The Inclusive Environments Funding was previously known as Minor Capital Works Funding.

1. Purpose and Objectives

These program guidelines (guidelines) provide an overview of the 2026 Inclusive Environments (IE) funding program. The IE funding program provides funding and support to enable children with disability or additional needs in not-for-profit community and mobile preschools (community preschools) to participate in a quality early childhood education program on the same basis as their peers. Additionally, the IE funding program supports quality uplift and ensures children have access to high quality early childhood education programs that drive improved outcomes. 

This document forms part of the 2026 Funding Agreement with Approved Funded Providers (providers) that is entered into with the NSW Department of Education (department).

IE funding promotes access and improves the learning, development and wellbeing of children with disability and additional needs in community preschools.

Funding is available for minor construction and specialised equipment or furniture that will enable children with disability and additional needs to participate in the educational program on the same basis as their peers.

The source agency for the funding is the department. The IE funding program is one of four related department grants under the Disability and Inclusion Program. 

These guidelines may be amended or replaced from time to time. Community preschool providers must comply with the current version of the guidelines. 

2. Funding

There are two types of IE funding:

• Child-based funding
• Service-based funding.
  

Information provided as part of funding applications may be used by the department for IE or similar funding in future years, for example where a community preschool has already received funding for an item or related activity or identifies future opportunities to support inclusion.The department will use the assessment criteria (see Section 7. Assessment criteria and feedback) to determine how funding will be provided and distributed for eligible IE applications.

Please note: Council approvals may be required for minor construction. Consultation with local councils is recommended prior to submitting an application for funding for minor construction under the Disability and Inclusion Program.

Community preschools should also ensure minor construction projects meet regulatory requirements prior to the submission of IE applications.

The program value is approximately $350,000 (ex GST).

2.1 Child-based funding

Child-based funding for a community preschool to support individual children with constant and ongoing support needs currently attending their service.

• Up to $5,000 (ex GST) per child per year (or per application, if the application is for more than one child) is available for specialised equipment/furniture.
• Up to $20,000 (ex GST) per child per year (or per application, if the application is for more than one child) is available for minor construction.

Funding will not be provided more than once for the same equipment/furniture or minor construction project. Funding requests for multiple equipment/furniture of the same type can be considered for other children in other applications.

It is no longer a requirement for the child/children to have an application approved for High Learning Support Needs (HLSN) funding. This change recognises that some preschools can include children with constant and ongoing support needs with environmental adjustments and may not need funding for an additional educator through the HLSN program.

Exceptional circumstances

Funding above $5,000 (ex GST) for highly specialised, individualised and essential equipment for an enrolled child with significant and complex needs may be considered under exceptional circumstances. The department may consider requests related to funding amount for eligible IE applications to a maximum amount of $20,000 (ex GST) per child per year (or per application if the application is for more than one child). Requests should be made in writing and emailed to ecec.funding@det.nsw.edu.au. All exceptional circumstances requests will be considered by the department on a case-by-case basis. Requests for funding above $5,000 (ex GST) to a maximum amount of $20,000 (ex GST) for highly specialised, individualised and essential equipment/furniture will only be approved under very limited and exceptional circumstances. Exceptional circumstances are like or related to the following which impacts the community preschool’s ability to fund the full cost of the equipment/furniture: the equipment/furniture is demonstrated to be highly specialised and individualised and is essential for the child’s access and participation in the educational program, and the community preschool is experiencing demonstrated financial hardship and is unable to fund the cost of the equipment/furniture. All other eligibility criteria must be fulfilled (see Sections 3 and 4).

2.2 Service-based funding

Service-based inclusion readiness funding for a community preschool to improve their capacity to include children with disability or additional needs in the future.

• Up to $5,000 (ex GST) per community preschool per year is available for specialised equipment/furniture or minor construction.

This funding does not need to be associated with an individual child, but will support inclusion readiness for the community preschool.

The department will notify community preschools who meet the eligibility criteria to apply for the service-based inclusion readiness funding (see in Section 3 below).

