1 Overview of grant/grants program

1.1 Purpose and objectives

These funding program guidelines (guidelines) provide an overview of the 2027 Inclusion Funding Program. The Inclusion Funding Program provides funding and support to enable children with inclusion support needs attending not-for-profit preschools (operating as community preschools) and mobile preschools (preschools) to participate meaningfully in the preschool educational program.

This is a demand-driven program that provides funding under a tiered system. Tier 1, or universal funding, is delivered through the Universal Preschool Funding program or the Mobile Preschool Funding program. 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 is provided to preschools to develop and deliver each child’s individual learning plan (ILP). The ILP supports the child’s specific learning requirements to enable meaningful participation.

This document forms part of the 2027 Funding Agreement with Approved Funded Providers (providers) that is entered into with the NSW Department of Education (department). These guidelines may be amended or replaced by the department from time to time. Providers must comply with the current version of the guidelines.

The source agency for the funding is the department.

This program aims to:

• support equitable education outcomes for children with inclusion support needs during their attendance at preschool and as they transition to school
• target funding and support based on the adjustments required to enable the child’s participation in the preschool educational program
• increase the early learning sector’s capability to uphold every child’s right to access, participate and be meaningfully included in early learning, regardless of background, abilities and preferences
• align with the National Disability Insurance Scheme (NDIS) and the Thriving Kids program, whereby the NDIS and Thriving Kids provide disability supports, and this program provides educational supports.

Thriving Kids is a new program for children aged 8 and under with developmental delay and/or autism who have low to moderate support needs, and for their families, carers and kin.

Thriving Kids is led by the Department of Communities and Justice (DCJ), and you can find out more information here: Thriving Kids | Communities and Justice.

Thriving Kids is being progressively rolled out from October 2026. These program guidelines will be updated in relation to provision of documentation relating the Thriving Kids program eligibility as the Thriving Kids program develops and further information about services and access pathways are confirmed.

It is the department's expectation that services will comply with their obligations under the Children (Education and Care Services) National Law (NSW) and Education and Care Services National Regulations (NSW). If there is a conflict between the interests of the service and the rights and best interests of a child or children to whom the service provides education and care, the department expects that the service will ensure the rights and best interests of the child or children prevail.

Research and data show:

• 7.2% of children attending NSW community preschools in 2022 were children with disability or additional needs. [Review of early childhood education and care, 2023] https://aifs.gov.au/resources/short-articles/supporting-disability-inclusion-children-and-families
• Supports to provide adjustments and strengthen inclusive practice can improve children’s learning, development, wellbeing, belonging and participation, particularly for children who may be experiencing additional barriers to inclusion. (Australian Institute of Family Studies 2025; Productivity Commission 2024; Disability Royal Commission 2023)
• all children benefit from inclusive settings in the short and long term. [Supporting disability inclusion with children and families, 2025].

1.2 Grant value

The total grant value is approximately $81 to $91 million (ex GST).

2 Eligibility criteria

The eligibility criteria for funding may be categorised into two components: service eligibility criteria, and child eligibility criteria. Both must be satisfied in all cases, to be eligible for funding.

The child eligibility criteria and assessment criteria are used to determine the level of inclusion support required and whether Tier 2 or Tier 3 funding applies.

2.1 Service Eligibility criteria

Funding is only available for operational preschools who have been approved for funding under the Universal Preschool Funding program or the Mobile Preschool Funding program.

Preschools may submit applications once they have been approved for funding under the Universal Preschool Funding program or the Mobile Preschool Funding program.

The department will not provide funding for places or hours in a service that are Child Care Subsidy approved. Inclusion funding and support for children in places or hours that are Child Care Subsidy approved may be available from the Australian Government’s Inclusion Support Program.

If a child attends multiple preschools, each provider or preschool may apply for funding.

The department reserves the right to pause or cease funding under this program to any preschool if the eligibility criteria is no longer met. This includes if/when the preschool’s Universal Preschool Funding or Mobile Preschool Funding has been paused or ceased.

2.2 Child Eligibility criteria

In addition, to be considered for this funding, the child must:

• meet the age requirements, that is:
  • be at least 3 years old on or before 31 July in that preschool year and not in compulsory schooling, including homeschooling (see the NSW Education Enrolment Policy for further information about school enrolment); or
  • Under limited and exceptional circumstances, turn 3 years old after 31 July in that preschool year. Exceptional circumstances are like or related to the following circumstances for the child younger than 3 enrolled in the preschool: trauma, child protection concerns, cultural considerations, as well as cultural safety, and individual or family needs and circumstances; and
    
    
• the child must:
  • have inclusion support needs requiring at least frequent individual support across some functional domains; and
  • require an individual learning plan (ILP) that identifies individual goals and the specific teaching strategies and adjustments; and
  • require adjustments and support additional to the support all children receive or would be provided under the Universal Preschool Funding program (Tier 1 universal inclusion supports).

The department does not take citizenship and residency status into consideration to determine eligibility of children for funding under the Inclusion Funding Program.

3 Funding

There are two tiers of funding available under the Inclusion Funding Program: Tier 2 and Tier 3.

