The early childhood education and care sector in NSW faces a critical shortage, with limited availability of quality ECEC services

particularly affecting regional communities where families need support most. This crisis is compounded by a significant workforce shortage of qualified ECEC professionals, creating an urgent need for innovative delivery models that can maximise both infrastructure investment and staff utilisation (Jobs and Skills Australia, 2024).

Traditional standalone ECEC developments struggle with prohibitive costs due to poor economies of scale, especially in remote locations with lower population density, while navigating complex regulatory frameworks and fragmented planning approaches across multiple government levels. These financial viability concerns are deterring the investment needed to address growing demand, making co-location not just beneficial but essential for sustainable service delivery.

Co-location offers a transformative solution by sharing infrastructure costs, streamlining approval processes, and creating synergies that enhance service quality and accessibility. Major employers have successfully integrated ECEC co-location into their workplace strategies, solving recruitment and retention challenges (Australian Resources and Energy Employer Association, 2023).

Co-location partnerships deliver measurable outcomes – from supporting working families and gender equity in the workforce, to revitalising regional communities through shared infrastructure investment. Co-location transforms ECEC from a cost burden into a strategic asset that benefits businesses, communities, and families simultaneously, making it an urgent priority for addressing NSW’s ECEC supply and demand challenges.

Benefits of high quality ECEC

• Early childhood development outcomes and school readiness for regional children Workforce participation enabling parents (particularly mothers) to engage in employment.
• Economic development through increased local workforce capacity and consumer spending.
• Social equity ensuring regional families have access to quality early learning opportunities.
• Population retention and attraction supporting regional growth and sustainability.
• Workforce attraction and retention for ECEC co-located with businesses.
• Strong investment option since there is large existing demand for quality ECEC, with demand projected to grow in line with regional population growth.
  • The Australian Competition & Consumer Commission found, for example, that centre-based day care centres are seen as a reliable investment compared to other commercial property (ACCC Childcare inquiry releases final report – KWM).
• Well located ECEC can be an attractor in new master planned communities, estates or developments.
• Decreased expenditure on remedial education and health services Reducing developmental vulnerabilities

Types of development

It is important to recognise that this toolkit is intended to support a variety of development contexts in which ECEC services may be delivered. For the purposes of this toolkit, it is assumed that all forms of development, whether greenfield or infill, have the potential to result in a mixed use outcome, particularly where co-location of ECEC services is pursued.

Even within standalone or early-stage developments such as greenfield sites, the inclusion of an ECEC service introduces an additional land use alongside residential, commercial, or community infrastructure, effectively creating a mixed use environment. The Standard Instrument LEP defines mixed use development as a building or place compromising two or more different land uses. As the focus of this toolkit is the co-location of ECEC services, even if other forms of development are explored, they will end up with a mixed use outcome because of the nature of co-location.

While the toolkit will provide targeted guidance for development contexts, the overarching planning assumption will be that the final built form or land use configuration will constitute mixed use development, consistent with the integrated nature of co- located ECEC services.