3. Service eligibility criteria

All IE funding is available only for community preschools who are receiving funding under the NSW Start Strong for Community Preschools or the Mobile Preschool Funding Program. In addition, to be eligible for the service-based inclusion readiness funding, the community preschool must:

• not have previously received HLSN or IE funding, under the current or equivalent earlier programs
• not have any children with disability recorded as attending the community preschool in the 2025 Annual Preschool Census or where applicable, an ad hoc data submission in 2025.

The department will not provide Inclusive Environments funding for places/hours in a service that are Child Care Subsidy approved. Inclusion funding and support for children in places/hours that are Child Care Subsidy approved, may be available from the Australian Government’s Inclusion Support Program.

The department reserves the right to pause or cease funding to any community preschool if the eligibility criteria is no longer met.

4. Child eligibility criteria

For child-based IE funding, the child/children must:

• be at least 3 years old on or before 31 July in that preschool; or
• turn 3 years old after 31 July in that preschool year and demonstrate exceptional circumstances. Exceptional circumstances are like or related to the following circumstances: any child or family that experiences out-of-home or alternative care arrangements, isolation, violence, trauma, mental health issues, environmental disasters or other crises, and
• either have:
  • constant and ongoing support needs and require significant adjustments to enable them to engage with the educational program on the same basis as their peers, or
  • a temporary illness or injury that requires short term adjustment to enable participation in the educational program on the same basis as their peers.

Applications are specific to individual or multiple children. An application can include inclusive environment requirements for multiple children, where the environment adjustment/equipment/furniture relates to more than one child.

It is no longer a requirement for the child/children to have an application approved for HLSN funding. This change recognises that some community preschools can include children with constant and ongoing support needs with environmental adjustments and may not need an additional educator funded under the HLSN program.

The department does not take citizenship and residency status of the child/children into consideration to determine eligibility for funding under the IE funding program.

5. How to apply

Both types of applications are made in the Early Childhood Contract Management System (ECCMS). Applications can only be made by appropriate staff members of the community preschool or the service provider.

Where applications are submitted that exceed the available grant amount, applicants are required to confirm that they can fund the difference.

If circumstances change, and a preschool cannot fund the difference, they must notify the department. In such circumstances, the grant must be returned to the department in full, unless expenditure is otherwise agreed by both parties and approved by the department in writing. Decisions will be made on a case-by-case basis, applying the assessment criteria (see Section 8. Spending rules).

The department encourages community preschools to regularly review the details of their primary and alternate contacts listed in ECCMS.

Child-based applications for funding to support the child/children currently attending the service (Child-based Applications) require:

• a description of the child/children’s learning and developmental needs and any disability
• a description of the essential minor construction and/or specialised equipment/furniture that are required to enable the child/ children to access, and participate in, the educational program
• if applying for specialised equipment/furniture, supporting evidence from specialised professionals recommending the specialised equipment/furniture
• a description of how the minor construction and/or specialised equipment/furniture are linked to/will deliver outcomes specified in a child/children’s Individual Learning Plan (ILP)
• an itemised quote/s clearly indicating the breakdown of costs excluding GST, and freight components where applicable. Where GST is not clearly indicated, the department will assume that GST is included in the cost and will subtract this amount from the total amount
• if applying for specialised equipment or furniture
  • photocopies or sample pictures from catalogues to support your application
  • a declaration confirming sufficient space for equipment/furniture to be installed and used safely.

Service-based applications for funding to enable a community preschool to improve their capacity to include children with disability or additional needs in the future (Inclusion Readiness IE Applications) require:

• a description of specialised equipment/furniture or minor construction that would enable a child/children with disability or additional needs to access, and participate in, the educational program
• an itemised quote/s clearly indicating the breakdown of costs excluding GST. Where GST is not clearly indicated, the department will assume that GST is included in the cost and will subtract this amount from the total amount
• photocopies or sample pictures from catalogues to support your application
• a declaration confirming sufficient space for equipment/furniture to be installed and used safely.

5.1 Consent forms

Under the applicable Funding Agreement Terms and Conditions, community preschools are required to facilitate the signing of two types of consent forms, namely, one for each staff member and one for each child upon enrolment. These forms enable consent to the use and disclosure of personal and health information by the department for reporting and funding purposes.

