IEU members from community preschools around NSW made their presence felt at Budget Estimates in NSW Parliament House on 4 March 2026. Wearing pink, preschool teachers listened keenly as NSW Treasurer Daniel Mookhey acknowledged their advocacy and congratulated them for being members of the IEU. Greens MP Abigail Boyd MLC questioned Mr Mookhey about whether the NSW government would comply with the Fair Work Commission’s recommendation that it increase funding for community preschool teachers and staff.
Watch the full video from Budget Estimates below and read the transcript. If you work in a community preschool in NSW, have your say here.
Next steps: We will be back at NSW Parliament House on 17 and 18 March. We invite you to wear pink for community preschools on Wednesday 18 March.
TRANSCRIPT
Abigail Boyd MLC: Let’s talk about the Fair Work Commission decision in relation to community preschool workers. And I’ll note that in the gallery there are rank-and-file preschool members with over 150 years of teaching experience.
Daniel Mookhey: I welcome you. Very nice to see you. I believe they are IEU members. I congratulate you on being members of your union.
Abigail Boyd MLC: So have you read the Fair Work Commission recommendation?
Daniel Mookhey: I’ve read a bit of it.
Abigail Boyd MLC: Deputy President Wright issued a formal recommendation on the 16th of February directing the NSW Government to take, quote, “all necessary action, including reviewing and increasing funding to give effect to this agreement.” It’s not a suggestion, it’s a recommendation from the Fair Work Commission. Will you comply with it?
Daniel Mookhey: Well, we are very mindful of the Fair Work Commission’s response. We also recognise very much the persistent advocacy of the childcare workers and the IEU members who I’ve met with. I’ve met with the union about this issue, and very much respect the fact that they are using their rights under federal law to pursue an increase as well. As for the NSW government’s immediate response to that recommendation, that’s not a matter which I’m involved in, Ms Boyd, it’s a matter obviously that the Education Department does so. I actually don’t make the operational decision around our response to that, but I can absolutely let you know that we are in dialogue with the department about what its response is likely to be. I don’t have any additional news to provide you on that front, other than to say that I’m aware of the recommendation. I’m aware that the issues are being worked through now, as for the specific industrial relations response that the Fair Work Commission has recommended, it is really a matter for the Education Department to participate in this. They’re the ones who are – they’re not actually parties of the proceedings, but I believe they’re the ones who have been invited to respond.
Abigail Boyd MLC: So it’s well known, Treasurer, that when it comes to funding, the buck stops with you in this government.
Daniel Mookhey: That’s alleged.
Abigail Boyd MLC: There is an amount of funding required here that the Fair Work Commission has found that really, given that the NSW Government exercises such a degree of control over community preschools through Start Strong funding, its participation is required but, ultimately, fee increases aren’t a realistic option to fund the wage increase that’s required. So it’s going to require more funding from your government. Will you finally provide it?
Daniel Mookhey: Ms Boyd, it doesn’t necessarily … that logic chain suggests that there’s inadequate funding now. And the point that I’m making is that there’s actually been a huge increase in childcare funding under the previous government, and our government. As to how that money’s been allocated, that, again, is something, particularly when it comes to the Start Strong component of our involvement, is obviously a departmental decision. It’s not my decision. I’ve also had this conversation with the IEU, because in fact, this was the specific point of conversation I had with the IEU, very respectfully with their leadership, who had every right and did seek out what exactly is the NSW Treasury’s role here. And as I explained to the IEU’s leadership, I’m happy to say to the workers now, and everyone whose advocacy I respect, we have actually provided a huge amount of additional resources for childcare. How that is being allocated to community centres is obviously being worked through.
Abigail Boyd MLC: Can I just bring you – just on this – because I think there’s a couple of points you’ve raised. Firstly, I think the preschool workers behind you will disagree that there’s adequate funding …
Daniel Mookhey: I’m sure they would, I am absolutely, absolutely positive they would.
Abigail Boyd MLC: They have had to pay for it in reduced wages for far too long. But also, while the Fair Work Commission was dealing with this case, your government quietly released its 2026 Start Strong guidelines, which actually cut fee relief funding for 212 community preschools, even further reducing total funding by up to 6.46% for 35% of services. So under your government, you’ve actually reduced the funding and the Fair Work Commission is saying that as a matter of gender equity, 92% of this workforce are women, it is up to the government to finally fund this sector properly so that these people can receive the wages they deserve.
Daniel Mookhey: So there’s three components to that. First is that you’re identifying one program out of effectively three that we provide the funding that funds these particular preschools. You identified one of the programs. My point has been to the Department and to the IEU that there’s actually between all of them, we will absolutely allow Education to provide the policy guidance as to how they allocate the funding between the programs, which is why I just got back to the point that this is actually an operational matter for the department. It’s not for me. If there is any suggestion that you’re making here publicly that somehow I make these calls, it’s just not accurate.
Abigail Boyd MLC: OK. So the buck doesn’t stop with you?
Daniel Mookhey: Not on this one …
Abigail Boyd MLC: So I go to the Education Minister …
Daniel Mookhey: So Ms Boyd if you let me finish. I well and truly respect your advocacy as I do the IEU, as I do others. But this advocacy about this operational allocation of funding is different to the quantum of funding. That is, you’re disputing how the money is being allocated, and you are disputing the quantum. I accept that. I’m saying the quantum has increased at exponential levels and, incidentally, not without controversy. And then, and then fair and insofar as that is your position, I understand it, but that is an issue that, fundamentally, I suspect that you’ll be raising with the Deputy Premier when she appears before Estimates.
