Grant Program Details

For more information about the EOI process, Pilot guidelines and funding, please contact ececd@det.nsw.edu.au.

1. Overview of grant program

​​The Preschool Reform Agreement (PRA) is a funding agreement between the Australian Government and States and Territories that supports the delivery of 600 hours of quality preschool for children in the year before school.

​The Preschool Outcomes Measure is a key reform under the PRA. The Preschool Outcomes Measure consists of 4 parts: national learning progressions, a national formative assessment tool (the National Tool), alignment criteria for states and territories that already use a formative assessment tool, and professional learning.

​The Preschool Outcomes Measure has been developed by the Australian Council of Educational Research (ACER) in partnership with Ninti One, an Indigenous owned professional services consulting organisation, and Goodstart Early Learning. The Preschool Outcomes Measure will support high-quality practice by equipping teachers and educators with access to an assessment tool to better understand and inform children’s learning in the year before school.

​The Preschool Outcomes Measure Pilot 2026/27 (the Pilot) is a federally funded initiative, to be delivered by the NSW Department of Education (the department) on behalf of the Australian Government, to pilot a prototype of the National Tool in early learning services between July 2026 and December 2027. ACER will use feedback from the earlier, related 2025 National Applied Trial (NAT) and this 2026/27 Pilot to inform the development and refinement of the National Tool.

​This grant is an opportunity for select teachers and educators to be part of the development of a formative assessment tool that meets the needs of all children in the year before school both in NSW and nationally. The department is committed to working in partnership with the early learning sector.

​As part of the PRA between the Australian Government, States and Territories, the National Tool will be used to explore children’s learning across two domains in this Pilot:

​1. oral language and literacy, and

​2. executive function.

​Find out more about the Preschool Outcomes Measure and the wider national trial (including the approach in other States and Territories) visit Australian Government Department of Education.

1.1 Purpose and objectives

​​This Pilot is a grants-based program administered by the department to early learning services.

​These Guidelines outline details of the Pilot’s targeted, competitive grant process, and will form part of the funding agreement with successful early learning services. If more expressions of interest or applications are received than available places, services will be prioritised based on the program’s overall assessment score, using the programs prioritisation methodology, while also ensuring geographic representation across NSW).
The Guidelines set out the objectives, service eligibility and assessment criteria, grant value, opening, closing and application outcome dates, support available to applicants, the decision-maker(s) and others’ roles in the grants process, reporting requirements and other details.

​The department is the source agency of the grant. The Guidelines may be amended or replaced by the department from time to time. Services must comply with the current version of the Guidelines, available on the departments Preschool Outcomes Measure website.

​Objectives

​The key objectives of the Pilot are to:

• ​Pilot the latest iterations of the National Tool, which includes adaptive functionality, an updated mix of tasks, learning progressions and support resources;

• ​Establish the reliability of the National Tool when used by teachers and educators instead of researchers; and

• ​Gather feedback from teachers and educators across diverse settings about the useability of the National Tool in practice. ​

1.2 Grant value

​​Detail:

• ​Total value of grant program $1,680,000

• ​Value of individual grants under the Pilot:
  • ​Stream One - Returning services (2026 for 18 months) $12,000 per
  • service​Stream Two - New participating services (2026 for 18 months) $14,000 per service
  • ​Stream Three - New participating services (2027 for 12 months) $10,000 per service.

• ​Service providers may be eligible to receive multiple payments in respect of its multiple participating early learning services. ​

This funding must be passed on in full by the service provider to the participating early learning service, for use by that service in compliance with these Guidelines.

2 Service selection criteria

2.1 Service selection criteria methodology

2.1.1 Overview

Services will be selected to participate in the program through a targeted process designed to ensure representation across priority cohorts, service types and geographic locations throughout NSW.