Providers may access Tier 1 funding (under the Universal Preschool Funding program or the Mobile Preschool Funding program) and, either Tier 2 or Tier 3 funding for the same child at each preschool the child attends.

Eligibility for funding (including funding amounts) will be determined at assessment, using the assessment criteria. See Section 6 Assessment criteria and feedback for more information. The department will assess each application against the eligibility and assessment criteria and/or on a case-by-case basis.

Funding may be granted on an annual or quarterly basis.

Funding amounts are determined by the child’s functional needs and the adjustments required to enable their meaningful participation, as detailed in the application. Funding for eligible applications is provided to support the child’s participation across all enrolled days, up to a maximum of 750 hours per child per year.

3.1 ​Tier 2 funding

• Tier 2 funding will be provided at an hourly rate of $9.63 (ex GST) for up to a maximum of 750 hours per child per year.
• A funding floor (minimum funding allocation) of $10,830.00 (ex GST) will be provided to preschools who meet eligibility requirements for Tier 2 funding and whose total Tier 2 funding is less than the floor amount (that is, $10,830.00 ex GST).
• ​The hours of funding for direct support (additional staffing to increase the adult-to-child ratio) must not exceed the child’s enrolled hours.
• Preschools may request up to 20 additional hours of indirect support per application, above their requested direct support hours (which must not exceed the child’s enrolled hours). Indirect support refers to activities associated with development, delivery and review of the child’s ILP, such as professional development, family check-ins and consultations with health professionals.
• The total hours of funding requested must not exceed 750 hours.

3.2 Tier 3 funding

• Tier 3 funding will be provided at an hourly rate of $28.88 (ex GST) for up to a maximum of 750 hours per child per year.
• ​The hours of funding for direct support must not exceed the child’s enrolled hours.
• ​Preschools may request up to 20 additional hours of indirect support per application, above their requested direct support hours (which must not exceed the child’s enrolled hours).
• ​The total hours of funding requested must not exceed 750 hours.

​3.3 Indexation

​The department reviews funding rate indexation annually. If indexation is applied, the department will be guided by NSW Treasury-determined rates. Any changes or indexation-related rate updates will be communicated to providers via email.​

4 Application process

4.1 How to apply

• All applications and variations to applications are made on a per child basis in the Early Childhood Contract Management System (ECCMS).
• Applications and variations to applications can only be made by staff members of the preschool or the provider.
• The department encourages preschools to regularly review the details of their primary and alternate contacts listed in ECCMS.
• Preschools are required to complete a detailed application which demonstrates how the eligibility and assessment criteria are met. All sections must be completed, and the application form submitted to be considered for funding. Complete applications that have been submitted will be marked as ’Submitted’ in ECCMS.
• Applications must only be made for the hours of support that the preschool can spend in accordance with the program spending rules in Section 7.
• Funding for eligible applications is provided at a maximum of up to 750 hours per child per year, and
  • The hours of funding for direct support (additional staffing to increase the adult-to-child ratio) must not exceed the child’s enrolled hours
  • Preschools may request up to 20 additional hours of indirect support per application, above their requested direct staffing hours. Indirect support refers to activities associated with development, delivery and review of the child’s ILP, such as professional development, family check-ins and consultations with health professionals
• Information provided as part of funding applications may be used by the department for the purpose of assessing eligibility of a preschool and/or child for future funding for similar programs in subsequent years.
• See Section 4.9 Support available to applicants for information about how the Sector Capacity Building (SCB) providers can help preschool staff apply for the Inclusion Funding Program.
• Applications should only be made when the preschool has an understanding of:
  • the child’s learning, development and wellbeing; and
  • the adjustments required to support the child to meaningfully participate in the preschool educational program.
• Funding for eligible applications is provided to support the child’s participation across all enrolled days, up to a maximum of 750 hours per child per year.

4.2 Consent forms

Providers are required to collect completed consent forms from each staff member at the commencement of employment, and for each child upon commencement of enrolment.

A child and staff consent form completed for the Universal Preschool Funding program and/or the Mobile Preschool Funding program covers all grants under the Inclusion Funding Program - no extra forms are needed.

Providers must arrange for parents and carers and staff to complete the consent form each year, as consent forms may be updated on a yearly basis. Providers should also have families complete a new form if any of the details in the original consent form require an update or adjustment.

Each form consents to the use and disclosure of personal information and health information by the department to allow funding and other support to be provided for delivering an early childhood education program, and for the exercise of the department’s governmental functions. Those functions include monitoring funding programs and reporting purposes.

Consent forms are available for download:

• Consent Form – Child (PDF 281 KB)
• Consent Form – Personnel (PDF 275 KB)

4.3 Application requirements

All applications require:

• At least one of the following (as per section 4.4):
  • a written diagnosis
  • an NDIS plan (approved and current)
  • preschool observations
• details of the child’s participation, strengths and individual learning capabilities across functional domains; and
• details of current and proposed adjustments, such as teaching strategies, educator guidance or environmental modifications that support the child’s meaningful participation in the preschool educational program across functional domains; and
• confirmation of the number of weeks and days/hours per week the child is enrolled to attend, excluding school holiday closures.

