Billions will be spent in the next decade to break down barriers for working women in NSW, giving them access to cheaper, better-quality childcare.
The NSW government has passed legislation creating a $5 billion fund to increase access to quality, affordable childcare in well-known 'childcare deserts' across the state.
Places will be created in Sydney's west, southwest and regional NSW - where there is less than one childcare placement for every three children.
Legislation to create the fund passed the NSW parliament on Tuesday, after being introduced by Treasurer Matt Kean last month.
"These landmark reforms will help create new places in childcare deserts for parents who face the highest disincentives to work," Mr Kean said.
The fund will quarantine the money to be used in the next 10 years to build childcare centres where they are needed most.
"The reforms would help boost women's economic security as it helped give working mums better, more affordable access to childcare," the treasurer said.
Minister for Women Bronnie Taylor said the fund would give more women the choice to re-enter the workforce when they chose - leaving them less likely to miss out on superannuation and other professional opportunities.
"This fund will help close the gender workforce participation gap by up to 14 per cent within a decade and give more women the genuine choice to re-enter the workforce when they want," she said.
Early Learning Minister Sarah Mitchell said the government would consider various options to address the childcare gaps, including building new wings at existing centres and creating centres within hospitals or other facilities.
The majority of operators in the state were small business owners who ran only a single centre, she said.