The selection methodology prioritises services located in communities experiencing higher levels of disadvantage and vulnerability, with consideration given to:

• lower socio-economic communities, using the Socio-Economic Indexes for Areas – Index of Relative Socio-Economic Disadvantage (SEIFA IRSD)

• communities with higher proportions of children from Language Backgrounds Other Than English (LBOTE)

• communities with higher Aboriginal and/or Torres Strait Islander populations

• locations with lower levels of child development outcomes, particularly in Language and Cognitive Skills (LANCOG)

• representation across metropolitan, regional, remote and very remote areas of NSW.

The program also seeks to ensure participation from a mix of:

• long day care and preschool/kindergarten services

• large, small and standalone providers

• Aboriginal Community Controlled Organisations (ACCOs).

2.1.2 New Participant Selection Methodology

Minimum Eligibility Requirements

To be considered for shortlisting, services must meet all of the following minimum requirements:

1. Be classified as either:
   1. long day care, or
   2. preschool/kindergarten.
2. Hold a current National Quality Standard (NQS) rating of, in respect of the relevant service:
   1. Meeting NQS,
   2. Exceeding NQS, or
   3. Excellent.
3. Achieve an overall assessment score greater than 2.5 based on the Pilot’s prioritisation methodology.

Methodology and prioritisation process

Eligible services will be prioritised using a methodology designed to support participation from priority cohorts and ensure geographic representation across NSW.

Services will be prioritised based on:

• geographic location, including representation from Major Cities, Inner Regional, Outer Regional, Remote and Very Remote areas
• provider type, including Large Providers, Small Providers and Standalone Providers
• community need and vulnerability indicators, including:
  • lower SEIFA IRSD rankings
  • higher Aboriginal and Torres Strait Islander populations
  • higher Language Backgrounds Other Than English (LBOTE) populations
  • lower Language and Cognitive Skills (LANCOG) development outcomes
• service quality ratings, with eligible services required to hold a rating of Meeting NQS, Exceeding NQS or Excellent.

To ensure balanced representation across NSW, services will be prioritised within geographic and provider-type groupings. Within each grouping, priority will be given to services with:

1. the highest overall assessment score, and

2. the lowest SEIFA IRSD ranking.

This methodology will support the selection of services that best align with the Pilot objectives while ensuring participation from a diverse range of communities, service types and provider sizes across NSW.

2.1.3 Existing Participant Methodology

To support sufficient program engagement, all existing participants (that is, existing participants under the National Applied Trial (NAT)) may be invited to express interest in continuing participation.

Where expressions of interest exceed available places, services will be prioritised using the same principles applied to new participant selection.

Prioritisation Process for Existing Participants

Where demand exceeds available places, priority will be given to services based on:

1. highest overall assessment score, and
2. lowest SEIFA IRSD ranking.

This approach ensures consistency with the methodology used for new participant selection and supports prioritisation of services located in communities experiencing greater levels of disadvantage and vulnerability.

2.2 Eligibility criteria

The following eligibility criteria must be met to participate in the Pilot:

• ​Early learning services must have entered into the Early Childhood Outcomes Programs - Funding Agreement – terms and conditions – 1 January 2026 to 31 December 2026 with the department. Services must enter into the equivalent for 2027.
• Early learning services must have a current quality rating against the National Quality Standard. Services rated Significant Improvement Required, Not Meeting National Quality Standard, or Not Yet Assessed are ineligible to participate.
• Early learning services must not have any unresolved or open compliance matters with the NSW Early Learning Commission.
• ​Early learning services must complete the department’s 2026/27 Preschool Outcomes Measure Pilot for NSW application form via SmartyGrants by 17 July 2026.
• If more Expressions of Interest are received than available places, early learning services will be prioritised based on the program’s overall assessment score using the programs prioritisation methodology, while also ensuring geographic representation across NSW.

​As part of the 2026/27 Pilot there must be a mix of returning services from the National Applied Trial (NAT) that participate in both Stream One of the 2026/27 Pilot (18 months) and Stream 2 of the 2027 Pilot (12 months).