4.3.1 Functional domains

Functional domains look at how a child interacts with, learns in, and navigates their preschool educational program, prioritising their practical participation over a formal diagnosis.

All funding applications must consider the following functional domains:

• Social and emotional participation: Describes the child’s engagement within preschool routines and activities, peer and educator relationships, emotional regulation, and adaptability to change, excitement, or challenge.
• Communication and interaction: Describes how the child understands and expresses wants, needs, ideas and feelings using all forms of communication, spoken and non-spoken.
• Thinking and learning: Describes how the child focuses on, attends to and completes an experience, recalls and follows familiar routines, understands and applies simple concepts, and the time and supports required to participate in familiar learning experiences.
• Movement: Describes how the child moves within the preschool educational program, manages spatial awareness and physically transitions between spaces, and use of specialised equipment for mobility or participation.
• Personal care, health and safety: Describes how the child eats and drinks, toilets, dresses, manages health care needs, and understands and responds to risk and safety in various environments.

4.4 Types of evidence / applications

There are three types of evidence that can be provided in support of an application:

• preschool observations
• written diagnosis
• NDIS plan (approved and current)

One type of evidence is the minimum requirement to support an application.

Preschools may choose to upload more than one type of evidence to support an application. The department refers to three ‘types of applications’ which correspond to these three types of evidence.

4.4.1 Preschool observations

In circumstances where a child has been identified by the preschool as having inclusion support needs, and a written diagnosis or approved and current NDIS plan is not available or in place, preschools may submit an application supported by preschool observations.

Observations must demonstrate that a child has high inclusion support needs and demonstrate the frequency, intensity and duration of the concerns across the preschool program. Observations should be taken over the course of at least a week and must be as recent as possible.

Observations are not personal opinions but rather provide data about the child’s functioning in the preschool educational program. Observations must be recorded by educators at the preschool and must be dated.

Observations can be recorded as:

• running records
• time samples
• frequency tally
• scatter plots
• anecdotal observations
• Antecedents, Behaviour, Consequences (ABC) recordings
• language samples
• learning stories or narratives of key events.

The dated observations must be a description of what is observed, and must not contain personal opinions, developmental summary statements, analyses or evaluations of observations.

Additionally, preschools must confirm in the application form that the information recorded in observation/s are accurate and true. Observations that contain false or misleading information may be subject to further review or be assessed as ineligible. If a preschool knowingly provides false or misleading information, funding under this program and other preschool support programs may also be at risk. See Section 10.5 for more information.

The department has developed a series of optional templates to assist preschools to document observations. The templates have been adapted from a webinar delivered by STaR which was funded through the department’s Sector Development Program, now known as the Safety and Quality Practice Program. Preschools may wish to use the templates to support an Inclusion Funding Program application. Use of the templates does not determine the application outcome nor eligibility for funding. Access the templates and webinar for preschool observations.

The documents listed below are not sufficient on their own to confirm eligibility:

• letters of support for funding from professionals, including therapists and or other professionals (such as Sector Capacity Building providers)
• professional reports indicating concerns and the requirement for further investigation
• screeners such as Ages and Stages questionnaires, the NSW Government Health and Development checks
• developmental summaries or developmental milestone checks written by preschool educators
• Individual Behaviour Plans or ILPs.

However, these documents can be provided as additional supporting evidence, if available.

4.4.2 Written diagnosis

Documentation must:

• confirm diagnosis of disability; and
• be issued directly by the diagnosing specialist and/or health professional who made the diagnosis, rather than a practitioner referencing another professional’s findings; and
• be provided on their letterhead or on an electronic record with a valid digital signature; and
• be accurate, relevant, and as recent as possible.

Specialists may include an audiologist, registered psychologist, paediatrician, psychiatrist, speech pathologist, occupational therapist, a professional qualified to administer psychometric assessments or other relevant medical specialist.

Where a document refers to a speech and language delay/disorder only, a moderate to severe diagnosis must be demonstrated and made by a speech pathologist.

4.4.3 NDIS plan (approved and current)

An approved and current NDIS plan for a child must be uploaded. The full NDIS plan does not need to be provided.

The uploaded NDIS plan must at least include the following parts:

• the child’s full name; and
• the plan approval date, and/or the plan start date, which confirms currency of the plan at time of the application.

Documentation issued by the National Disability Insurance Agency that relates to NDIS but is not an approved and current NDIS plan (such as documentation confirming access request or an Early Supports plan) will not be considered.

4.5 Annual vs quarterly funding

Applications can be assessed as eligible for funding on either an annual or a quarterly basis. Eligible applications will attract annual funding, except where the department determines that adjustments may only be required for the child on a temporary basis (for any period less than the number of weeks and/or hours the child is enrolled to attend).

Applications that include observations taken by preschool educators indicating that frequent and additional support above what is required for all children or substantial, constant and sustained adjustments are required, but do not provide sufficient evidence to support annual funding, may be considered for one quarter of funding.

Preschools eligible for quarterly funded applications must submit a variation to be considered for additional quarters of funding.

