Community-based preschools in the Hunter say they are facing a deepening staffing crisis as qualified early childhood teachers leave the sector for better-paid roles. Teachers in community-based preschools hold the same qualifications as their private-sector counterparts, but are paid up to 30 per cent less.
The issue came to a head during hearings at the Fair Work Commission, where union representatives argued that wages in community preschools are no longer competitive. While early childhood teachers in childcare centres received a 15 per cent pay rise in recent national wage cases, those in community preschools were excluded.
Deputy President Wright handed down recommendations in December 2025, finding it is the responsibility of the NSW State Government to ensure wage increases are properly funded. However, community preschools say they are constrained by the Start Strong Program, which requires them to keep fees affordable for families. They say the Government has advised centres to raise fees to cover wage increases — something Raelee Smith, Educational Leader at Muswellbrook Preschool Kindergarten, says goes against the program’s intent.
“It’s interesting that the State Government say they’re not the employer,” she said.
“That’s correct. But they are the major funder, and the wording in the legislation says that was put in place so we could bargain with the State Government.
“It is actually their responsibility to try and fund these wage increases so that we don’t stop losing staff outside of the sector to either long day care, to schools, or to other professions entirely where the wages are higher.”
Smith says without urgent reform, preschools in the Hunter will continue to struggle to attract and retain staff, putting pressure on services relied upon by families across the region.
“For many towns in the Upper Hunter it’s the only service in the town there aren’t childcare centres,” said Smith.
“So if we can’t keep our community-based preschools staffed, we can’t open the doors and if we can’t keep them afloat financially, then they’re gone. And some of these services have been in their communities for 40, 50, 60 years or more..
“They’re the only place a child can access a quality early childhood education and in the years before school. So if we lose the model, then there’s a lot to be lost in rural and regional areas in particular.”
Community-based preschools across the state will be wearing pink tomorrow to raise awareness of the issue.

