We are seeking input from not-for-profit providers, local governments and First Nations led providers about their capacity to build and expand early childhood education and care (ECEC) services in areas of need across Australia. Responses will help shape future grant opportunities under the Building Early Education Fund.
On this page:
What is market sounding?
Market sounding is a process where we seek input from not-for-profit organisations about their capacity, interest, and any constraints in delivering new or expanded ECEC services. Your feedback will help shape future grant opportunities under the Building Early Education Fund.
Market sounding is not a grant application. Responses will inform the design and eligibility criteria for future grants.
Why are we doing this?
The Building Early Education Fund is a $1 billion investment to build and expand ECEC centres in areas of need, including the outer suburbs and regional Australia. By understanding the sector’s capacity and challenges, we can design grant opportunities that are practical, targeted, and effective.
Who can participate?
There are a number of distinct market sounding opportunities. Please read the descriptions below and select the form that best matches your organisation.
The forms must be completed by a person with management or control (PMC) of your provider or a nominated individual. Please note the deadlines for each opportunity, as we cannot accommodate extensions.
1. Large scale market sounding - now closed
Large scale market sounding closed 5 November 2025. We sought views from large not-for-profit providers about their ability to build and operate multiple new services at scale. Thank you to all organisations who participated. Your responses will help inform the design and eligibility criteria for future grant opportunities.
2. Small scale market sounding
Centre Based Day Care
We want to hear from smaller not-for-profit providers and First Nations led providers that:
- hold Child Care Subsidy (CCS) provider approval
- operate between 1 and 9 Centre Based Day Care (CBDC) services
- have a strong track record of meeting the National Quality Framework (NQF)
- have a history of compliance with Family Assistance Law (FAL)
- have interest and capacity to build or expand and deliver at least one CBDC service in areas of need
- have available land or the capacity to acquire land.
Complete the Small Scale Centre Based Day Care Market Sounding Form by 5 pm AEDT 18 December 2025.
In-Venue Family Day Care
We also want to hear from smaller not-for-profit providers and local governments that, in addition to the above, have interest and capacity to modify an existing building to deliver In-Venue Family Day Care.
Complete the Small Scale In-Venue Family Day Care Market Sounding Form by 5 pm AEDT 18 December 2025.
What will funding support?
Future grants are expected to focus on targeted capital funding to deliver new ECEC services in areas of need. For example, projects may include:
- services that are viable but face barriers to accessing infrastructure finance
- projects under consideration that could be expanded with co-contribution from the Building Fund to deliver additional places where there is demand
- sites with lower viability that meet important demand and could be supported across a portfolio of new or existing services.
How are areas of need identified?
To determine priority areas, we will:
- analyse a range of sources including data on supply, need and disadvantage
- work with state, territory and local governments and peak bodies
- consult communities.
What happens next?
If you meet the criteria outlined above, please complete the relevant market sounding form by the deadline.
The form must be completed by a person with management or control (PMC) of your provider or a nominated individual.
Your response will help shape future grant opportunities. We may contact you for clarification or further information. Updates about future grant rounds will be provided on our website.
If you have questions or need help, contact ccshelpdesk@education.gov.au.
Small scale market sounding webinar
We held a small scale market sounding webinar on 20 November 2025.
Download the presentation slides
See questions and answers from the webinar below.
How will the market sounding information be used?
This is NOT a grant opportunity. The purpose of market sounding is to gather information from not-for-profit providers that will inform program design and grant guidelines, ensuring alignment with government objectives. This may include:
- informing eligibility criteria for the grant
- understanding market appetite for the grant opportunity, and
- likely cost estimates.
What type of construction is going to be funded?
Projects must create additional early childhood education and care (ECEC) not-for-profit places and deliver value for money in areas of need, underserved markets and locations of socioeconomic disadvantage.
Examples of eligible construction include:
- new construction sites on land available for centre-based day care
- refurbishing unused spaces (e.g. local government venues for in-venue family day care), and
- expanding viable services facing barriers to infrastructure finance (e.g. adding rooms to existing centre-based day care that increase the number of ECEC places available).
Will areas of undersupply in outer metropolitan regions be covered?
Inner metropolitan areas are not in scope of the program. Outer metropolitan areas, including growth corridors where there is demonstrated need, will be considered.
Who will own the asset?
Not-for-profit service providers or councils will retain ownership of facilities funded through targeted capital grants under the Building Early Education Fund.
What is the timeframe for grants being available?
A grant opportunity for small providers is expected to be available early 2026.
Are Aboriginal Community-Controlled Organisations (ACCOs) and First Nations services considered?
Yes. We welcome input from those services. We are interested in understanding both the need and the capacity of the ACCO sector to deliver services.
Are sessional kindergartens counted in the ‘less than 10 services’ criteria?
No. The criteria for the small-scale market sounding applies to Child Care Subsidy (CCS)-approved providers who operate 1 and 9 CCS-approved services.
Can input be provided by a not-for-profit operating family day care services but not yet CCS approved?
No. We are seeking CCS-approved providers with a strong compliance history under the National Quality Standard (NQS) and Family Assistance Law.
Would the department fund converting an underutilised classroom in an existing centre-based day care (CBDC) service for in-venue family day care (FDC)?
Yes, provided the space is made compliant with regulations and creates additional capacity.
Would you consider community service not-for-profits with no ECEC experience?
No. We are seeking CCS-approved providers with a strong compliance history under the National Quality Standard (NQS) and Family Assistance Law.
We want to expand but have not identified an area. Can the department allocate one?
No. Providers will need to identify areas of demand based on community support. Strong community engagement is essential to confirm projects are located in areas of unmet demand.
Is there short-term support for new services that may not initially be viable?
Current funding is for capital works only. The department acknowledges that operational funding is an issue for some services. Linkages with other programs that may offer operational support are being explored.
Do councils have dedicated staff to support this project?
Providers must engage directly with councils to discuss potential upgrades or extensions. Joint applications may be required where councils’ own assets.
Will there be a set funding limit per application?
Not yet determined. Funding amounts will be agreed at the time of grant contracts.
Could you provide more detail on hub projects?
The Building Early Education Fund includes several funding streams, one of which focuses on hub models. However, this is not the focus of the current small-scale market sounding process.
Hub models will be funded under the Investment Dialogue for Australia’s Children (IDAC) stream, where philanthropic partners have committed funding alongside the Australian Government to deliver integrated hub services.
Are you working with state, local government and peak bodies?
Yes. Engagement is occurring through the Regional Education Commissioner, state and local governments and peak organisations to understand opportunities and gather input.
Could a provider receive funding for 2 projects?
Possibly, depending on final program design. We are interested in hearing from small not-for-profit providers about proposed projects that exist, particularly where they can demonstrate need, additionality, and strong community support.
Could we respond to market sounding if we have an active Development Application (DA)?
Yes. Information about an active DA would help us in designing the implementation of the grant. Decisions on the final design of the program have not yet been made.
Will staff accommodation be funded?
No. The program is able to fund ECEC capital works only. While we acknowledge this is an issue for some communities, it is outside the scope of this program.
Could a mobile service be upgraded to a permanent centre-based service?
Yes, if the proposal demonstrates additional ECEC places beyond current capacity, and if the service meets other eligibility requirements such as regulatory compliance and provider approval status.