Number of preschool students

IBISWorld expects that the number of preschool students will rise by 2.4% in 2026, to 350,900 students. Preschool enrolment continues to rise, reflecting conditions created by strong federal financing, continued migratory inflows, and a growing population of four- and five-year-olds. Subsidies from continuing Commonwealth programmes keep prices low for families, with the majority paying less than $4 per hour after deductions. From Jan 2026, all CSS eligible families have access to at least 72 hours of subsidised caree. Positive net migration promotes population growth and enrolment increases in urban and regional areas.

More than 341,000 children aged four or five are presently enrolled in a preschool programme, representing a 1.3% increase over the previous year, and nearly nine out of 10 four-year-olds now get official preschool instruction. Preschool students' ages range from three to six years old, with most pre-schoolers aged four or five. The number of four- and five-year olds in Australia has increased over the past five years, largely in line with overall population growth. Expansion in the total pool of available students has boosted preschool enrolment rates over the period.

Government policies promoting universal access to preschool education have boosted preschool enrolment rates over the past five years. On 1 July 2013, the National Partnership Agreement on Universal Access to Early Childhood Education was implemented. The aim of the Agreement is to ensure that all children can access preschool education in the year before beginning primary school for 600 hours per year, delivered by a qualified teacher that meets the National Quality Framework requirements. Over the past five years, consistent growth in funding for the Federal Government's National Partnership Agreement on Universal Access to Early Childhood Education, which has since continued as the Preschool Reform Funding Agreement, a 2 billion reform that began in 2022 until 2025 has contributed to growth in preschool enrolment numbers.

Subsidies and financing for preschool and early childhood education in Australia are rapidly rising, with new state and territory initiatives improving cost and availability for families.An expansion in subsidies made available by state and territory governments over the period have also supported parent and guardian engagement and preschool student enrolment numbers. For example, the Federal Government committed an additional $458.3 million in funding to extend the Universal Access to Early Childhood Education program into 2022. Since the lifting of COVID-19 limitations and the full reopening of borders, preschool enrolments have risen, owing to migration, new infrastructure grants, and increased state subsidies. Previous constraints created by pandemic-related closures and limited enrolment are now being mitigated by active legislative reforms, infrastructural investment, and strong parent participation across Australia. Overall, IBISWorld forecasts the number of preschool students will rise at a compound annual rate of 0.9% over the five years through 2026.