Provisional 2027 kindergarten funding rates are now available.
The rates include increases and changes across several funding streams. These include:
- increased Per Capita rates
- increased Ratio Supplement funding
- changes to the Early Childhood Teacher Supplement
- a new service leader payment for eligible services.
Kinder funding rates increase in 2027 for all services.
Services that operate under the new kindergarten enterprise agreements will receive additional funding to cover the workforce costs associated with these agreements.
The department will confirm the rates after the Fair Work Commission (FWC) approves both agreements.
The FWC has approved the Early Education Employees Agreement (EEEA). The Victorian Early Childhood Teachers and Educators Agreement (VECTEA) is awaiting FWC approval.
The rural travel allowance will also expand in 2027. This will help eligible rural services where a teacher travels more than 100km or one hour by car, one way, to deliver a funded kindergarten program.
The department will provide more information about the new service leader payment, expanded travel allowance and leave reimbursement to eligible service providers before the 2027 kindergarten year.
You can find more information about the funding rates and settings on the Kindergarten funding rates webpage.
One-off 2026 enterprise agreement payment
Service providers that operate under the VECTEA or EEEA will receive a one-off payment of about $400 per eligible 15-hour enrolment.
The payment will help cover the additional salary costs associated with the new kindergarten enterprise agreements from 15 May 2026 until the 2027 funding rates begin in January.
This payment is in addition to the 2.5% increase in kindergarten funding rates introduced at the start of 2026.
The department expects that together, this funding will meet additional salary costs for 2026.
The payment will be available to service providers that either:
- operate under the new enterprise agreements
- have an existing equivalent agreement and commit to providing the salaries and conditions of the new enterprise agreements from 15 May 2026.
Providers that operate under the VECTEA or EEEA do not need to take any action to receive the payment.
The department has processed payments to providers that operate under the EEEA. The department will process payments to providers that operate under the VECTEA once the FWC approves the agreement.
Providers with approved equivalent employment arrangements may also be eligible for the payment. The department will email these providers with more information about eligibility and how to access the payment.
Providers that would like more information about accessing higher kindergarten funding rates based on an equivalent enterprise agreement should contact their local Early Childhood Improvement Branch.
2026 funding monitoring and assurance
The department continues to monitor kindergarten funding calculated and paid through Arrival to ensure payments are accurate.
The first funding review, covering January to May 2026, is complete. We have contacted affected providers about any funding adjustments.
We are finalising the second review, covering June to August 2026. We will email providers directly if we identify an adjustment for their service.
We are also developing funding reports to help providers understand their funding calculations and any enrolment-level adjustments. We will email providers when these reports are available.
Find out more
For more information, refer to Kindergarten funding rates.
For further enquiries, contact Early Learning Funding and Operations by email: kindergarten.funding@education.vic.gov.au
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