A NSW parliamentary report released this week has called on the state government to fully fund fair pay for community preschool teachers and educators and for places like Birrahlee Preschool in Lane Cove, the recommendation cannot come soon enough.
The NSW Parliamentary Inquiry into Early Childhood Education and Care, handed down on 20 May 2026, recommends the state government work with unions and employer groups to address workforce attraction and retention challenges facing the community preschool sector. The findings back a similar call made by the Fair Work Commission in February this year, and come just weeks before the NSW government’s June budget.
A Workforce Under Pressure
At the heart of the issue is a persistent and growing pay gap. Staff in community preschools earn up to 30% less per year than teachers in schools with equivalent qualifications, and around 15% less than colleagues in long day care centres. Teachers and educators are leaving the sector at unprecedented rates, driven by excessive workloads, stress and burnout.
The Independent Education Union of Australia NSW/ACT Branch, which gave evidence at the inquiry last year, is calling for a 15% pay rise to begin addressing what Acting Secretary David Towson describes as “a systemic, gender-based undervaluation of this highly feminised workforce.”
“The industrial umpire has spoken, and now the Parliament has too,” Towson said. “We urge the NSW government to listen to both recommendations for increased funding to fix acute staff shortages caused by inadequate pay and conditions in community preschools.”
Funding for community preschools comes solely from the NSW government and parent fees unlike long day care centres, they receive no federal government funding. In the current cost-of-living climate, the sector is reluctant to pass rising costs on to families through fee increases.
Close to Home: What It Means for Our LGA
Our area is fortunate to have several community-based, not-for-profit preschools within the Lane Cove LGA.
For Birrahlee Preschool, a cornerstone of Lane Cove family life since 1958, the inquiry’s recommendations resonate strongly. In the Cove reached out to Director Peta Kordish for a firsthand perspective.
“From our perspective as a community preschool, the recommendation around government-funded pay rises is incredibly important for the future of the sector,” Kordish said. “Preschool teachers and educators play a critical role in children’s early development, learning and wellbeing, yet many are leaving the profession or moving into schools due to the growing pay gap.”
She noted that while the Federal Government recently supported wage increases in the Long Day Care sector, community preschools funded through the NSW state government have not received the same support — creating further inequity and additional pressure on standalone preschools.
“Government-funded pay increases would not only recognise the professionalism and value of early childhood educators, but also help community-based preschools like ours continue providing high-quality, consistent programs for children and families.”
Birrahlee, which is rated as Exceeding National Quality Standards, is fortunate to have a passionate and dedicated team, but like many community preschools across NSW, workforce attraction and retention is becoming increasingly challenging.
“For families, stable and experienced educators make a significant difference to children’s sense of belonging, emotional wellbeing and school readiness,” Kordish added. “Investing in the early childhood workforce is ultimately an investment in children, families and the broader community.”
More Than a Service Provider
Here at In the Cove, we know this story personally. Present and past members of our team have had many of our children pass through Birrahlee’s doors, and we’d all say the same thing: you couldn’t pay these educators enough. The dedication and passion they bring every single day is extraordinary.
As a former Birrahlee family myself, I can speak to the profound role the preschool played in my children’s emotional development before they entered primary school. But what has stayed with me most isn’t something that happened while my daughter was enrolled, it’s something that happened after.
Months into kindy, I received an email from Jody, the Inclusion Support Teacher at Birrahlee. She wanted to know how my daughter was settling in as she struggled with nerves around the transition to primary school. She said she’d been thinking about her. That kind of genuine care, reaching out not because it was required, but simply because she cared is something you can’t put a dollar figure on.
The June Budget: A Critical Moment
With the NSW state budget due in June, the IEU says the time for action is now. Despite months of negotiations, the government has still not committed to a funding boost. Without one, community preschools may be forced to cap enrolments or increase fees — outcomes that would affect families right across the state, including here in Lane Cove.
“The entire community stands to gain from a strong preschool sector,” Towson said.
Birrahlee Preschool is located at 70 Burns Bay Road, Lane Cove. Learn more at birrahlee.com.
We’ve written about Birrahlee before — read about their recent Open Day and their 60th anniversary celebrations.
Coming soon: Kelly’s Place Preschool in Crows Nest — a council-operated community preschool facing its own pressures as it works to renew its lease. We’ll be sharing that story shortly.
