The Inclusive Environments Funding was previously Minor Capital Works Funding.

1. Aim

These guidelines provide an overview of the 2025 Inclusive Environments (IE) Funding program. The IE funding program is one of the four components of the Disability and Inclusion Program, which 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. This document forms part of the 2025 Funding Agreement with Approved Funded Providers (providers).

These guidelines may be amended or replaced by the Department of Education (the department) from time to time. Providers must comply with the current version of the guidelines, available on the department’s website.

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 environmental modifications 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.

2. Funding

There are two types of IE funding:

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 is available for specialised equipment/furniture.
• Up to $20,000 (ex GST) per child per year is available for environmental modification projects.

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.

Please note: Council approvals may be required for environmental modifications. Consultation with local councils is recommended prior to submitting an application for environmental modifications through the Disability and Inclusion Program.

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 environmental modifications.

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

Information provided as part of funding applications may be used by the department for the purpose of assessing the eligibility of a community preschool and/or child for IE funding in future years, for example where a service has already received funding for an item or related activity or identifies future opportunities to support inclusion.

The department will use its discretion to determine how funding will be provided and distributed for eligible IE applications.

3. Service eligibility criteria

This 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
• not have any children with disability recorded as attending the service in the 2024 Annual Preschool Census or where applicable, an ad hoc data submission in 2024.

4. Child eligibility criteria

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

• be at least 3 years old on or before 31 July 2025
• 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
• have 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.

5. How to apply

Both types of applications are made in the Early Childhood Contract Management System (ECCMS).

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

• a description of the child/children’s learning and developmental needs and any disability
• a description of the essential environmental modifications 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 environmental modifications and/or specialised equipment/furniture are linked to/will deliver outcomes specified in the child/children’s Individual Learning Plan (ILP)
• 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
• 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 require:

• a description of specialised equipment/furniture or environmental modifications 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.

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. These decisions will be made on a case-by-case basis.

5.1 Consent

Under the 2025 Early Childhood Education and Care Funding Agreement Terms and Conditions (Terms and Conditions) in ECCMS, community preschools are required to facilitate the signing of the two types of consent forms, one for each staff member and one for each child upon enrolment. This form consents to the use and disclosure of personal information by the department for reporting and funding purposes.

You must seek a renewal of the consent form every year the child attends. 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 the Disability and Inclusion Program. However, 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.

Child and personnel consent forms will be available shortly.

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.

6. Application and payment dates

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

Application cut-off dates are subject to change. The department will notify community preschools via email of any changes to these dates. Payments can also be made on an ad hoc basis as determined by the department.

7. Assessment 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.

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, as required.

Once assessed, recommendations are made in writing for approval by the relevant delegates of authority as the decision-maker. The designated decision-maker and approval of payments are of the Minister's powers under the Government Sector Finance Act 2018 (GSF Act) Act unless otherwise stated.

Child-based IE applications are assessed according to the following criteria:

• the degree to which the 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 extent to which the proposed project is the most economical and effective way to meet the educational needs of the child/children identified in the application
• whether relevant authorities and the community have been consulted where required. For example, environmental modifications that require council approvals.

Inclusion Readiness IE applications are assessed according to the following criteria:

• the community preschool not previously receiving HLSN or IE funding and not having any children with disability recorded as attending the service in the 2024 Annual Preschool Census or where applicable, an ad hoc data submission in 2024.
• the degree to which the 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
• the extent to which 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.

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

Once you have provided this following information, a member of the assessment team will contact you within 7– 10 business days to discuss your application.

Relevant information about eligible IE applications may be made available on the NSW Government Grants and Funding Finder, after notification of outcome and payments are made to providers.

The publication of eligible applications 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 any other statutory requirements.

8. Spending rules

IE funding allocations are to be expended in the calendar year for which funding has been provided. 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 will 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 can be used for, 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
• modifications to playground facilities
• construction of ramps.

For child-based and service-based inclusion readiness 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 or environmental modifications. That is, equipment or furniture or environmental modifications 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
• general refurbishment
• projects where the purpose is satisfying government requirements for children’s services
• 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.

9. Financial accountabilities and funding compliance

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

Financial accountability 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 expend all IE funding in accordance with the spending rules during the relevant program period. The department understands that some providers may have a surplus at the end of their reporting period which needs to be returned to the department according to the terms and conditions. The department will identify and validate surpluses through the annual financial accountability process.

The financial accountability process for any funding allocation will be undertaken in the following year after the reporting year is finished. 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 invoiced by the department requesting repayment of funds.

The department will review these guidelines annually to ensure alignment with program funding objectives.

Record keeping

The department periodically conducts reviews of community preschool services and funding distributed to providers. For this purpose, the department may request that providers supply supporting documentation to the department and its representatives.

Community preschools may be audited to confirm the accuracy of data provided in their performance and financial accountability statements, which includes ensuring that the funding provided has been used to support the achievement of educational outcomes for children with disability in accordance with these guidelines.

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

Examples of relevant records may 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 working towards 600 hours per year.

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 IE program. Providers may be requested to participate in an evaluation of the program through the provision of data and participation in other evaluation activities as required.

The department will make sure that any work with providers to enhance early childhood education programs aligns with quality expectations outlined under the National Quality Framework.

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.

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.

11. Further information

11.1 Conflict of interest management

The department are 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 any actual, potential, or perceived conflicts of interest in their application which relate to their intended program, if funded. 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, 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 Sector Capacity Building provider to explore how barriers to inclusion may be removed or adjusted without additional funding.

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. Services and providers can provide suggestions, concerns or feedback about us to the regulatory authority, including complaints about the conduct of our staff, by following one of the steps below:

• Complete the Department of Education  Complaint, compliment or suggestion form
• Call 1800 619 113
• Email ececd@det.nsw.edu.au