​Support

​Support is available to assist services to submit agreement to the Early Childhood Outcomes Programs - Funding Agreement – Terms and Conditions – 1 January 2026 to 31 December 2026 if such an agreement is not already in place. Please contact the department for support by:

calling 1800 619 113 or,

emailing: ececd@det.nsw.edu.au

3 Application Process

3.1 Invitation Process

The department will invite early learning services that previously participated in or expressed interest in the National Applied Trial (NAT). In the initial round of communication to these services, an information sheet about the Pilot, including the benefits of participating, FAQs and how to apply, will be included.

An invitation to apply will be sent to all targeted early learning services from the 15 June 2026. Interested early learning services are required to complete and submit the department’s application form online via SmartyGrants.

Early learning services have until 11:59PM on 17 July 2026 to submit their application. Further details on the application process are outlined below.

3.1.1 Expressions of Interest

1. Register interest in participation of the 2026/27 Preschool Outcomes Measure Pilot by complete and return the department’s Application Form via SmartyGrants

Early learning services may register their interest in participating in the Pilot via SmartyGrants form.

The Expression of Interest process does not guarantee participation in the Pilot.

If a service is selected to participate, the designated contact person will be required to agree to the terms and conditions on behalf of their service.

3.1.2 Communications to Parents and Caregivers

Please note that as part of the registration process, there will be an ‘opt-out’ method of gaining parental consent. Following registration, early learning services need to disseminate information about the Pilot to parents and caregivers and ensure that children whose parents have opted out are not involved in the Pilot.

Parents can choose to ‘opt out’ their child. Should a child be ‘opted-out’, they will not be included in any Pilot activities or have any data collected as part of the Pilot.

3.1.3 Professional Development for Pilot Participants

Professional development before piloting the National Tool

Professional development and support for teachers, educators and leaders is an integral consideration in the development of a fit-for-purpose formative assessment tool for the early learning sector.

Prior to piloting the National Tool, all participating educators will complete, at minimum, the mandatory professional development delivered by the department and ACER. This professional development will ensure educators feel well prepared and supported, to facilitate the collection of reliable, consistent assessment data during the Pilot. A combination of live and self-paced professional learning opportunities will be available to participants to build familiarity and confidence with the National Tool and explore foundational and related content.

Mandatory professional development:

Face-to face and online workshops for teachers and educators prior to participation in the Pilot.

Completion of a professional development workshop is required before piloting the National Tool and will be delivered in multiple formats to suit different preferences:

• New participating services training - 2-day workshop for participants who are new to the Preschool Outcomes Measure Pilot (were not involved in the National Applied Trial (NAT))

OR

• Returning services - 1-day refresher workshop for those who participated in the 2025 National Applied Trial (NAT) - The refresher workshop will include the opportunity to share and hear key feedback from the National Applied Trial (NAT) and an introduction to new and refined features of the National Tool.

Optional ongoing professional development:

Access to a refined and expanded suite of self-paced online modules and support materials. Educators will also have access to an online Preschool Outcomes Measure digital portal to manage implementation processes and online professional learning materials. The purpose of the portal is to support educators to get the most out of their participation in the Pilot as they reflect on their current approaches to formative assessment and planning to support children’s learning, and to address the diversity of backgrounds, qualifications and experience levels among participants through differentiated follow up resources.

Through the portal, educators can engage with:

• information and resources relevant to the workshop content, for review or deeper engagement
• a series of short, optional, self-paced learning modules on topics relevant to understanding and supporting diverse children’s oral language and literacy and executive function.