Applications may be assessed as eligible for quarterly funding if it is deemed:

• the child’s inclusion support needs are on a temporary basis; or
• the child is newly enrolled, and the application includes observations taken by preschool educators that strongly indicate at least regular or frequent adjustments are required, but do not provide sufficient evidence for annual funding.

4.6 Variations – including extended absence, child has left, increase or decrease in hours, Tier 2 or Tier 3 review

Changes to a child’s circumstances as the year progresses must be indicated through an application for variation as a requirement under this program. Variations can only be made to eligible applications in ECCMS.

To complete a variation, preschools can select the pencil icon next to the child’s name in the list of child applications in ECCMS, select the reason for the variation and follow the prompts.

Preschools must select the reason for variation that best suits the child’s change in circumstances. Where a child’s circumstances have changed in several ways, more than one variation should be submitted

Variations must be made as soon as practicable when:

• the child leaves the preschool
• the adjustments required to enable the child’s meaningful participation change, and the preschool would like to request an increase in funded hours, or a decrease in funded hours (including reducing funded hours to zero where the child no longer requires funding)
• the child has returned from an absence of more than 5 weeks.

Where a child has been assessed as eligible for Tier 2 funding, a preschool may request a variation to Tier 3 funding where there has been a significant change in the adjustments required to enable the child’s participation, since the original application was submitted.

A variation to Tier 3 must be supported by new evidence demonstrating the change in circumstances or support needs.

A request for variation to Tier 3 must demonstrate:

• that the child’s circumstances or inclusion support needs have changed since the original application was assessed
• that the change has resulted in a significantly increased level of adjustments, or support required for the child, and
• how the child requires substantial and constant individual support sustained across most or all functional domains, and adjustments that are planned and reviewed through an individual learning plan that may be informed by specialist input (See Section 6.2.2 for Tier 3 assessment criteria).

Where a child has been assessed as eligible for Tier 3 funding, a preschool may request a variation to Tier 2 funding where there has been a change in the adjustments required to enable the child’s participation, since the original application was submitted. The request must include updated information demonstrating the change in the child’s circumstances or support needs. The revised level of support must align with the Tier 2 eligibility criteria.

Variations may result in a change in the preschool’s funding allocation throughout the year and a funding adjustment in the preschool’s next payment.

4.7 Exemptions from compulsory schooling

The Education Act 1990 mandates that all children must be in compulsory schooling by 6 years of age.

Exemptions from compulsory schooling are required where eligible children have reached compulsory school age. These exemptions are arranged between parents/carers and schools. It is no longer a requirement for preschools to submit school exemption documentation to be considered eligible for funding. Preschools must obtain (from parents/carers) and retain Certificates of Exemption for record-keeping purposes.

Information about transition to school for children with inclusion support needs can be found on the department's website. For further information on the school exemption process, please contact the child's local school or the local educational services team. Your local educational services team can be contacted on 131 536.

For children who will be attending school in a state other than NSW, adherence to the relevant State’s legislation and processes for school exemption documentation is required.

4.8 Corrections and previously ineligible applications

A provider wishing to make corrections or add information to their applications should make a request to the department. The department will review all requests and may return the submitted application to ‘draft’ for re-editing and re-submission.

Any requests to correct submitted applications after the relevant closing date will only be considered for errors related to the child's personal details (for example, child’s name), enrolment information (for example, weeks of enrolment), or if supporting documentation provided is not accessible to the department. Corrections will not be permitted for the purpose of providing new or updated information after the closing date.

Requests to correct submitted applications for the purposes of providing new or updated information before the relevant application closing date will be considered.

All requests and decisions are documented and retained by the department.

Applications that have previously been assessed as ineligible cannot be edited and resubmitted in ECCMS. A new application should be submitted when new or updated information becomes available.

4.9 Support available to applicants

Preschools are encouraged to contact their Sector Capacity Building (SCB) provider for support before 31 December 2026. SCB providers can assist preschools with (but not limited to):

• understanding the eligibility criteria and funding tiers
• support to submit applications
• developing ILPs
• understanding how funding may be best utilised to support a child across their enrolment

Contact details for SCB providers can be found on the Sector Capacity Building Program page.

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

• calling 1800 619 113; or
• emailing ecec.funding@det.nsw.edu.au

The department may engage with preschools regarding applications and hours of support requested where there may be a need to clarify aspects of the application.

5 Application opening, closing and outcome dates

This program operates on a calendar year, from 1 January 2027 to 31 December 2027.

Applications for the 2027 program are expected to open on 2 November 2026. Key dates, including application outcomes and payment periods are outlined below.

The following other key dates also apply.

There are specific exceptional circumstances where the closing dates may be different, and specific ‘backdating rules’ set out below.

These dates may be subject to change. The department will notify providers or preschools via email of any changes to these dates.

* Only certain types of variations (namely, increase in hours, decrease in hours, extended absence and child has left) and applications for children enrolled after the Quarter 4 application closing date will be considered for payment.

Providers should allow up to 10 business days from notification of the outcome for funds to be deposited into their nominated bank account.