Providers must seek a renewal of a child consent form every year the child attends its community preschool. A new form should be completed if any of the details in the original consent form require an update or adjustment.

Provided the child consent form has been completed for each child, additional forms of parent/carer consent are not required for any related grants under the Disability and Inclusion Program. Community preschools are strongly encouraged to maintain ongoing dialogue with families regarding the submission of IE funding applications and the development and adjustment needs of individual children.

Consent forms are available for download:

• Consent Form - Child (PDF 167 KB)
• Consent Form - Personnel (PDF 234 KB)

Records of consent forms must be kept securely by the community preschool, along with documentary evidence of the child’s disability and/or additional needs. It is not a requirement for consent forms to be uploaded with a child’s application in ECCMS. However, the department will conduct compliance checks as part of its auditing process. As such approved providers are required to retain declaration and consent forms for this purpose as per Section 9. Financial accountabilities and funding compliance of these guidelines.

5.2 Corrections and previously ineligible applications 

In certain circumstances corrections to submitted applications, which have not yet been assessed, may be made. A provider wishing to make corrections or add information to their applications should make a request to the department. The department will then assess that request and may return the submitted application to ‘draft’ for re-editing and re-submission. 

Applications that have previously been assessed as ineligible cannot be edited and resubmitted in ECCMS. A new application should be submitted when new or updated information becomes available. 

6. Application opening, closing and outcome dates

The opening date for applications is 3 November 2025. The following other key dates (including application outcome dates) also apply. There are specific exceptional circumstances where the closing dates may be different, set out below.  

* Funding for eligible applications will be paid in December 2026 and must be spent within the calendar year.

Application cut-off dates are subject to change. The department will notfiy community preschools via email of any changes to these dates.

Exceptional circumstances for an extended cut-off date

The department may consider requests related to the extension of time for submission of IE funding applications. Requests should be made in writing and emailed to ecec.funding@det.nsw.edu.au. All extension requests will be considered by the department on a case-by-case basis. Extensions will only be approved under limited and exceptional circumstances. Exceptional circumstances are like, or, related to the following circumstances which impact the community preschool’s ability to submit the application by the relevant cut-off date due to demonstrated reasons beyond its control: environmental disaster, staff absence due to illness or inability to access ECCMS.

Note IE funding may not be applied retrospectively. See Section 8. Spending rules for more information.

7. Assessment criteria and feedback

The department’s assessment team will individually assess all IE applications against the eligibility criteria and assessment requirements as outlined in the guidelines.

The assessment panel consists of Department of Education employees, equivalent to Grade 7/8 Program or Project Officer level or above. Panel members are appointed based on their expertise and experience in the ECEC sector and inclusive education.

If there is any missing or unclear information, services may be contacted with the opportunity to provide additional information. This will be done on a case-by-case basis.

Once assessed, the recommendations are made in writing for approval by the relevant delegates of authority as the decision-maker. Funding is approved in line with financial delegations within the department’s Early Childhood Outcomes division. This means, depending on the grant value, funding may be approved by the Manager of Disability & Inclusion, the Director, Equity & Inclusion, Executive Director, Quality, Participation and Connections or Deputy Secretary, Early Childhood Outcomes.

Child-based Applications are assessed according to all the following criteria:

• the applicant’s proposed project will support or improve the access and participation, as well as learning and developmental outcomes of the child/children identified in the application
• the proposed project is the most economical and effective way to meet the educational needs of the child/children identified in the application
• the submitted descriptions, evidence (including from specialised professionals, if relevant), itemised quote/s and declaration confirming sufficient space demonstrate the eligibility criteria (see Sections 2, 4 and 5) are all met.