Topics covered in the professional development workshops include:

• orientation to the National Tool
• alignment between the National Tool and the Early Years Learning Framework (EYLF), with a particular focus on the EYLF planning cycle and principles and practices of effective formative assessment
• the purpose and structure of the Preschool Outcomes Measure learning progressions, and navigating learning progressions in the Preschool Outcomes Measure platform
• definition and approach to (i) oral language and literacy and (ii) executive function within the National Tool
• ensuring inclusion in the Preschool Outcomes Measure Pilot for children with diverse accessibility requirements
• understanding formative assessment findings in relation to children’s current location along the learning progressions
• opportunities for practice and moderation (e.g. using a practice version of the Preschool Outcomes Measure formative assessment and videos of teachers and educators engaging children in assessment experiences).

Workshops will incorporate case study examples, video demonstrations, small-group discussion and reflection, and opportunities for practice.

3.1.4 Participation in the Pilot

To participate in the Pilot, leaders, educators and teachers are required to:

• become familiar with the support resources for the National Tool and refer to them as required
• use the National Tool with selected children who are in the year before school
  • Each early learning service must ensure that, where practicable, two representatives (educators and/or teachers) assess a minimum of 5 children each at the Term 3 -Term 4, 2026 assessment point. This is the expected minimum number of children to be assessed per assessor, subject to reasonable operational constraints, service size and number of children enrolled in their year before school.
  • In 2027 each early learning service must ensure that, where practicable, two representatives (educators and/or teachers) assess 10 children each at each assessment point. This is the expected minimum number of children to be assessed per assessor, subject to reasonable operational constraints, service size and number of children enrolled in their year before school.
  • Where capacity and resources allow, early learning services may assess additional children beyond this minimum requirement.
  • Administration of each assessment takes approximately 30 minutes, with the opportunity for overlap when students are assessed in groups.
  • The tool is flexible allowing teachers and educators to collect evidence at suitable times during a two-week assessment window. These tasks include observations, reflections and tablet related tasks
• consider any invitations to host department staff and ACER researchers on-site to observe use of the National Tool in practice and to speak with leaders, educators and teachers about their experience of the National Tool, and
• provide updated child enrolment data for 2027 in the MS Form, as requested by the department.

4 Assessment Process

4.1 Assessment of grant applications

​​The department will first assess applications and determine suitability to participate in the Pilot based on eligibility criteria outlined above (section 2.2).

​Only applications meeting that eligibility criteria will progress to assessment against the further assessment criteria below.

​The submission of an application does not guarantee participation in the Pilot.

​Eligible applications will then be considered against prioritisation criteria to support the selection of a diverse and representative cohort of services, consistent with the objectives of the Pilot and the participation requirements agreed with the Australian Government.

​In applying these criteria, the department may consider a balanced mix of service types, geographic locations and community contexts to support effective Pilot implementation.

​Prioritisation criteria

​Services that demonstrate one or more of the following characteristics may be prioritised for participation:

• number of currently enrolled children in the year before school
• high proportion of children in the year before school with a language background other than English
• high proportion of children in the year before school who are Aboriginal and/or Torres Strait Islander
• high proportion of children in the year before school with a disability or additional needs
• operate in a regional, rural and/or remote location or in a disadvantaged area (SA2) with a low SEIFA classification
• Where demand exceeds available places, priority will be given to services based on:
  • highest overall assessment score, and
  • ​lowest SEIFA IRSD ranking.

4.2 ​Decision making

• ​The person responsible for approving the Preschool Outcomes Measure Pilot is the Deputy Secretary, Early Childhood Outcomes, NSW Department of Education.
• The decision to approve or decline a grant will be made by the Director, Pedagogy & Practice, Early Childhood Outcomes, NSW Department of Education.
• Recommendations for decisions to approve or decline a grant will be made by Manager, Pedagogy & Practice, Early Childhood Outcomes, NSW Department of Education.
• The grant will be administered by the department.
• ​The grant must be administered in accordance with the NSW Grants Administration Guide.
• ​Any conflict of interest is required to be declared and managed in accordance with the department’s Code of Conduct, for department staff.
• All decisions in the recommendation and approval process must be documented. The Decision Maker’s decision to approve or decline a grant must be recorded in writing. All records must be managed in accordance with the requirements of the State Records Act 1998 (NSW).

