Innovation Fund CtG Grant Round 2

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This is a preview of the Closing the Gap - Round 2 Innovation Fund (ACCO and FNO RTO) form. When you’re ready to apply, click Fill Out Now to begin.
 

About the grant

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Innovation Fund Round 2

Please ensure you have read the Innovation Fund Round 2 Grant guidelines (November 2026)  and Frequently Asked Questions (FAQs) document prior to applying for the Innovation Fund Round 2.

Innovation Fund Round 2 Grant guidelines (November 2026): INNOVATION FUND - ROUND 2 GUIDELINES

Innovation Fund Round 2 FAQs: INNOVATION FUND ROUND 2 FAQs

 

Background

The Closing the Gap (CTG) Innovation Fund is a grant program established under the National Skills Agreement (NSA) Implementation Plan for Closing the Gap, agreed between the Australian Government and NSW in November 2025.

The program is administered by the NSW Department of Education (the department) and supports place-based, innovative initiatives led by Aboriginal Community Controlled Organisations (ACCOs) and First Nations Owned Registered Training Organisations (FNO RTO), or in partnership with these organisations.

The Innovation Fund is designed to support the delivery of culturally responsive training environments for Aboriginal students and to improve their access to, participation in, and completion of skills development and training pathways.

The program also aims to strengthen the capacity, sustainability and growth of the ACCOs training sector by enabling innovative, community-led, culturally responsive approaches to skills development and employment pathways.

This grant is open to ACCOs and FNO RTOs that have not been invited and are not eligible to participate in the Growth and Sustainability Fund and Innovation Grants. Conversely, Aboriginal Community Controlled (ACC) RTOs invited to participate in the Growth and Sustainability and Innovation Grant are not eligible to apply for funding under this grant.

Funded projects are expected to:

 

  • improve access to culturally responsive skills development and training for Aboriginal students
  • strengthen the capacity and capability of ACCO and FNO RTO organisations
  • increase Aboriginal students’ participation, retention and completion in training
  • support clear and sustainable post-school pathways to further training into employment
  • enable innovative, community-led, culturally responsive and place-based solutions.

Round 2 will prioritise initiatives that strengthen post-school pathways into training or employment in at least one of these critical skill areas:

  • advanced manufacturing
  • agriculture and agrifood
  • care and support economy
  • construction
  • digital and cyber security
  • net zero

This grant program has funding available through to December 2028.

These Closing the Gap Stage 2 Innovation Fund Grant Guidelines (the Guidelines) apply to Round 2 of the Innovation Fund. Applicants should read the Guidelines in full to understand the eligibility requirements, assessment criteria and application process before submitting an application.

 

This grant program has funding available through to December 2028.

COMPETITIVE GRANT PROCESS

The Innovation Fund follows a transparent assessment process consisting of two stages.

This structure ensures that we identify concepts with the highest potential for impact before working collaboratively to refine them for delivery

Stage 1 - Application, initial proposal submitted and eligibility and capability check (open and competitive

In the first stage, applications are reviewed by an independent assessment panel to ensure the proposal meets the foundational requirements of the fund. 

  • Eligibility review: All applications will first be assessed against the eligibility criteria, including applicant and project eligibility. Applications that meet eligibility requirements will then be assessed against the assessment criteria. 
  • Assessment criteria evaluation: The panel will evaluate eligible applications against the assessment criteria. Eligible applications will be assessed by an assessment panel, which will include representatives from NSW Government agencies. The panel may also seek input from subject matter experts, where required. The process will be supported by an independent probity advisor. 
  • Outcome: Recommended applicants will be invited to participate in the Stage 2 co-design phase

Stage 2 - Co-design and final funding approvals (targeted and closed) 

This is a collaborative co-design process focused on refining project and funding details and finalising funding deeds for successful proposals. Stage 2 is targeted and non-competitive and only applicants invited from Stage 1 will be able to participate in this Stage 2. 

  • Joint development: This stage ensures proposals are robust and clearly aligned with desired CTG outcomes and reporting requirements. 
  • Refining details: Both the department and your organisation will work to develop and refine the project scope, milestones, and reporting. This phase is used to determine the recommended amount of funding within the allocated budget. 
  • Final execution: Approval for the projects and funding will include the assessment panel and department executives. he successful completion of this phase results in the execution of a formal funding deed. Please note that projects that cannot meet the agreed expectations for deliverables may not proceed to a final deed. 

Program purpose and objectives

The purpose of the Innovation Fund is to support delivery of the NSA CTG Implementation Plan by funding innovative, place-based initiatives that improve outcomes for Aboriginal students.

The Innovation Fund aligns with and supports the following NSW Government priorities:

  • NSW Closing the Gap Priority Reforms, including:
  • Priority Reform 1: Formal partnerships and shared decision-making
  • Priority Reform 2: Strengthening the community-controlled sector
  • NSW Closing the Gap targets relating to education, training and employment outcomes
  • NSW Skills Plan 2024-28: Building Skills and Shaping success priorities.

