Number of preschool students

IBISWorld expects that the number of preschool students will rise by 3.0% in 2024, to 347,523 students. This growth is expected to be aided by rising federal and state government funding and an increase in the population aged four and five years old. In particular, the $2 billion Preschool Reform Funding Agreement, which is designed to improve preschool education and drive up enrolments, has secured significant federal funding until the end of 2025. Further, the reopening of Australia's borders will also inspire growth in preschool enrolments in the current year. Migration ceased from March 2020 to February 2022 as the Federal Government sought to minimise the effects of the pandemic in Australia. Migration quotas have increased significantly due to ongoing and emerging skills shortages, leading to the admission of tens of thousands more migrants each year compared to levels before the pandemic. These migration and funding increases will drive growth in preschool enrolment numbers in 2024.

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, has contributed to growth in preschool enrolment numbers. 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. However, growth in the number of preschool students has been mitigated by the intermittent closure of schools and the closure of Australia's borders during the pandemic. In an effort to curb the spread of the virus, preschools were forced to close on and off during the three years through early 2022. Parents' inability to enrol their children in preschools during this time has slowed growth in enrolment numbers. However, this trend is expected to change now that restrictions have eased. Overall, IBISWorld forecasts the number of preschool students will rise at a compound annual rate of 0.7% over the five years through 2024.