Exceptional circumstances for an extended closing date

The department may consider requests related to the extension of time for submission of Inclusion Funding Program applications. Requests should be made in writing and emailed to ecec.funding@det.nsw.edu.au.

All extension requests will be considered by the department on a case-by-case basis and will only be approved under limited and exceptional circumstances. Once a request related to the extension of time for submission of applications has been provided, contact will occur within 5 business days with the outcome of the request. Please note that depending on the time of year, type and/or volume of enquiries or requests received, response times may extend to up to 10 business days.

Exceptional circumstances are circumstances beyond the control of the preschool that impact its ability to submit an application by the relevant closing date. Exceptional circumstances may include circumstances like or related to an environmental disaster, long-term illness of staff, or an inability to access ECCMS due to a known (to the department) or system-wide issue.

5.1 Backdating

5.1.1 Backdating for new applications

The deadline for backdating for the period from 1 January 2027 to 9 April 2027 is 9 April 2027.

Applications assessed as eligible for annual funding submitted up to and including 9 April 2027 will be backdated to the child’s enrolment start date for 2027, up to the maximum of 750 hours.

Funding adjustments for approved variations submitted by 9 April 2027 will be backdated to the variation start date. This includes approved variations when:

• adjustments to enable the child’s meaningful participation change, and the preschool would like to request a review in funding eligibility from Tier 2 to Tier 3
• adjustments to enable the child’s meaningful participation change, and the preschool would like to request in increase in funded hours

Funding adjustments for approved variations, which may result in negative funding allocations, will be calculated on a pro-rata basis, according to the variation start date:

• the child leaves the preschool
• adjustments to enable the child’s meaningful participation change, and the preschool would like to request a review in funding eligibility
• adjustments to enable the child’s meaningful participation change, and the preschool needs to request a decrease in funded hours (including reducing funded hours to zero where the child no longer requires funding)

Exceptional circumstances for backdating

Under very limited and exceptional circumstances, the department may consider backdating for applications submitted after 9 April 2027. Exceptional circumstances are circumstances beyond the control of the preschool that impact its ability to submit an application by the relevant closing date. This may be: environmental disaster or trauma, child protection concerns, cultural considerations, as well as cultural safety, and individual or family needs and circumstances. All exceptional circumstances funding requests will be considered by the department on a case-by-case basis.

Such exceptional circumstances requests will not be considered to reverse the impact of the backdating rule on funding allocations.

Applications must state:

• a clear justification of how the circumstances are exceptional, that is, what circumstances mean that more than the eligible hours are required to implement the proposed adjustments for this child; and
• a description of the proposed adjustments, that is, what adjustments will be provided with the additional hours being requested.

All exceptional circumstances funding requests will only be considered by the department on a case-by-case basis and can be indicated in the application form. Once a request related to backdating has been provided, the outcome of the request will occur at the time of the relevant notification of outcome period. For any enquiries received by email (ecec.funding@det.nsw.edu.au), contact will occur within 5 business days. Please note that depending on the time of year, type and/or volume of enquiries or requests received, response times may extend to up to 10 business days.

5.2 Priority payments

A priority payment may be made outside of the regular quarterly payment schedule for eligible Tier 2 and Tier 3 applications. This will occur during the relevant quarter, and prior to the payment dates as outlined in Section 5 Application opening, closing and outcome dates.

They must meet the following, additional criteria:

• significant safety concerns for the child and/or other children, and/or staff at the preschool
• application is submitted within the first 4 weeks of the Quarter 2, 3 or 4 application periods
• assessment determines that there is an urgent need to remove barriers to ensure a child’s access and participation
• the significant safety concerns box is selected in the child’s application in ECCMS.

Examples of safety concerns may include, but are not limited to:

• injuries to self and/or other children/staff
• leaving or attempting to leave the preschool program
• physical actions such as hitting, kicking, biting, spitting, or throwing furniture.

Subsequent payments following a priority payment will return to the normal quarterly payment schedule.

6 Assessment criteria and feedback

6.1 Assessment of grant applications

The department will individually assess all Inclusion Funding Program applications against the eligibility criteria and assessment requirements as outlined in these program guidelines.

The assessment panel consists of Department of Education employees from the Early Childhood Outcomes division, particularly, the Quality, Participation and Connections Directorate. Panel members are Grade 7/8 Program or Project Officer level or above. Panel members are appointed based on their expertise and experience in the early learning sector and/or inclusive education.

Recommendations are made by Program or Project Officers, Senior Policy/Programs Officers, Manager, Disability and Inclusion or Director, Equity & Inclusion, to the relevant delegate for approval in accordance with the department's financial delegations. See Section 6.3 for information about decision makers.

Preschools may be contacted for additional information, if there is any missing information or errors in the application forms.

6.2 Assessment criteria

All Inclusion Funding Program applications will be assessed according to the following assessment criteria. This program provides educational supports within the preschool program and is not a replacement for disability or therapeutic supports delivered through the Thriving Kids program, NDIS, or similar programs. See Sections 4.3 and 4.4. Application requirements for more information regarding evidence requirements and functional domains.

