD.

For sessional preschool partner services, teaching and learning funding (along with parent fees) can be applied to the costs of providing a funded 3-year-old and/or 4-year-old preschool program at the service. This can cover wages and conditions of the early childhood teacher and VET-qualified program staff.

For long day care partner services, teaching and learning funding can only be applied to the marginal costs of teaching and learning in the funded preschool programs. This funding cannot be used for the costs of other rooms or the underlying costs of operating a national law-compliant long day care service. (It is assumed these costs are covered by Australian Government funding and parent fees.) For example, funding must only be spent on the additional costs of delivering a quality preschool program above and beyond a long day care program. Costs may include:

  • the differential between wages and conditions of an early childhood teacher-led room and a program led by a diploma-qualified staff member
  • for early childhood teachers delivering the funded preschool program, the provision of an additional 2 hours of non-contact time per week above and beyond the relevant industrial award, plus 2 working days off the floor per year. This includes costs for backfilling of staff.
  • teaching and learning professional development programs plus release time for early childhood teachers and VET-qualified staff working in the funded preschool program. This supports quality programming, including a focus on preventing and responding to developmental vulnerability
  • improved wages and conditions for early childhood teachers and/or VET-qualified staff working in the funded preschool program. This includes attraction and/or retention payments necessary to establish and maintain the program
  • support such as release time for staff who are upskilling to their next level of qualification in order to take on a higher-level role in the funded preschool program
  • additional enrichment experiences such as incursions and excursions, for funded preschool children to support preschool program delivery.

Funding can only be allocated and used at a service level, unless authorised in writing by the OECD.

The OECD will consult on appropriate arrangements for long day care services that, at the time of becoming a partner service, already wholly or partly meet the teaching and learning requirements of the funded preschool program.

In these cases, funding uses could include:

  • additional workforce development
  • quality or capability building in staff
  • equity and inclusion activity that benefits the service and its families as well as the broader local community, particular cohorts, or the early childhood system as a whole.

Financial obligations

Each partner service must be able to demonstrate to the OECD that:

  • the funding has been spent has been spent in accordance with the spending rules
  • they have retained evidence to demonstrate compliance with funding rules, which may include:
    • enrolment policies and procedures, enrolment forms
    • fee structure for the service/s
    • family fee statements
    • financial reports, receipts, invoices, bank account statements
    • payslips or employment contracts .