The Australian government is investing USD 0.7 billion (AUD 1 billion). It’s to create or expand Early Childhood Education & Care (ECEC) services in areas of Australian need. This’s an important step in the path to a universal ECEC system.
How it works
The Building Early Education Fund (Building Fund) provides capital funding for building new facilities besides expanding existing ECEC services. This programme includes the outer suburbs besides regional Australia.
The fund may give more families access to quality ECEC where it’s needed most.
The Australian Government may invest USD 0.7 (AUD 1) billion in the building fund. That may include:
- USD 350 (AUD 500) million in funding to build & expand ECEC services
- USD 350(AUD 500) million for the Australian Government to create and own, besides leasing ECEC services
Opportunities in Funding
The Building Fund includes USD 350 (AUD 500) million to build or expand ECEC services. You can target this funding to areas of greatest need. It may roll out across several priority streams.
Co-located services
Capital funding may be provided to the states, besides territories, to build or expand ECEC services on, or near, school sites.
Funding is provided through the Federation Funding Agreement (FFA) schedules. The below-mentioned jurisdictions have signed the agreement:
o Australian Capital Territory
o New South Wales
o Queensland
o South Australia
o Tasmania
o Victoria
Grants for sectors
Grants may be available to create or expand new ECEC services in areas of need.
A large-scale grant round closed on Tuesday, 17 March ’26, providing capital funding for large not-for-profit providers to build or expand ECEC services in areas of need.
All applicants may be notified of the outcomes of the large-scale grant round shortly.
A small-scale grant package is available for small, non-profit providers, besides Aboriginal community-controlled organisations. The purpose is to create or expand ECEC services in areas of need. It includes three grant opportunities.
Small-scale grant opportunities
IDAC’s co-investment in integrated services
Up to USD 35 (AUD 50) million from the Building Fund is being used for co-investment in integrated services with the Investment Dialogue for Australia’s Children (IDAC). The projects are expected to bring together:
- Early learning
- Child & maternal health services
- Family & community support
IDAC is a 10-year collaboration between the government and philanthropic organisations. This is to improve the health and well-being of children and young people as well as their families. Philanthropic partners of IDAC have also committed in-principle funding up to USD 35 (AUD 50) million to establish these services, besides initiatives that strengthen a holistic early childhood development system.
Under the co-investment with IDAC, projects may be assessed against criteria such as the following:
Ø Early childhood vulnerability
Ø ECEC supply
Ø Land availability
Ø Preparedness to deliver
Leasing & owning
When exploring ways to increase the supply of ECEC services, the government may consider various options. One option may be for the government to create and own, besides leasing, ECEC services.
Following completion & consideration of an initial business case, the government may undertake a detailed business case to inform future decisions.
The government has set aside USD 350 (AUD 500) million for future investment in ownership besides leading ECEC services.
Building locations
The Building Fund may focus on regions across Australia that require ECECs the most. The target areas may include regions with a shortage of early childhood education and care services in their outer suburbs, as well as areas experiencing higher levels of vulnerability in addition to disadvantage.
To determine priority areas, they will:
ü Analyse a range of sources. This includes data on supply and need besides disadvantage.
ü Work with state and territory, besides local governments as well as peak bodies.
ü Consult communities
Building when
v The Building Fund’s early focus may be on:
- Creating ECEC services on or near school sites. This includes election commitments.
- Delivering, in a timely manner, new ECEC to communities most in need
