Up to $20,000 available to support inclusive environments in NSW community preschools

Eligible NSW community and mobile preschools can access up to $20,000 to make environmental modifications that support children with disability and additional needs, with the final child-based application round for 2026 closing in October.

The NSW Department of Education's 2026 Inclusive Environments (IE) Funding Program provides funding for minor construction, specialised equipment and furniture designed to enable children with disability and additional needs to participate in quality early childhood education on the same basis as their peers.

Previously known as Minor Capital Works Funding, the program forms part of the Department's broader Disability and Inclusion Program and has an approximate total program value of $350,000 excluding GST.

For eligible services yet to access funding this year, child-based applications for the final adjustment round must be submitted by 5pm Friday 16 October 2026, with payments for successful applications expected by 4 December.

Inclusive Environments funding is specifically available to eligible not-for-profit community preschools receiving funding through the Start Strong for Community Preschools program or the Mobile Preschool Funding Program.

Importantly, the funding does not apply to places or hours within a service that are approved for the Child Care Subsidy.

For children occupying CCS-approved places or hours, inclusion funding may instead be available through the Australian Government's Inclusion Support Program.

Under the child-based funding stream, children must generally be at least three years old on or before 31 July in the relevant preschool year.

Children who turn three after 31 July may also be eligible where exceptional circumstances apply, including circumstances associated with out-of-home or alternative care, isolation, violence, trauma, mental health issues, environmental disasters or other crises.

Eligible children must have either constant and ongoing support needs requiring significant adjustments to participate in the educational program, or a temporary illness or injury requiring short-term adjustments.

Eligible community preschools can apply for up to $20,000 excluding GST per child per year, or per application where an application relates to more than one child, for minor construction.

Projects can include:

• accessible pathways to improve physical access
• modifications to bathroom facilities
• modifications to playground facilities
• construction of ramps
• alterations or upgrades to existing buildings or facilities that improve children's access and participation.

The funding is intended to remove environmental barriers that prevent or limit a child's participation in the educational program.

It cannot be used for general maintenance or refurbishment.

Services can also apply for up to $5,000 excluding GST per child per year for specialised equipment or furniture.

Examples identified by the Department include standing frames and seating equipment, grab rails and toilet rail surrounds, hydraulic change tables and doorway modifications that improve accessibility.

In limited exceptional circumstances, funding above $5,000 and up to a maximum of $20,000 may be considered for highly specialised, individualised and essential equipment or furniture for an enrolled child with significant and complex needs.

These applications are considered individually and require services to demonstrate why the equipment is essential and why the preschool cannot meet the full cost.

One significant feature of the 2026 program is that a child no longer needs to have an approved High Learning Support Needs (HLSN) funding application to be eligible for child-based Inclusive Environments funding.

The Department said the change recognises that some community preschools can successfully include children with constant and ongoing support needs through environmental adjustments without requiring funding for an additional educator through the HLSN program.

This potentially gives services greater flexibility to consider how changes to the physical environment itself can support participation and inclusion.

The program also includes service-based Inclusion Readiness funding, although the 2026 application cut-off for this stream has already passed.

Under this component, eligible community preschools could access up to $5,000 to improve their capacity to include children with disability or additional needs in the future.

Unlike child-based funding, Inclusion Readiness funding does not need to be attached to an individual child.

The approach reflects a broader shift towards services proactively considering barriers to participation before a child requiring adjustments enrols, rather than waiting until an individual need arises.

Inclusive Environments is one of four grants delivered through the NSW Disability and Inclusion Program.

The program is intended to complement rather than replace the National Disability Insurance Scheme (NDIS).

While the NDIS supports eligible children with individual functional needs, Inclusive Environments funding focuses on the educational environment and the adjustments required to support access and participation in preschool.

The program's objectives include improving access, learning, development and wellbeing for children with disability and additional needs, while building the capacity of the community preschool sector to provide inclusive education.

Applications are made through the Early Childhood Contract Management System (ECCMS) and must be submitted by an appropriate staff member of the preschool or approved provider.

For child-based applications, services need to provide information including:

• a description of the child's learning and developmental needs and any disability
• details of the construction, specialised equipment or furniture required
• an explanation of how the proposed adjustment will support access and participation
• links between the proposed adjustment and outcomes in the child's Individual Learning Plan
• supporting evidence from specialised professionals where specialised equipment or furniture is requested
• itemised quotes excluding GST
• confirmation that sufficient space is available for equipment or furniture to be safely installed and used.

Services are also required to maintain appropriate consent and supporting documentation.

The Inclusive Environments program has operated through several funding rounds throughout 2026.

The Quarter 4 deadline passed on 14 August, with successful applications from that round due to receive funding by 30 October.

The remaining final adjustment round closes at 5pm on Friday 16 October 2026, with eligible applications expected to be paid by 4 December.

There is an important consideration for services applying in the final round: funding allocated through the program must be spent during the 2026 calendar year and cannot be carried over into 2027.

The Department may consider extensions in limited exceptional circumstances.

For community preschools, creating an inclusive environment extends beyond additional staffing support.

The physical environment can determine whether a child can independently access a bathroom, move between indoor and outdoor environments, participate in experiences or engage alongside their peers.

The Inclusive Environments Funding Program gives eligible services an opportunity to identify those barriers and make targeted changes to remove them.

With the final 2026 child-based funding deadline approaching, eligible community and mobile preschools supporting children who require environmental adjustments have until 16 October to submit an application for the final funding round.

Read more about the Inclusive Environment funding here.