Preschool Reform Agreement

The Australian Government and all states and territories have agreed to the Preschool Reform Agreement. It is a $2 billion, four-year national reform agreement.

The agreement aims to:

  • strengthen the delivery of preschool
  • better prepare children for the first year of school.

The agreement runs from 2022 to 2025. It includes the development of a Preschool Outcomes Measure for teachers and educators.

About the agreement

The Preschool Reform Agreement locks in Australian Government funding for preschool to the end of 2025. It also commits all governments to a collaborative reform agenda. The aim of the reform agenda is to improve preschool participation and outcomes. The agreement was announced as part of the 2021–22 Budget.

Under the agreement, the Australian Government and all states and territories are working collaboratively to progress three important reforms to:

  • enhance funding equity
  • improve preschool participation
  • improve child outcomes.

To support these reforms, the Australian Government will spend an additional $28.7 million to:

  • improve the quality and transparency of preschool data available nationally
  • develop a new Preschool Performance Framework.

Australian Government funding

Under the agreement, the Australian Government will continue to provide a per-child contribution to states and territories. In 2023, this will be around $1,378.

This funding supports the delivery of 15 hours of preschool a week – 600 hours a year – for all children in the year before they start school.

Under previous agreements, states and territories could use funding to support universal access.

Under the new agreement, states and territories must pass on the Australian Government’s per-child contribution to benefit children in the setting in which they attend.  

This reform was designed to create greater funding equity for families and children across Australia.

Improving attendance and outcomes

Under the agreement, the Australian Government and states and territories will pursue an ambitious reform agenda. They aim to lift preschool attendance and outcomes to maximise the benefits of preschool.


From 2024, the Australian Government will work with states and territories to establish new state-specific preschool attendance targets.


The Australian Government is working with states and territories to develop, trial and evaluate a Preschool Outcomes Measure.