4.3 Key Dates and Pilot Details

​As part of the 2026/27 Pilot there must be a mix of returning services from the National Applied Trial (NAT) that participate in both the 2026/27 Pilot (18 months) and the 2027 Pilot (12 months).

• Stream One (Returning services-18 months)
• Stream Two (New participating services-18 months)
• Stream Three (New participating services-12 months)

4.4 Notification of application outcome

Applicants will be advised, in writing, of the outcome of their application. Notification of outcome will be sent by email.

All Streams - 30 July 2026

Notification of application outcome dates may be subject to change.

4.4.1 Feedback on applications

​​We like to hear when things have gone well so we can continue to provide more positive experiences. Services can provide suggestions, concerns or feedback about this Pilot to the department, including complaints about the conduct of our staff, by following one of the steps below:

• Complete the department’s Complaint, compliment or suggestion form.
• Call: 1800 619 113.
• Email: ececd@det.nsw.edu.au.​

5. Successful grant applications

5.1 Grant payment

​​The department will process payments through the department’s Early Childhood Contract Management System (ECCMS), for community preschools and long day care (LDC) services during the 2026/27 calendar years.

​Funding of up to a maximum of $14,000 (excl. GST) is available per service and must be spent by 30 November 2027 for all services.

​Each community preschool and long day care service must demonstrate continued engagement in the Pilot and feedback activities, as outlined in the applicable terms and conditions (in ECCMS), to receive all funding.

​An early learning service must return unspent funds if their participation in the Pilot is terminated.

5.1.1 Processing Payments

​Service providers that have been notified that their application is successful will be required to accept the Early Childhood Outcomes Programs – Funding Agreement - Terms and Conditions – 1 January 2026 to 31 December 2026 in ECCMS, if they have not already (and the equivalent for 2027). The 2026 version will apply in respect of the 2026 calendar year, and the 2027 version will apply in respect of the 2027 calendar year.

​For the avoidance of doubt, those terms and conditions for the respective years together with these Guidelines and other associated documents will form the Funding Agreement for early learning services receiving a grant payment under the Pilot.

​Services should ensure that their ECCMS SP-Admin account holder can log into ECCMS successfully using their myID.

​Services are required to review the following pages in ECCMS:

• Main Service Provider page – ensure that service details and contacts are up to date on the Main Details, Contacts and Address tabs; and
• Each Funding Specification page – ensure that details and contacts are updated on the Main Details, Contacts and Address tabs.

​If services are not registered in ECCMS, they are advised to contact the department for more information as soon as possible. The department will provide information and guidance supporting services to register.

5.2 Spending Rules

5.2.1 Eligible Spending

Participating early learning services must use grant funding (up to $14,000 (ex GST)) only for costs of participation in the Pilot and related feedback activities. These costs could include, but are not limited to:

• tools or technology to support attending webinars and completing professional learning and training including internet access, tablets or other electronic devices
• educational resources to support educators and teachers administering the National Tool
• backfill to relieve teachers and educators who are participating in professional development
• salary and wages for educators and teachers participating in the Pilot
• tools and technology to support engaging in feedback surveys, interviews and other related activities.

5.2.2 Unspent funds

​​Funding recipients are required to spend the allocated funding within the approved funding period outlined in their Funding Agreement/s.

​A provider must return any unspent funds if their participation in the pilot is terminated for any reason.

​If there are unspent funds at the end of the approved funding period, the department may require the recipient to return any unspent funds. The unspent funds must be reported by service providers and reviewed in a yearly acquittal process. ​

5.2.3 Funded activity

Funding recipients must carry out the activity requirements in these Guidelines, including complying with section 3.1.4.

5.2.4 Help desk

The ACER Preschool Support Team will provide an online searchable Helpdesk site with a user guide, articles and responses to frequently asked questions (FAQs). It will be available via phone and email from 8:30am to 5pm, Monday to Friday. ACER will also provide a searchable online Helpdesk with articles, user guide materials and video demonstrations.

