Start Strong Explained: Extra Preschool Fee Relief for NSW Families
Updated: 6 days ago
If you're planning preschool for your three or four-year-old, you may have heard that Start Strong is changing. You're not imagining it.
From 1 January 2027, the NSW Government is replacing the Start Strong funding that has helped keep preschool fees down, and for families in long day care, the new program is called Fee Relief for Long Day Care.
The headline is encouraging: eligible families will receive up to $2,625 per child in 2027 as part of a $255 million NSW Government program, and fee relief for 3-year-olds continues. Here's how the new rates work, who is eligible, the dates that matter and what you can do now.
Start Strong preschool NSW is changing in 2027
Here's the timeline, as announced by the NSW Department of Education:
12 August 2026: the NSW Government announced the changes.
Through 2026: Start Strong continues as normal, with no change to 2026 funding.
1 January 2027: the new arrangements start. Fee Relief for Long Day Care replaces Start Strong for Long Day Care, and Universal Preschool Funding replaces Start Strong for Community Preschools.
Preschool fee relief NSW families receive will work the same basic way. The funding is paid to your centre and passed on to you as a reduction in your out-of-pocket fees. You don't receive a payment yourself.
Fee Relief for Long Day Care in 2027: Rates, Eligibility and Key Dates
The 2027 Fee Relief for Long Day Care program supports affordable access to quality early childhood education for children aged 3 and above in eligible NSW long day care services. It is designed around the two years before school, and it incentivises enrolments of 600 hours a year, because research shows that level of participation in a quality early childhood education program is associated with better outcomes for children. Funding is provided through two streams:
4YO+ Fee Relief Payment, for children who turn 4 on or before 31 July 2027 (and older children not yet at school)
3YO Fee Relief Trial Payment, for children who are 3, and not yet 4, on 31 July 2027
2027 fee relief rates
Fee relief is paid as an annual flat rate per enrolment, no matter how many hours your child attends each week. It's the same rate for not-for-profit and for-profit services.
2027 long day care | Maximum rate | All other children |
4YO+ Fee Relief Payment | up to $2,625 a year | up to $1,826 a year |
3YO Fee Relief Trial Payment | up to $788 a year | up to $434 a year |
Compared with 2026, every rate is a little higher. As in 2026, "up to" is the key phrase, because the amount that reaches your child depends on which rate applies to them.
Which children get the maximum rate?
The maximum rate applies to:
All Aboriginal and/or Torres Strait Islander children
All children attending a centre in an Inner Regional, Outer Regional, Remote or Very Remote area (ARIA+ 2021)
All children attending a centre in an area ranked in the two most disadvantaged deciles in NSW (SEIFA Decile 1 or 2, Index of Relative Socio-Economic Disadvantage 2021)
All children attending a service run by an Aboriginal Community Controlled Organisation
Every other eligible child receives the standard rate. The maximum rate is based on the child's background or the centre's location, not your family income, so your centre can tell you which rate applies to your child.
Is my child eligible?
For a child to attract either payment in 2027, they must be:
Within the age range. For the 4YO+ payment, born on or before 31 July 2023. For the 3YO trial payment, born between 1 August 2023 and 31 July 2024.
Attending an eligible preschool program developed and delivered by an early childhood teacher (ECT).
A confirmed enrolment in the Child Care Subsidy System (CCSS), meaning the family has confirmed the child's enrolment details with the centre.
Not yet in compulsory schooling, including homeschooling. See the NSW Department of Education Enrolment Policy for details.
A few details are worth knowing.
Fee relief applies from the date of your child's enrolment in 2027, and your centre doesn't have to wait for your child's birthday, as long as they turn 4 (or 3) by the 31 July cut-off. Children who are 6 years old are also eligible, and where required, a Certificate of Exemption from compulsory schooling must be in place. You don't need to be eligible for, or receiving, the Child Care Subsidy to qualify for fee relief.
If your child is enrolled at more than one centre
A child can receive Fee Relief from only one long day care service at a time, including when both services are run by the same provider.
Families complete a Fee Relief Declaration and Consent Form to nominate which service they'll receive it from, and an additional form for each other service stating they aren't claiming it there. It isn't permitted to claim fee relief from two or more services.
Where Start Strong funding stands in 2026
Through 2026, the current Start Strong rules still apply. In long day care, the amount depends on your child's age and whether they qualify for the "maximum" rate.
2026 long day care | Maximum rate | All other children |
Children aged 4 and above | up to $2,625 a year | up to $1,826 a year |
Children aged 3 | up to $788 a year | up to $434 a year |
In long day care, the 2026 maximum rate applies to Aboriginal and/or Torres Strait Islander children, and to children attending a centre in an area of greater socio-economic disadvantage, in a regional or remote area, or run by an Aboriginal Community Controlled Organisation. Because it's mostly based on the centre's location rather than your income, it's worth asking your centre which rate applies to your child.
To receive 2026 fee relief, your child needed to be enrolled at a participating service and at least 4 (or 3, but not yet 4) on or before 31 July 2026. You can only receive it from one service at a time, and in long day care there are no residency or visa requirements, and you don't need to receive CCS to qualify.
What to do now to prepare for 2027
Ask your centre which rate applies to your child (maximum or standard) for 2027.
Check your child's birthdate against the cut-off. For 2027, a child needs to be born on or before 31 July 2023 for the 4YO+ payment, or between 1 August 2023 and 31 July 2024 for the 3YO trial payment.
Complete the fee relief declaration and consent for. To have the fee relief applied to your enrolment, please complete a Fee Relief Declaration and Consent Form and nominate the service where you would like it applied. Our Family Relations team can provide you with the consent form to complete.
Enrolling for 2027? Ask us about your child's 2027 enrolment and rate. Our Family Relations team is happy to talk you through it, and you can find more on our Start Strong page.
Frequently asked questions
Is Start Strong ending in 2027?
For long day care, Start Strong is replaced by Fee Relief for Long Day Care from 1 January 2027. Funding for 2026 is unchanged.
How much preschool fee relief will NSW families get in 2027?
It depends on your child's age and which rate applies. For children aged 4 and above, fee relief is up to $2,625 a year at the maximum rate and up to $1,826 a year at the standard rate. For 3-year-olds, it's up to $788 or up to $434 a year. It's paid as a flat annual amount per enrolment, regardless of how many hours your child attends.
Will 3-year-olds still get fee relief in 2027?
Yes, through the 3YO Fee Relief Trial Payment. It's for children who are 3, and not yet 4, on 31 July 2027 (born between 1 August 2023 and 31 July 2024), and it's up to $788 a year at the maximum rate or up to $434 at the standard rate.
Do I need to apply to the NSW Government for fee relief?
The funding is paid directly to your centre, however you will need to complete a Fee Relief Declaration and Consent Form.
Can I get Start Strong funding and the Child Care Subsidy at the same time?
Yes. In 2026, CCS is applied first and Start Strong fee relief then reduces your remaining fees, without changing your CCS. In 2027, CCS continues as normal alongside the new fee relief, and you don't need to receive CCS to be eligible for fee relief.
Give your child a strong start
Choosing a preschool is about more than cost. It's about finding a place where your child feels safe, curious and ready for school. Explore our preschool program, read our guide to childcare vs preschool in NSW, and see our tips for settling in.
We'd love to show you around. Book a tour of your nearest Active Kids Group centre, or contact our friendly Family Relations team on 02 8362 3000 or enrolments@activekidsgroup.com.au. We're happy to talk you through fee relief and CCS for your family.
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