The objectives of the program are to:

  • improve access to culturally responsive skills development and training for Aboriginal students
  • strengthen the capability, sustainability and growth of ACC and FNO organisations
  • increase Aboriginal students’ participation, retention and completion in training
  • support clear and sustainable pathways from training into employment
  • enable innovative, community-led, culturally responsive and place-based solutions.

Who can apply for the Grant?

To be eligible you must:

  • be an Aboriginal Community Controlled or First Nations Owned organisation, including ACC or FNO Registered Training Organisations
  • be an Australian legal entity with ABN/ACN
  • be currently operating in NSW
  • have the legal capacity to enter into a funding agreement with the NSW Government
  • demonstrate the capacity and capability to deliver the proposed project
  • deliver services supporting Aboriginal students.

For partnerships (where applications involve multiple organisations):

  • The lead applicant must be ACC or FNO organisation.
  • The lead applicant will be responsible for entering into the funding agreement and meeting all reporting requirements.
  • Partnerships must demonstrate clear roles.

Applicants must provide evidence of eligibility, which may include:

  • incorporation and governance documents
  • evidence of Aboriginal ownership or control
  • letters of support from community or partners.

Eligible projects

To be eligible, projects must be delivered in NSW and to NSW students, and:

  • align with the objectives of the Innovation Fund, CTG and NSA priorities for NSW
  • improve access to, participation in or completion of training for Aboriginal students in the vocational education and training sector
  • support the delivery of culturally responsive training environments for Aboriginal students
  • demonstrate engagement with Aboriginal communities.

Examples of eligible projects include but are not limited to:

  • culturally responsive mentoring and career advice
  • accredited and non-accredited training or pathway, skills development (including foundation skills)
  • employability skills development programs for Aboriginal people.

Ineligible projects

Projects will not be considered if they:

  • are not led by an ACC or FNO organisation
  • do not align with the objectives of the Innovation Fund
  • duplicate existing NSW Government-funded programs (including Smart & Skilled and other CTG initiatives)
  • request funding for business-as-usual activities
  • include retrospective costs or activities already completed
  • relate to major capital/infrastructure projects.

 Evidence Requirements

Applicants must provide sufficient evidence to demonstrate that they meet the eligibility criteria. The minimum evidence requirements are outlined in the Innovation Fund CtG Guidelines. The department may ask for additional evidence at any time to support the application. 

 

Disclaimer

The Applicant acknowledges and agrees that:

  • submission of this application does not guarantee funding will be granted for any project, and the Department expressly reserves its right to accept or reject this application at its discretion;
  • it must bear the costs of preparing and submitting this application and the Department does not accept any liability for such costs, whether or not this application is ultimately accepted or rejected; and
  • it has read the Funding Guidelines for the Program and has fully informed itself of the relevant program requirements.

Use of Information

By submitting this application form, the Applicant acknowledges and agrees that:

  • if this project application is successful, the relevant details of the project will be made public, including details such as the names of the organisation (Applicant) and any partnering organisation (state government agency or non-government organisation), project title, project description, location, anticipated time for completion and amount awarded;
  • the Department will use reasonable endeavours to ensure that any information received in or in respect of this application which is clearly marked ‘Commercial-in-confidence’ or ‘Confidential’ is treated as confidential, however, such documents will remain subject to the Government Information (Public Access) Act 2009 (NSW) (GIPA Act); and
  • in some circumstances the Department may release information contained in this application form and other relevant information in relation to this application in response to a request lodged under the GIPA Act or otherwise as required or permitted by law.

Privacy Notice

By submitting this Application form, the Applicant acknowledges and agrees that:

  • the Department is required to comply with the Privacy and Personal Information Protection Act 1998 (NSW) (the Privacy Act) and that any personal information (as defined by the Privacy Act) collected by the Department in relation to the program will be handled in accordance with the Privacy Act and its privacy policy (available at: https://www.dpc.nsw.gov.au/privacy);
  • the information it provides to the Department in connection with this application will be collected and stored on a database and will only be used for the purposes for which it was collected (including, where necessary, being disclosed to other Government agencies in connection with the assessment of the merits of an application) or as otherwise permitted by the Privacy Act;
  • it has taken steps to ensure that any person whose personal information (as defined by the Privacy Act) is included in this application has consented to the fact that the Department and other Government agencies may be supplied with that personal information, and has been made aware of the purposes for which it has been collected and may be used.

Eligibility Confirmation

I confirm that I have read and understood the CTG Innovation Fund Round 2 Grant Guidelines and meet the Eligibility criteria set out in the Grant Guidelines * Required
Applicants can only proceed if they select 'Agreed'