Inclusion Readiness IE Applications are assessed according to all the following criteria:

• the community preschool not previously having received HLSN or IE funding (under current or equivalent earlier programs) and not having any children with disability recorded as attending the community preschool in the 2025 Annual Preschool Census or where applicable, an ad hoc data submission in 2025
• how the applicant’s proposed project will support or improve the community preschool’s capacity to increase access and participation of children with disability or additional needs in the future
• how the proposed project is the most economical and effective way to improve the community preschool’s capacity to include children with disability or additional needs in the future
• the submitted descriptions, itemised quote/s, photocopies or sample pictures and declaration confirming sufficient space demonstrate the eligibility criteria (see Sections 2, 3, 4 and 5) are all met.

Feedback on the outcome of a funding application is provided via email to the providers of community preschools that submit an application. Further feedback can be sought from the assessment team by emailing ecec.funding@det.nsw.edu.au and providing the following information:

• IE application ID
• community preschool’s name
• contact person at the preschool and contact phone number
• the question/s you have about the application.

Once you have provided this information, a member of the assessment or program team will contact you to discuss your application.

Information about community preschools who are successfully awarded funding under the IE funding program will be made available on the NSW Government Grants and Funding Finder as required.

The publication of information will comply with any legal requirements under the Privacy and Personal Information Protection Act 1998 (NSW) (PPIP Act), the Health Records and Information Privacy Act 2002 (NSW) (HRIP Act); and other statutory requirements.

8. Spending rules

IE funding allocations are to be expended in 2026. Funding is not to be applied retrospectively or carried over to the following calendar year.

As per Regulation 103 of the Education and Care Services National Regulations community preschools must ensure all equipment and furniture successfully funded under this program will be optimally maintained.

For Child-based Applications, up to $20,000 (ex GST) per child per year (or per application, if the application is for more than one child) can be used for minor construction projects, such as the erection, alteration or extension of buildings or other facilities including outside developments. This includes conversion of buildings or facilities to alternative uses or their upgrading to modern standards, but does not include maintenance work. Examples of projects funded previously include:

• access pathways to promote physical access for children with disability and additional needs attending a community preschool
• modifications to bathroom facilities for children with disability and additional needs
• modifications to playground facilities for children with disability and additional needs
• construction of ramps for children with disability and additional needs.

For Child-based Applications and Inclusion Readiness IE Applications, up to $5,000 (ex GST) per child per year OR per community preschool per year can be used for, the provision of specialised equipment or specialised furniture (specialised equipment, specialised furniture or minor construction for Inclusion Readiness IE applications). That is, equipment or furniture or minor construction that supports the child’s attendance in an early childhood setting only. Examples of projects that may be considered include:

• standing frames and seating equipment
• grab rails and toilet rail surrounds
• hydraulic change tables
• modification of a doorway to improve accessibility.

Funds are not available for:

• retrospective assistance. In this instance, an application is considered to be retrospective if the organisation enters into a commitment (for example, signs a contract) prior to applying. The community preschool is able to commit to purchase of equipment, furniture or to minor construction after submitting an IE application and prior to notification of eligibility, however, if the application is assessed as ineligible and funding is not approved, any costs incurred for the purchase of this equipment, furniture or for minor construction will be the community preschool’s responsibility only.
• general refurbishment
• projects where the purpose is satisfying government/legal requirements for children’s services, e.g. fencing requirements and modifications to fencing, modifications to allow for the supervision of children
• the modification of space to create segregated playrooms or therapy rooms
• generic early childhood equipment, non-specialised gross motor equipment, and therapy and sensory equipment
• teachers’ resources
• the establishment or upgrade of an equipment loaning service
• digital cameras, video cameras, computers and IT equipment
• photocopiers, fax machines and office equipment
• segregated bathrooms and change areas for children with disability and additional needs
• segregated playground areas and equipment.

To align with the 7 Quality Areas of National Quality Standards (NQS), all IE funding program spending should directly support the delivery of high-quality early childhood education and care, ensuring that every expenditure contributes to ongoing service improvement and positive outcomes for children.  

9. Financial accountabilities and funding compliance

In accordance with the applicable Terms and Conditions, a provider must submit a financial accountability statement for each individual community preschool which has received funding, to provide assurance that public funds have been expended for their intended purpose and in accordance with these program guidelines.

This is completed through ECCMS and providers will be notified when this is due. Further information is available in the Financial Accountability Return Guide and on the Financial Accountability - Information for Services page.