6.2.1 Tier 2 assessment criteria

An application must demonstrate that the child requires additional individual support to participate in the preschool educational program with:

• frequent individual support in some functional domains; and
• adjustments that are additional to and beyond the support all children receive, planned and reviewed through an individual learning plan.

6.2.2 Tier 3 assessment criteria

An application must demonstrate that the child requires additional individual support to participate in the preschool educational program with:

• substantial and constant individual support sustained across most or all functional domains; and
• adjustments that are planned, monitored and reviewed through an individual learning plan that is informed by specialist input where appropriate.

6.3 Notification of application outcome

Once assessed, the recommendations are made in writing for approval by the relevant delegates of authority as the decision maker. Funding is approved in line with financial delegations under the Government Sector Finance Act 2018 and within the department’s Early Childhood Outcomes division.

This means, depending on the grant value, funding may be approved by a Senior Policy/Programs Officer, Manager of Disability & Inclusion, the Director, Equity & Inclusion, Executive Director, Quality, Participation and Connections or Deputy Secretary, Early Childhood Outcomes.

Providers will be notified of assessment outcomes for each application, and their funding allocation via email, in line with the key dates set out in Section 5: Application opening, closing and outcome dates. When an application has been assessed as ineligible, the information provided to each provider at the time of notification will indicate the relevant section of the guidelines for reference as the reason for ineligibility.

6.3.1 Feedback on applications

Feedback on the outcome of a funding application can be sought from the assessment team by emailing ecec.funding@det.nsw.edu.au and providing the following information:

• child’s application ID
• the preschool name
• contact person at the preschool and contact phone number
• the question/s you have about the child’s application.

Once you have provided this information, a member of the assessment or program team will contact you to discuss your application within 5 business days. Please note that depending on the time of year and the type and/or volume of enquiries or feedback requests received, response times may extend to up to 10 business days.

Note: Please ensure all sensitive information (including diagnostic reports, developmental assessments, approved NDIS plans and observations) is uploaded in ECCMS, and is not sent via email. Providers and preschools should ensure they are aware of their record-keeping and reporting requirements involving personal information.

6.4 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. 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.

The department will publish grant funding information, including program details, provider information and funds awarded to the provider, on the NSW Government Grants and Funding Finder in line with the Grants Administration Guide.

The publication of information will comply with any legal requirements under the Privacy and Personal Information Protection Act 1998 (NSW) (PPIP Act), the Health Records and Information Privacy Act 2002 (NSW) (HRIP Act), State Records Act 1998 (NSW) and other statutory requirements.

7 Spending rules

Funding provided through this program must be used in 2027, and to support the children whose applications are assessed as eligible and for either or both of the following activities:

• To increase the educator to child ratio during identified periods of the child’s attendance, enabling the child to participate in the preschool educational program and achieve the learning outcomes documented in their ILP.
• Complete other activities directly related to the development, delivery and review of the child’s ILP, including:
  • developing the ILP
  • collaborating and strengthening partnerships with other professionals working with the child
  • engaging with the Sector Capacity Building program on matters related to the child
  • offset the course costs of professional learning that cannot be provided free of cost as part of the SCB program
  • costs to cover staff wages for attendance of professional learning, including backfilling
  • staff to attend the training

When completing the application for the Inclusion Funding Program (in ECCMS), applicants must indicate the requested hours for employing additional staff to directly support the child, specifically, in the table for enrolment details and support hours requested.

Similarly, support hours requested to undertake other activities to support the child must be reflected in the 'other support hours' section in the ECCMS application form.

The hours of funding required to offset actual professional development costs must also be included in the 'other support hours' section in the ECCMS application form.

Preschools are expected to use funding in line with the activities stated above, and within the amounts requested from each funding category. Preschools may choose to utilise all Tier 2 and Tier 3 funding flexibly across both funding categories (direct and indirect supports), and in a way that is responsive to the individual child/ren and preschool’s needs.

How funding has been used must be documented during the annual financial accountability process.

Funding cannot be used for anything else, for example:

• payment of fees charged to a parent/child
• early intervention or functional supports, including employment or payment of therapists for children and specialist health consultations from medical specialists or allied health professionals (including for assessments)
• resources, including equipment, furniture and environmental modifications
• general administrative costs, or activities that are not associated with directly supporting individual children’s inclusion needs in educational settings. Examples include rental and licence costs, maintenance, utilities, cleaning, accounting and auditing, travel and accommodation costs associated with professional learning
• to offset existing staff costs, including any staffing costs associated with meeting the minimum educator to child ratios for centre-based services under the National Law and Regulations
• paying for professional development (including course costs, even if related to the inclusion of the child) where this type of training can be provided free of charge by the Sector Capacity Building provider for the local area

Funding provided by the department is a contribution to the possible expenses associated with implementing adjustments to enable individual children to meaningfully participate in the preschool educational program.

Approved funding cannot be transferred between preschools when a child withdraws and enrols in a new preschool. The new preschool should submit a new application. Any funding not used due to changes to a child’s circumstances, such as when a child leaves the preschool (see Section 4.6 Variations) must be returned to the department.

Spending should directly support the delivery of high-quality early learning, aligning with the 7 Quality Areas of the National Quality Standards (NQS) and ensuring that every expenditure contributes to ongoing service improvement and positive outcomes for children.

