The $50 million plan will see preschool free for all ages in the state.
Berejiklian said the state government realised “household budgets are under pressure”.
The state government will also spend $82 million on local government-operated childcare, to supplement the funding already committed by the federal government.
“We’re stepping up and paying the other half that means child care centres run by local governments don’t have to worry about the additional cost of keeping staff on and providing the vital services,” the Premier said.
Is comes as NSW reported an additional 39 cases of coronavirus overnight, bringing the total number of confirmed cases in the state to 2773.
The 39 new cases represent the lowest daily count since March 16.
There are 221 cases being treated in NSW.
This includes 31 cases in intensive care units, and 21 of these require ventilators.
There have been 12 new cases at Gosford hospital including two patients and six staff and four family/friend cases.
The affected ward was closed yesterday and community contact tracing is ongoing.
Of the 161 symptomatic travellers quarantined in hotels, 36 have tested positive.