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 (FNO) organisations, or in partnership with them.
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.
Funded projects are expected to trial new or expanded approaches that:
- improve Aboriginal students' access, engagement and participation in training
- strengthen culturally responsive and supportive training environments
- support pathways to employment and further skills development
- build the capability of ACCOs and FNO organisations to deliver training and student support services.
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.