The Australian Government is investing $1 billion to build and expand early childhood education and care (ECEC) services in areas of need across Australia. This is an important step on the path to a universal ECEC system.
On this page:
How the Building Early Education Fund works
The Building Early Education Fund provides capital funding to build new and expand existing ECEC services in areas of need, including the outer suburbs and regional Australia.
This will give more families access to quality ECEC where it is needed most.
The Australian Government will invest $1 billion in the Building Fund. This includes:
- $500 million in funding to build and expand ECEC services
- $500 million for the Australian Government to build, own and lease ECEC services.
Funding opportunities
The Building Fund includes $500 million to build and expand ECEC services. This funding will be targeted to areas of greatest need and will roll out across several priority streams.
Co-located services on or near schools
Capital funding will be provided to the states and territories to build or expand ECEC services on, or near, school sites.
Sector grants
Grants will be available to expand or build new ECEC services in areas of need.
A large-scale grant round will provide capital funding for not-for-profit providers to expand or build new ECEC services in areas of need. An additional grant round will provide support to smaller providers and in-venue Family Day Care providers.
To help Close the Gap, we will continue to work with First Nations partners to deliver dedicated support under the Building Fund to increase early learning delivered by Aboriginal Community-Controlled Organisations.
We will provide further details about these grants when available.
Market sounding now open. Submissions close 5 November 2025. We’re seeking input from large not-for-profit providers about building new or expanding existing ECEC services in areas of need. Find out how to respond.
Co-investment in integrated services with IDAC
Up to $50 million of grant funds will be set aside for co-investment in integrated services with the Investment Dialogue for Australia's Children (IDAC). These projects may bring together:
- early learning
- child and maternal health services
- family and community support.
IDAC is a 10-year collaboration between government and philanthropy to improve the health and wellbeing of children, young people, and their families. Philanthropic partners of IDAC have also committed in-principle funding up to $50 million.
Owning and leasing
We are exploring ways to increase the supply of ECEC services. One option is for the government to build, own, and lease ECEC services.
We are developing an initial business case to explore how this could work. Any next steps will be subject to further government decisions.
The government has set aside $500 million for future investment in owning and leasing ECEC services.
Where we are building
The Building Fund will target areas across Australia where ECEC is needed most. This will include areas of undersupply in our outer suburbs and regions with a dedicated focus on areas experiencing higher levels of vulnerability and disadvantage.
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.
When we are building
The Building Fund’s early focus will be on:
- building ECEC services on or near school sites, including election commitments
- delivering new ECEC to communities most in need in a timely manner.
Why we are building
The Building Fund is an important step towards a universal ECEC system. It will:
- increase the availability of quality ECEC for families
- address undersupply in areas of need.
How we are supporting the workforce
The success of the Building Fund relies on a high-quality and well-resourced ECEC workforce.
We are investing in measures to build and sustain the ECEC workforce, including:
- $3.6 billion to provide educators with a 15% pay rise – delivering a stable and secure workforce
- $72.4 million in professional development opportunities
- a 10-year national workforce strategy to ensure a sustainable, high-quality workforce into the future.
Learn more about how we’re supporting the ECEC workforce.
How to stay informed
Subscribe to our newsletter or join our Facebook group to get the latest news about the Building Fund.