Preschool for three-year-olds is moving from wishful thinking to brick-and-mortar reality in South Australia. The Malinauskas Labor Government is pulling out its policy toolkit—and chequebook—to make it happen, expanding its school loans scheme to include standalone early childhood education and care projects for the first time. That means more preschools, more classrooms, and a much broader reach across the non-government education sector.
The budget has carved out $171 million to support this expansion, with low-interest loans ranging from $500,000 to $10 million now available to non-government schools, not-for-profit early childhood providers and their affiliated systems. The cash injection opens the door for more facilities to gear up ahead of the planned roll-out of universal three-year-old preschool from 2026.
This is no minor tweak to an old program. Previously, funding was largely tied to preschool facilities that were co-located with school campuses. That’s changed. Now, early childhood projects can stand on their own—and still qualify. Whether a preschool sits beside a primary school or on its own block, if it meets the updated criteria, it’s in the running.
That criteria? Think scale, demand and readiness. Projects that expand enrolment capacity in fast-growing areas, upgrade ageing facilities or help retain students in the long term are likely to be front of the queue. The funding is a part of the government’s broader $320 million School Loans Scheme, which has already seen $142 million distributed across 22 projects.
At its heart, the reform is driven by the findings of the Royal Commission into Early Childhood Education and Care. The Commission made it clear that early investment matters. It also drew attention to a sobering figure: nearly one in four South Australian children—23.8 per cent—start school developmentally vulnerable. The government has set itself a bold goal: bring that number down to 15 per cent within 20 years. Rolling out preschool for three-year-olds across the board is one way to get there.
This expanded loan scheme is part of the nuts and bolts behind that vision. It’s designed to give preschools the physical space and modern resources they need to welcome a new age group of learners. That might mean knocking down walls to open up existing buildings, or it might mean building brand new centres from the ground up.
And this time, the reach is broader than ever. All non-government schools and eligible not-for-profit providers can apply, and the scheme remains open until 31 July 2025. That gives operators time to plan projects, submit applications and lock in the support they need before three-year-olds start walking through the gates in 2026.
Treasurer Stephen Mullighan framed the announcement as a sensible move—not just in terms of education, but economics too. He sees it as a financially responsible way to ensure preschools are ready for the next step. “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,” he said.
Education Minister Blair Boyer highlighted the long-term impact. These aren’t just short-term builds—they’re laying the groundwork for generations of children. “We are rolling out three-year-old preschool from next year and these loans will ensure preschools have the infrastructure ready to go,” Boyer said. “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.”
The focus on infrastructure may not grab the headlines in the way that curriculum changes or staff hiring might, but it’s essential. Without the space, the rollout can’t happen. And without the modernisation of facilities, early learning environments may struggle to deliver the kind of high-quality education that experts say is needed to make a real difference.
The South Australian Government Financing Authority (SAFA), along with the Office for Early Childhood Development (OECD) and the Department for Education, played a central role in shaping the scheme’s new rules. Their combined input ensures that the loan structure supports the practical needs of the sector while remaining aligned with broader government policy on early education.
This collaboration shows that the government is taking the transition seriously, looking beyond temporary fixes or one-size-fits-all models. Every area is different, and providers will now have the flexibility to propose projects that respond to their specific challenges and community needs.
The decision to allow loans for standalone facilities is especially significant for providers operating in locations where co-located schools simply don’t exist. In regional towns or high-growth suburbs, a dedicated early learning centre might be the only viable option. By opening the gates to these proposals, the government is acknowledging that one path to universal access involves multiple starting points.
That kind of flexibility is vital in reaching children who might otherwise miss out. Infrastructure may not always be visible in policy debates, but it forms the backbone of equitable access. Buildings, after all, are where the learning begins.
And it’s not just about numbers on a spreadsheet. The design and condition of a preschool can shape everything from how children interact, to how educators teach, to how families engage with the service. The right space can foster calm, creativity and connection. It can support routines and learning styles. It can encourage children to feel safe, seen and ready to learn.
That’s why the scheme prioritises not just expansion, but refurbishment too. Modern learning experiences need modern environments—and that includes lighting, ventilation, accessibility, outdoor areas and spaces that can flex with the daily flow of young learners.
There’s a long way to go before universal access becomes a lived experience for every three-year-old in South Australia. But with this funding framework, the groundwork is being laid—literally and figuratively. The next step will be to see how many providers take up the offer and what kinds of projects emerge as a result.
Applications are likely to come from across the spectrum: Catholic schools, independent schools, community-based providers and specialist services who’ve been thinking about how to prepare for 2026, but needed the right support to do it.
The government’s message is clear: if you’re ready to build or upgrade in a way that lifts early education outcomes, there’s backing available. And with the deadline set for mid-2025, the clock is ticking—though there’s enough time for thoughtful planning and execution.
This isn’t the end of the story on early learning reform in South Australia. More changes are expected as the full findings of the Royal Commission continue to be translated into policy. But this move gives the sector a strong foundation to build on. It’s about making sure the physical environment keeps pace with the ambition.
There’s still much to be done—training the workforce, engaging families, ensuring consistent quality across diverse settings. But the scaffolding is starting to appear, in the most literal sense.
If all goes to plan, future generations of South Australian children will begin their educational journeys in spaces designed especially for them, supported by educators with the tools to nurture their learning from the very start.
And while three-year-olds may not know what a loan scheme is or care who funded their preschool, they’ll feel the difference—in the room layouts, in the playgrounds, in the atmosphere. That quiet, foundational change might just be the one that matters most.
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