Treasurer Dominic Perrottet has given assurances that New South Wales won't follow the Federal Government and end free preschool at State Government-funded centres next month.
He said the main reason was to help women retain jobs or re-enter the workforce.
"We'll be tailoring a lot of our policies to make sure there's as much support as possible for women to maintain employment," he told the Committee for Economic Development of Australia.
The Treasurer has pointed to concerning reports that young women have been particularly impacted by job losses as a result of COVID-19.
In April, the State Government committed $51 million so the 700 community preschools it funds could waive fees for parents, after the Federal Government announced its free childcare scheme.
The Federal Government has announced its scheme will wind up on July 12, but NSW will keep its funding going until at least the end of September.
That's despite the State Government forecasting between $10 to $20 billion being slashed from its revenue, with significant write downs over the next four years.
"Prior to the pandemic, it had women's participation in the workforce which had been a driving force for our economy and we want to make sure that continues," he said.
He insists that's why keeping the preschool subsidy in place for now, "is a key focus".
The Treasurer also said the pandemic had provided an "real opportunity" to give greater "flexibility" to working parents.
"We want to make sure that working mothers can combine family life … with work opportunities," he said.
State Government-funded community preschools provide care to 45,000 three to five year olds.