All program spending should directly support the delivery of quality preschool educational programs.

7.1 Hours of support must be used

Inclusion Funding Program applications must only be made for the hours of support that a preschool can spend in accordance with the program spending rules.

If a preschool does not need or intend to employ additional staff to directly support individual children who meet the eligibility and assessment criteria, they may only apply for the hours to undertake other activities to support the child under the program spending rules.

The department may engage with preschools regarding applications and hours of support requested, where there may be a need to clarify aspects of what is being applied for.

8 Financial accountabilities and funding compliance

8.1 Grant agreement (Terms and Conditions)

This document forms part of the 2027 Funding Agreement with Approved Funded Providers (providers) that is entered into with the department.

The source agency for the funding is the department.

Funding is provided under and released in accordance with the Funding Agreement entered into between the provider and the department.

These guidelines may be amended or replaced from time to time. Preschools and providers must comply with the current version of the guidelines.

8.2 Financial accountabilities

In accordance with the Terms and Conditions, providers must submit a financial accountability statement for each funded preschool. Financial Accountability Statements provide assurance that public funds have been used for their intended purpose and in accordance with the program guidelines.

Financial accountability statements are completed through ECCMS. Before each statement is released, the department will advise providers of the applicable reporting period, submission requirements and due date. Further information is available in the Funding Compliance and Obligations.

The financial accountability process for the 2027 funding allocation will be undertaken in 2028, and providers will be notified when this is due.

Providers complete their financial accountability statements on a calendar year basis.

Providers are responsible for ensuring that all required Financial Accountability Statements are accurate, complete and submitted by the due date. Providers must complete any outstanding financial accountability requirements before entering into a new Funding Agreement.

The department reserves the right to pause or cease funding where a provider has more than one year of Financial Accountability Statements outstanding.

8.3 Performance accountabilities

Providers will also be required to complete annual performance accountabilities to measure the success of the supports provided in promoting inclusion in preschools. Data and descriptions of how the Inclusion Funding Program and the Sector Capacity Building Program have assisted in maintaining and improving the inclusion capabilities of the preschool and in providing an inclusive preschool educational program. This will be required of providers at the completion of each funding year, and the department will contact providers when this is due.

Information required may include details of how funding was expended against items permissible under the spending rules and whether or not funding was able to address inclusion barriers at the preschool (service) level. This information will then be used to help determine areas for program improvement in subsequent years.

8.4 Unspent funds

Providers are required to spend all funding in accordance with the spending rules during the relevant program period (see Section 7 Spending rules).

The department recognises that providers may have unspent funds at the end of the applicable reporting period. Providers must declare all unspent funds in their Financial Accountability Statement.

Providers may be required to return unspent funds to the department. Where repayment is required, the department will advise the provider of the amount to be returned and provide repayment instructions. Unless otherwise approved by the department, the provider must return the funds within 20 business days of receiving the repayment instructions.

Providers experiencing difficulty meeting the repayment requirements may request a repayment plan. Repayment plans are subject to departmental assessment and approval.

8.5 Record keeping

The department periodically conducts reviews of preschools and funding distributed to providers. For this purpose, the department may request that providers supply supporting documentation to the department and its representatives, which must be supplied.

Preschools may be reviewed to confirm the accuracy of data provided in their performance and financial accountability statements, and to ensure that the funding provided has been used to support the objectives of the Inclusion Funding Program.

All relevant records must be retained by providers for the purpose of the department undertaking funding compliance reviews.

Examples of relevant records include:

• attendance records of children with eligible funding applications
• financial recordings showing evidence of expenditure in accordance with the spending rules
• parent/legal guardian declaration forms
• enrolment and completed consent forms
• documentary evidence of the child’s inclusion support needs and the adjustment required to enable their meaningful participation in the preschool educational program
• ILPs (see Section 9)
• Certificates of Exemption for any 6-year-old children enrolled in the preschool, as required by Section 4.7 exemptions from compulsory schooling
• other documentation related to funding received under this program

8.6 Monitoring, review and evaluation

Data obtained through the 2027 Inclusion Funding Program, including applications and accountabilities, may be used by the department for monitoring and reporting purposes.

The 2027 Inclusion Funding Program guidelines may be updated or amended at any time. This will be in response to continuous program improvement or where further clarity is required. Changes to the guidelines may be made in consultation with the sector but remain at the discretion of the department. Any changes will be communicated to the sector via email.

The department may undertake an evaluation to understand the effectiveness of the 2027 Inclusion Funding program. Providers may be required to participate through the provision of data and participation in other evaluation activities.

8.7 Service changes

Providers must immediately notify the department in writing to ecec.funding@det.nsw.edu.au of any service changes, for example, relocation, temporary or permanent closure, or transfer of ownership/operations in line with the funding Terms and Conditions. Service changes may impact eligibility for the Inclusion Funding Program and failure to advise the department may result in withdrawal of funding or termination of the Funding Agreement.

