Universal preschool bolstered by loans

The Malinauskas Labor Government is expanding its non-government school loans scheme to support the delivery of universal three-year-old preschool across the state.

The budget includes a $171 million expansion of the non-government school loan scheme, to increase eligibility for preschool infrastructure projects.

The amended loan rules now allow for standalone early childhood education and care projects to be eligible for consideration – where once they had to be co-located on a school site.

All non-government schools, not-for-profit early childhood education and care providers as well as associated system authorities are eligible to apply for low interest loans between $500,000 and $10 million from the government.

The delivery of three-year-old preschool, which is being introduced progressively across government and non-government preschools from 2026, is one of the key early childhood reform initiatives being delivered by the Malinauskas Labor Government, following the Royal Commission into Early Childhood Education and Care.

The loan scheme will prioritise infrastructure projects that:

• Increase enrolment capacity in areas where there is demand
• Support student retention
• Refurbish existing facilities to provide a modern learning experience

The funding is part of an overall $320 million School Loans Scheme which has already provided $142 million in loans to 22 projects.

The South Australian Government Financing Authority (SAFA) worked with the Office for Early Childhood Development (OECD) and the Department for Education (DfE) to extend eligibility to support the State Government’s commitment to deliver universal three-year-old preschool.

Preschool for three-year-olds is fundamental to achieving the 20-year goal to reduce the rate of South Australian children who are developmentally vulnerable when they start school from 23.8 per cent to 15 per cent.

The scheme is open until 31 July 2025.

Quotes

Attributable to Stephen Mullighan

The expansion of the School Loans Scheme will support non-government early childhood education providers improve their facilities in readiness for the rollout of preschool for three-year-olds.

It’s a financially responsible way in which we can ensure preschools have the support they need to be ready for the roll-out of three-year-old preschool.

Attributable to Blair Boyer

Expanding the loan scheme is another step in the Malinauskas Labor Government’s commitment to delivering three-year-old preschool and our investment in early intervention.

We are rolling out three-year-old preschool from next year and these loans will ensure preschools have the infrastructure ready to go.

This work continues to provide support to the sector to ensure the best outcomes for a generation of South Australian children, some of whom are yet to be born.