5.3 Indicative reporting and acquittal requirements

​​​​Services must submit a financial accountability statement in accordance with the applicable terms and conditions. This statement provides assurance that public funds have been expended for their intended purpose and includes reporting of any unspent funds. 

​​Financial accountability statements are completed through ECCMS. The department will advise providers of due dates and the submission process through ECCMS prior to release. 

​​Following review of the financial accountability statement, the department may require the return of unspent funds in accordance with program requirements. 

​​Further information is available in the Financial Accountability Return Guide and on the Financial Accountability - Information for Services  page.​ ​

5.4 Evaluation

​​Contracted early learning services are required to participate in the evaluation of the Preschool Outcomes Measures Pilot by collecting and providing requested data and participating in evaluation activities. Findings from the evaluation may be used to inform future programs.

​Contracted early learning services may be required to obtain consent from participating families to share relevant data with the department and/or program evaluation team. If necessary, services will be provided with appropriate consent forms and disclosure information. Contracted early learning services must ensure consent forms are completed prior to collecting and recording personal information.

​Further detail about the Preschool Outcomes Measure Pilot monitoring and evaluation activities, including requirements to obtain consent, may be included in individual funding agreements.

6 Additional information and resources

6.1 Ethical conduct

6.1.1 Conflict of interest management

​​Recipient early learning services are required to disclose any actual, potential, or perceived conflicts of interest in their application which relate to their proposed initiative. A conflict of interest, if it arises, must also be disclosed by a contracted provider during the implementation of their initiative. Conflicts of interest may relate to partnerships, third party service provisions, contractors, staff employed as a direct result of the funded program or other aspects. Further detail about how to disclose a conflict of interest can be provided on request.

​The recipient must comply with the department’s reasonable requirements in respect of managing any conflict of interest. ​

6.1.2 Confidentiality

​​Reporting and data collection ensures Preschool Outcomes Measure funds are used to deliver the program’s activities and allows measuring if the program is achieving its intended outcomes. It will not be used to compare or rank services, teachers, educators or children.

​Any personal information will be held and managed by the department in accordance with the Privacy and Personal Information Protection Act 1988 (NSW). Services may be required to obtain consent from participating families to collect and use personal information. A Human Research Ethics Committee has reviewed and approved the protocol for the Preschool Outcomes Measure Pilot 2026/27 (ref. approval number HREC-0363).

​The Government Information (Public Access) Act 2009 (NSW) GIPA Act provides for the proactive release of certain grants information and gives members of the public an enforceable right to access certain grants information held by an agency (which includes the NSW Department of Education and the Australian Government). Access to government information is only to be restricted if there is an overriding public interest against disclosure.

​The NSW Legislative Council has the power to order the production of State papers by the Executive Government. Standing Order 52 provides that the House may order documents to be tabled by the Government in the House. The Cabinet Office coordinates the preparation of the papers – that is, the return to order. The return to order may contain privileged and public documents. Privileged documents are available only to members of the Legislative Council.

​Due to the above, certain documents submitted as part of a grant application may be subject to an application under the GIPA Act or an order for papers under Standing Order 52.

​6.2 Publication of grants information

​The Grants Administration Guide (Guide) requires that certain information is published in relation to grants awarded no later than 45 calendar days after the grant agreement takes effect (see section 6.5 of the Guide and Appendix A to the Guide). This information is also open access information under the Government Information (Public Access) Act 2009 (NSW) (GIPA Act), which must be made publicly available unless there is an overriding public interest against disclosure of the information.

​In accordance with these requirements, relevant information about the grants awarded will be made available on the NSW Government Grants and Funding Finder as soon as possible after the grant funding is approved or declined.

​All records in relation to this decision will be managed in accordance with the requirements of the State Records Act 1998 (NSW).​