9 Individual learning plan (ILP)

The spending rules require that an ILP be developed for each child approved for funding. The characteristics of an ILP are at the discretion of each preschool, but should:

• be a written document that details what the preschool will do for the child. The ILP must include reasonable adjustments being made to support the child to enable their safe and meaningful participation in the preschool educational program
• be developed in consultation and agreement with the child's parents/carers
• be developed with input from other professionals working with the child (such as health professionals and specialists), where relevant
• be clear, concise and only contain relevant information
• be updated regularly and reviewed during the funding period based on the child’s adjustment needs, with a minimum review requirement of every 6 months
• address the following:
  • assessment information reports
  • information about the child's adjustments and supports
  • roles and responsibilities of team members and other services that may work with the child at the preschool (for example, early childhood early intervention providers under the NDIS)
  • summary of the child's strengths, interests and needs
  • long term goals and outcomes
  • specific short-term objectives
  • teaching strategies
  • ongoing evaluation
  • documentation of the processes of transitions and continuities (either transition within the preschool, or from preschool to school)

A preschool can use the ILP to:

• document consultation with the child's parents/carers
• complement the goals and aspirations expressed in the child's NDIS support plans or needs identified in other relevant documentation

STaR has developed a series of resources to assist early learning services with developing and implementing ILPs. These were funded through the department’s Sector Development Program, now known as the Safety and Quality Practice Program. The characteristics of an ILP are at the discretion of each preschool. Access the  resources and webinar 4: Early childhood inclusion – Developing and implementing individual learning plans (ILPS).

10 Additional information and resources

10.1 Contact details, feedback and complaint handling

For questions, feedback or concerns about the Inclusion Funding program or other early learning programs, please contact the department by:

• calling 1800 619 113
• emailing ecec.funding@det.nsw.edu.au. 

An officer within Early Childhood Outcomes will review and respond to your enquiry.

Alternatively, you may:

• Complete the NSW Department of Education  Complaint, compliment or suggestion form.
• Call 1800 619 113.

10.2 Conflict of interest management

The department is required to consider and manage any conflicts of interest that may arise throughout all stages of the funding process. This includes any actual, perceived or potential conflicts that are identified.

All providers are required to disclose to the department any actual, potential, or perceived conflicts of interest in their application which relate to their application. A conflict of interest must also be disclosed during the implementation of a program if it arises. Conflicts of interest may relate to partnerships, third party service provisions, contractors, relationships of 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 assessment panel members are required to disclose any actual, potential, or perceived conflicts of interest that may arise during the assessment process which relate to applications received. If a conflict of interest arises it will be managed in accordance with the applicable Codes of Ethics and Conduct, including for NSW Government Sector Employees.

10.3 Disability Discrimination Act 1992 and Disability Standards for Education 2005

All early learning services have legislative obligations under the Disability Discrimination Act 1992 (the Act) and the Disability Standards for Education 2005 (DSE) to ensure that children with disability can access, enrol, and participate on the same basis as children without disability. The DSE are subordinate legislation made under the Act and clarifies how services must meet their obligations under the Act.

Discrimination can occur directly or indirectly and does not have to be intentional to be unlawful. Direct and indirect discrimination may result in complaints and legal proceedings.

Examples of discrimination include gatekeeping practices such as refusing, discouraging or limiting a child’s enrolment due to disability or additional needs.

Further information on the Act is available from the ACECQA website. The department also encourages preschools to seek support from their SCB provider to explore how barriers to inclusion may be removed or adjusted without additional funding. See Section 4.9. Support available to applicants, for further information on SCB providers.

10.4 Access to information

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

10.5 Ethical conduct

Applications must not provide false or misleading information. Applications, or information related to funding applications that contain false or misleading information may be subject to further review or be assessed as ineligible. The department reserves the right to pause funding, cease funding or require the return of funds from any preschool if it has been determined that false or misleading information has been provided.

The department ensures appropriate accountabilities are in place for resolving ethical issues arising from the assessment process. All assessment panel members will be advised that ethical behaviour is required, and that any breach may constitute corrupt conduct under the Independent Commission Against Corruption Act 1988 and could lead to disciplinary action.

10.6 Glossary of terms

• Functional domains: looks at how a child interacts with, learns in, and navigates their preschool educational program, prioritising their practical participation over a formal diagnosis.
• Funding floor: the minimum level of financial support that a preschool is guaranteed to receive during a funding period. For the purposes of this funding program, is applicable only for preschools for who meet eligibility requirements for Tier 2 funding and whose total Tier 2 funding is less than the floor amount.
• Individual learning plan: a written document that details information about the child and the reasonable adjustments being made to support the child to enable their safe and meaningful participation in the preschool educational program children. The characteristics of an ILP are at the discretion of each preschool.
• Universal funding: funding that enables all children to access and participate in preschool education in the years before school. For the purposes of this funding program for eligible preschools, refers to the Universal Preschool Funding program and the Mobile Preschool Funding program.
• Unspent funds: any amount of any funds which have been paid to the provider, but which have not been spent or legally committed by the end date under these program guidelines and funding agreement between a provider and the department. Any unspent funds are documented through the financial accountability statements. Further information about unspent funds can be found in the Terms and Conditions.