The new program will introduce a tiered funding model, with funding levels aligned to the level of inclusion support required by the child.

A number of the features of the 2026 High Learning Support Needs and Inclusive Environments Funding program arrangements will be retained. Applications will continue to be made for each child in the Early Childhood Contract Management System (ECCMS), and eligibility for funding will be determined using information about the child’s functional needs and the adjustments required to enable their meaningful participation in the preschool educational program. The reforms will also continue to provide capability building support for services and funding for specialised equipment where required.

The tiered approach recognises the range of children’s individual circumstances, and that children may require different adjustments to participate meaningfully in the preschool educational program. Funding amounts will be determined at assessment, using the assessment criteria. Funding arrangements for children will differ according to assessment and the supports required.

Providers should familiarise themselves with the new Inclusion Funding program guidelines and the Specialised Equipment Funding program guidelines, including the eligibility criteria, funding tiers and application requirements. Further resources will be available on the department’s website to support services through the transition to the new program.

Further information about eligibility, funding tiers, application requirements and assessment criteria is available in the Inclusion Funding program guidelines and the Specialised Equipment Funding program guidelines.

There is no impact to the funding already allocated to early learning services in 2026. Funding arrangements for the 2026 Disability and Inclusion program remain in place until 31 December 2026. New arrangements will commence for the 2027 calendar year.

Applications will continue to be submitted through ECCMS, with closing dates throughout the program year. New applications are required for all children, including children who received funding in 2026. Simplified applications are not available for 2027.

Further information about the application process, requirements and assessment points is available in the Inclusion Funding program guidelines and the Specialised Equipment Funding program guidelines.

In 2027, preschools must submit new applications for new and returning children. This is to ensure that all applications are assessed under the new program arrangements, including revised criteria. This is in line with the requirements set out in the NSW Grants Administration Guide. Simplified applications for returning children may be considered for future program years.

Applications for the 2027 program are expected to open on 2 November 2026. The program operates on a calendar year from 1 January to 31 December 2027.

Applications close at 5 pm on the following dates:

• Quarter 1 – by Friday 4 December 2026
• Quarter 2 – by Friday 9 April 2027
• Quarter 3 – by Friday 2 July 2027
• Quarter 4 – by Friday 17 September 2027
• Final Adjustments – by Friday 5 November 2027

Preschools can contact their Sector Capacity Building (SCB) provider for support submitting applications. SCB providers can assist with understanding the eligibility and funding tiers, preparing and reviewing applications, developing Individual Learning Plans and understanding how funding may best be used to support a child across their enrolment.

Preschools can also contact the department for support with the application process, including questions about the guidelines, application requirements, closing dates and use of ECCMS by either:

• Calling 1800 619 113; or
• Emailing ecec.funding@det.nsw.edu.au

The Inclusion Funding program provides funding as a contribution to the possible expenses associated with implementing adjustments to enable individual children to meaningfully participate in the preschool educational program.

Funding for eligible applications will be determined using the 2027 assessment criteria.

Where an application is assessed as eligible for Tier 3 funding, a rate of $28.88 (ex GST) per hour will be provided, up to a maximum of 750 hours per child per year. This is an increase from the 2026 High Learning Support Needs rate of $27.57 (ex GST) per hour, to a maximum of 600 hours.

Where an application is assessed as eligible for Tier 2 funding, a rate of $9.63 (ex GST) per hour will be provided, up to a maximum of 750 hours per child per year. A funding floor of $10,830.00 (ex GST) applies to Tier 2 funding.

Funding for eligible applications will be determined using the 2027 eligibility criteria, in line with the requirements set out in the NSW Grants Administration Guide. Quarter 1 Provisional Prepayments for eligible services may be considered for future program years.

The funding floor is a minimum funding allocation of $10,830 (ex GST). It is provided to preschools who meet the eligibility requirements for Tier 2 funding and whose total Tier 2 funding is less than the floor amount. Once the floor is reached, additional eligible Tier 2 hours are funded at the Tier 2 hourly rate.

Preschools do not need to apply for or make a separate request to be considered for the funding floor.

Funding can be used across two categories. Direct support, that is, additional staffing to increase the adult-to-child ratio during the child’s enrolled hours, and indirect support, that is, other activities associated with developing, delivering and reviewing the child’s Individual Learning Plan.

Preschools may choose to use all Tier 2 and Tier 3 funding flexibly across both categories, in a way that is responsive to the individual child or children and the preschool’s needs. This means preschools are not required to spend each child's allocation separately on individual children. Funding approved for more than one child may be used across those children, provided it is used in line with the spending rules and responds to the needs of the children it was approved for.

Funding cannot be used to offset existing staff costs, including staffing costs associated with meeting minimum educator to child ratios, or for general administrative costs that are not associated with directly supporting individual children.

Funding is available for specialised equipment or furniture for children who meet Tier 2 or Tier 3 eligibility requirements. That is, children who require at least frequent adjustments, across several functional domains in the preschool educational program. Applications must still be submitted and assessed against additional eligibility criteria in line with the Specialised Equipment Funding program guidelines.