This paper discusses the individual, family, household and area level characteristics associated with preschool attendance for Indigenous and non-Indigenous Australians (aged three to five years who are not at school). Controlling for these factors explains all of the difference between Indigenous and non-Indigenous attendance rates for three-year-olds and much of the difference for four- and five-year-olds. Households Indigenous children live in have lower incomes and education levels than those of non-Indigenous children. Both factors are associated with lower attendance in preschool. State and territory, as well as remoteness, are also important explanatory variables, although the effects are different for Indigenous and non-Indigenous children. Finally, having a preschool worker who identifies as being Indigenous working in the area significantly increases attendance for Indigenous children in that area. However, fewer than 30 per cent of Indigenous children live in such areas. (Contains 3 tables.)