13 May 2026 Update
The 2026–27 Budget reinforces the Government’s commitment to expanding early childhood education and care (ECEC) supply through the $1 billion Building Early Education Fund, which provides capital funding to build or expand ECEC services, particularly in underserved, outer‑suburban and regional areas.
Importantly for providers, the Building Early Education Fund is positioned as a supply‑side complement to demand‑side reforms such as Cheaper Child Care and the 3 Day Guarantee, recognising that increased affordability and access must be matched by new physical capacity. While no fundamentally new eligibility rules were announced this year, the Budget signals ongoing rollout, making the Building Early Education Fund a key medium‑term growth lever for the sector.
The first large-scale capital grant round closed on 17 March 2026. The Budget does not indicate when, or if, a new national round will open. Future opportunities are more likely to arise through state‑based capital programs and targeted infrastructure funding rather than a new Commonwealth‑run large‑scale round.
However, the small-scale grant package round is now open. This round targets outer suburb, regional and remote communities and is capped at $3m per site. Applications close 29th May 2026.
The supplemental operational funding round is also open right up until 30 June 2029. This funding provides operations supports to help those who received Building Early Education Fund grants open and operate services sustainably.
December 2025 Update
A major opportunity has been announced for organisations providing Early Childhood Education and Care (ECEC). The Australian Government’s new Building Early Education Fund, with an investment of approximately $1 billion, is designed to increase access to quality early learning in communities that need it most.
The Australian Government has now opened the first large-scale grant round under the Building Early Education Fund, with applications open from 9 February to 17 March 2026 for eligible large not-for-profit providers. This round provides capital funding to support the construction or expansion of multiple early childhood education and care services in areas of need.
For providers, not-for-profits, local councils, and community groups, this fund offers a meaningful chance to shape future services and support better outcomes for children and families.
The Government expects the Fund to support the establishment or expansion of approximately 160 centres, creating around 12,000 additional early learning places nationwide.
For both established and new providers, this Fund provides a pathway to grow services, meet local demand and enhance the quality and accessibility of early learning, directly benefiting children, families and communities.
What the Fund Aims to Deliver
The goal is straightforward: to ensure more families can access high-quality early education close to home.
The Building Early Education Fund is designed to expand access to Early Childhood Education and Care (ECEC) in underserved and rapidly growing communities, including:
- Outer suburban areas,
- Regional and rural communities,
- Locations with limited or no existing ECEC services.
While the Government has not yet released a postcode list or priority map, they have indicated the Fund will focus on communities experiencing clear unmet demand, long waitlists, or limited service availability. Geographic priority areas are being defined as part of a market sounding phase.
“This new fund is a significant opportunity for the early childhood education sector,” says Matthew Crouch, Education Sector expert. “This could benefit organisations considering expansion or new centre builds. We’d encourage them to have a conversation with us about the financial modelling required to underpin their proposal and how their application might look.”
Who Should Consider Applying?
The Building Early Education Fund is particularly relevant for organisations and groups that can expand or establish early childhood education and care (ECEC) services. This includes:
- Not-for-profit ECEC providers,
- Community organisations,
- Local councils,
- School-based partnerships,
- Small to medium operators with growth potential,
- Groups planning new early learning hubs.
Large-scale operations are not a requirement. In fact, the Government is actively encouraging smaller providers, particularly those managing between 1 and 9 services, to engage and explore this opportunity.
What the Funding Supports
While detailed grant guidelines are still being finalised, the Building Early Education Fund is expected to support projects that focus on:
- Capital construction of new ECEC centres,
- Expansion of existing services,
- Initiatives that address unmet demand in target communities,
- Centres located on or near school sites,
- Integrated “early childhood hubs” offering connected family support services.
This investment is designed to deliver long-term community benefits, rather than short-term solutions, ensuring sustainable access to high-quality early learning.
“This fund has the potential to make a real difference in communities where access to quality early learning is limited. Providers who act early to assess their opportunities and plan their projects will be best positioned to benefit” says Matthew Crouch
How to Get Involved
The opportunity for small providers is expected to commence in early 2026. For more detailed information on timelines and eligibility, visit Building Early Education Fund – Department of Education, Australian Government .
Talk to us to explore how your organisation can take advantage of the Building Early Education Fund and prepare for future expansion.