Surplus and Refunds

Providers are required to spend all IE funding in accordance with the spending rules during the relevant program period (see Section 8. Spending rules). Some providers may have unspent funds (unexpended funds) at the end of their reporting period, and this needs to be returned to the department in accordance with the Terms and Conditions. The department will identify and review unspent funds through the annual financial accountability process.

The financial accountability process for the 2026 funding allocation will be undertaken in 2027. The process involves completing a financial accountability statement to report to the department how funding has been spent in accordance with the spending rules of these guidelines. Financial accountability statements are completed at service level. Providers with surplus funds may be contacted by the department requiring repayment of funds.

Record keeping

The department periodically conducts reviews of community preschools and funding distributed to providers. For this purpose, the department may request that providers supply supporting documentation to the department and its representatives, which must be supplied.

Community preschools may be reviewed to confirm the accuracy of data provided in their performance and financial accountability statements, to ensure that the funding provided has been used to support the objectives of this IE program.

All relevant records must be retained by providers for the purpose of the department undertaking funding compliance reviews.

Examples of relevant records include:

• proof of expenditure in line with spending rules
• parent/legal guardian declaration forms
• enrolment and consent forms
• documentary evidence of the child’s disability and/or additional needs
• Individual Learning Plans (ILP) for children with disability or additional needs.

Review and Evaluation

These guidelines may be updated or amended over the course of the annual program. This will be in response to continuous program improvement or where further clarity is required. Changes to the guidelines may be made in consultation with the sector, but remain at the discretion of the department. Any changes will be communicated to the sector.

The department may undertake an evaluation to understand the effectiveness of the 2026 IE program. Providers may be required to participate in an evaluation of the program through the provision of data and participation in other evaluation activities.

10. Application support

Under the Disability and Inclusion Program, Sector Capacity Building (SCB) providers are available to all community preschools to support the delivery of inclusive education practices and enhance inclusion readiness. At the time of these guidelines’ publication, the department’s SCB program is in place until 30 June 2026.

SCB providers can help preschool staff apply for IE funding. Preschools are encouraged to contact their SCB provider for support or to contact the department if they do not have the contact details of their SCB provider.

Community preschools are encouraged to contact their contracted SCB provider for support before 30 June 2026 or to contact the department if they do not have the contact details of their contracted SCB provider. The contact details for SCB providers can also be found in the 2025-2026 Sector Capacity Building program page. 

Section 7. Assessment criteria and feedback above also outlines certain feedback that is available when an initial application has been assessed as ineligible.

11. Further information

11.1 Conflict of interest management

The department is required to consider and manage any conflicts of interest that may arise throughout all stages of the funding process. This includes any actual, perceived or potential conflicts that are identified.

All providers are required to disclose to the department any actual, potential, or perceived conflicts of interest in their application which relate to their application. A conflict of interest must also be disclosed during the implementation of a program if it arises. Conflicts of interest may relate to partnerships, third party service provisions, contractors, relationships of staff employed as a direct result of the funded program or other aspects. Further detail about how to disclose a conflict of interest can be provided on request.

11.2 Disability Discrimination Act 1992

The department encourages preschools to ensure that they are aware of their obligations under the Disability Discrimination Act 1992 (the Act). Further information on the Act is available from the ACECQA website. The department also encourages community preschools to seek support from their SCB provider to explore how barriers to inclusion may be removed or adjusted without additional funding. See Section 10. Application support for further information on SCB providers.

11.3 Contact details

For further information about early childhood education programs, please contact the department by:

• calling 1800 619 113
• emailing ecec.funding@det.nsw.edu.au
• Right to Access (incl. GIPA) – Agency Information Guide

11.4. Feedback

We like to hear when things have gone well so we can continue to provide more positive experiences. Community preschools who have feedback, suggestions or complaints about the application and assessment process should contact the department at ecec.funding@det.nsw.edu.au.

Alternatively, you may: 

• Complete the NSW Department of Education Complaint, compliment or suggestion form. 
• Call 1800 619 113.