Building Early Education Fund – Small Scale Market Sounding - CBDC

This is a selective market sounding exercise to determine the interest of not-for-profit providers with a track record of delivering high quality early childhood education and care (ECEC) who currently operate less than 10 Centre Based Day Care (CBDC) services. This opportunity is for services who are interested in building or expanding and operating ECEC centres in areas of need.

Building Early Education Fund

The Australian Government is investing $1 billion through the Building Early Education Fund (the Building Fund) to build and expand ECEC centres in areas of need.    

The Building Fund includes:   

• $500 million in targeted capital funding, delivered through multiple rounds, to establish new services and increase the capacity of existing ECEC services.
• $500 million provisioned for future Commonwealth investment in owning and leasing a portfolio of ECEC centres to increase the supply of services, with $2.3 million over two years from 2025–26 to undertake a business case to inform final design.  

Funding will be focused on state and territory governments, local governments and not-for-profit providers with a history of high-quality ECEC provision. It will be targeted to priority and under-served markets, including regional areas. Where possible, services will be located on or near existing school sites.   

The Building Fund will invest in additional ECEC sites and places – it is not intended to cost-shift planned market investment.

More information about the Building Fund can be found here.  

Future grant opportunity 

Future sector grants will be available for not-for-profit providers, including Aboriginal and/or Torres Strait Islander Community Controlled Organisations (ACCOs), who are capable of building or expanding and operating services in areas of need. Targeted capital funding will be available to deliver additional new ECEC places or services for Australian families in areas of need, over an extended period of time.

Information about future funding rounds will be made available in due course and on the department’s website.

This is not a grant application. The responses may inform the eligibility criteria for a future grant opportunity.

Who are we looking to hear from?

You may submit a response to the market sounding, if your organisation meets all the following criteria:

• your organisation is a not-for-profit (NFP) organisation 
• your organisation is a Child Care Subsidy (CCS) approved provider, and 
• your organisation currently operates between one and nine CBDC services, as of the close of this market sounding exercise.

We are looking to hear from organisations:

• with a strong track record of meeting requirements under the National Quality Framework (NQF) for the delivery of ECEC 
• that consistently demonstrate compliance with the Family Assistance Law
• with interest and capacity to modify, expand or build CBDC services in areas of need, and
• which may be an Aboriginal and/or Torres Strait Islander Community Controlled Organisation, or other First Nation-led provider.

What will funding be available for?

Targeted capital funding will be available to build or expand additional ECEC services in areas of need. For example, this may include funding for projects:

• in areas where new ECEC services would be viable, but there are currently barriers for organisations to access finance for new infrastructure
• under development which could be expanded with capital co-contribution from the Building Fund to deliver additional places, for which there is sufficient demand
• which expand existing services (through new infrastructure or building modifications) to deliver additional places, for which there is sufficient demand
• where building modifications or an additional building could enable organisations delivering other children’s services to integrate and deliver a new ECEC service, and
• where an existing building could be modified to establish a new ECEC service.

What are areas of need?

The Government is working with stakeholders to inform Building Fund design and identify priority locations. Priority areas will also be informed by analysis of relevant data on supply, need and disadvantage, as well as community advice.

What happens next?

Once you have submitted a response to the marketing sounding, you will receive a confirmation email upon completion of the form. The department will provide further information about the Building Fund, including future grant opportunities, in due course.

The department will use the responses submitted through the market sounding to inform the nature of a future grant opportunity, including the eligibility criteria, the permitted use of grant funds (including the proposed locations), and timeframes.

A grant opportunity is intended to then commence. Achieving value for money in the context of each site, including delivering on the Building Fund’s objectives, will be a key factor in final funding decisions.

This form must be completed by a registered person with management or control (PMC) of your provider OR a nominated individual.  Your application information must align with your Child Care Subsidy (CCS) details. You can find information on updating your details here.  

Nominated Individuals 

To authorise a nominated individual to complete this market sounding form, your provider PMC must provide signed permission prior to completing this market sounding form (for example a declaration via email). Please upload this signed permission when prompted by the form below.

Documentary evidence is not required for the purposes of market sounding.

You have until 5pm AEDT on 11 December 2025 to submit a response to this market sounding exercise. Please start your response early – no extensions can be accommodated. However, the department may request further information from you after the deadline, at its sole discretion.

Before you proceed, please confirm the following details.