Aboriginal-led early learning in New South Wales has received a record boost as part of the state's 2025-26 budget.

The $200.9 million investment, touted as the largest investment in Aboriginal controlled and owned early learning in NSW history, will be delivered in partnership with local Aboriginal communities through the NSW Childcare and Economic Opportunity Fund.

Allocated over four years, the investment will increase the number of places in existing Aboriginal Community Controlled Organisation (ACCO) early childhood services and establish new ACCO-led early childhood services across NSW.

The NSW Government says the investment will support programs to grow and strengthen the Aboriginal early childhood education and care workforce, from study preparation and scholarships to mentoring, professional learning and peer support.

More than 15 new services are set to join the 41 existing ACCO-led early childhood services across the state, with a projected 870 new places for Aboriginal children created through the expansion.

The announcement comes shortly after National Aboriginal and Torres Strait Islander Children's Day, which is celebrated on August 4th every year.

SNAICC - National Voice for our Children chief executive Catherine Liddle said Aboriginal-led early learning centres will help close the gap between Indigenous and non-Indigenous children.

"We know that when Aboriginal and Torres Strait Islander communities are able to design their own responses, we get better results," Ms Liddle told the ABC.

"They are the gold standard in early education and care, so ensuring that more Aboriginal communities are able to stand up those services, that more of our children are able to attend those services, we know that the future looks brighter."

The support package responds to alarming statistics which indicated in 2021 only one-third of Aboriginal and Torres Strait Islander children starting school were assessed as being developmentally on track, compared to around 60 per cent of non-Indigenous children.

The NSW Government says the package is vital to ensure Aboriginal children are getting a strong start in early childhood, to support them in primary school and beyond.

Minister for Aboriginal Affairs and Treaty, David Harris, said the government is committed to improving early childhood learning for Aboriginal children across the state.

"We know that this funding boost to early learning is crucial to helping us Close the Gap by ensuring children get off to a great start with high quality, culturally appropriate early childhood education," Mr Harris said.

"This boost in funding forms part of our government's investment of more than $700 million to improve the lives of Aboriginal people, which includes $246 million delivered through Closing the Gap, in partnership with the Coalition of Aboriginal Peak Organisations (CAPO)."

The investment will also see the First Steps Strategy extended, and continues funding for key programs which support Aboriginal children's early development and outcomes.

They include:

the Ninganah No More program, which teaches Aboriginal languages to more than 2,800 Aboriginal children and 5,400 non-Aboriginal children will continue across the state;

the Aboriginal Families as Teachers program, which currently supports almost 2,000 children across 35 communities; and

the implementation of the Aboriginal Cultural Responsiveness Framework to support the uplift of the cultural capabilities of Department of Education early childhood employees.

The NSW Government says the First Steps Strategy, developed with Gudjagang Gulgul, the Aboriginal Early Childhood Education and Care Committee, supports all Aboriginal children across the state to access high-quality education, providing a strong foundation for lifelong learning and growth.

It says the Strategy provides a roadmap for improving education and wellbeing outcomes for Aboriginal children aged 0-5 with the aim of increasing the proportion of Aboriginal children enrolled in early childhood education to 95 per cent, and lifting the proportion of First Nations children developmentally on track to 55 per cent, as per the Closing the Gap agreement.

NSW Acting Minister for Education and Early Learning, Courtney Houssos, said the government is committed to increasing Aboriginal children's access to high quality, affordable early learning, "which we know provides children with the best start in life".

"This Budget invests in Aboriginal-led services, grows the Aboriginal workforce and supports children develop a strong foundation for lifelong learning and success," Ms Houssos said.

"This important announcement is extending the First Steps Strategy and expanding programs that are making a real difference to families and communities across the state."

This package also includes funding to support improved access, enrolment and attendance for Aboriginal children in public preschools, part of the government's 100 more public preschools to provide high quality early learning for up to 9,000 children across NSW by 2027.