Active Australia Innovation Challenge: Grants up to $30,000

EXECUTIVE SUMMARY: The Heart Foundation’s Active Australia Innovation Challenge is offering up to 15 grants of $10,000, $20,000 or $30,000 to Australian community groups, councils, schools, universities, TAFEs, and individuals with an ABN. Funded by the Australian Government, this program rewards genuinely innovative projects that increase physical activity in local communities. 

At a Glance

The “Hard” Eligibility Filter: Will You Qualify or Be Disqualified Instantly?

Before you spend a single hour on your application, run through this filter. The Heart Foundation’s judging panel applies these criteria before any application receives substantive review.

Must-Haves

•       ✅  You must hold a current Australian Business Number (ABN), OR be partnering with an eligible entity that holds one. In a partnership, that entity must submit the application and manage the grant.
•       ✅  Your project must be genuinely new or innovative. It cannot be something your organisation already does as standard operations.
•       ✅  Your project’s primary objective must be to increase physical activity in a specific group or community.
•       ✅  The entire project must be completed within 12 months of receiving the grant.
•       ✅  The project must take place within Australia (rural, remote, or metropolitan).
•       ✅  You must be able to enter into a formal Funding Agreement with the Heart Foundation.
•       ✅  If you are a previous grant winner, you must demonstrate a clear enhancement, expansion, or a completely new innovative idea.

Dealbreakers

•       ❌  Your project has already started or been completed before you submit. The Heart Foundation will not fund retrospective activity.
•       ❌  The project is “business as usual” for your organisation. Routine activities will be rejected regardless of how well written the application is.
•       ❌  Physical activity is not the primary outcome. Projects where movement is a secondary benefit will not progress.
•       ❌  Your project cannot be completed within 12 months. If this cannot be demonstrated, your application will be declined.
•       ❌  The project primarily benefits the applicant or business financially – for example by covering existing staff salaries or increasing revenue streams.
•       ❌  You cannot demonstrate the project is low cost or accessible. High-cost programs with no justification are ineligible.
•       ❌  You lack an ABN and have no eligible partner organisation to submit and manage the grant.

Unsure of your eligibility? Check Your Eligibility Probability Here.

The “Application Killer” Section: Three Non-Obvious Reasons Applications Fail

The Heart Foundation receives a significant volume of applications each round. Many are eliminated not because the underlying idea is weak, but because applicants fall into predictable traps that experienced grant assessors spot within the first few minutes of review.

1. The “Innovation Relativity” Blind Spot

The most common assumption applicants make is that innovation is a universal, fixed concept. It is not. The Heart Foundation’s guidelines make this explicit: what is considered innovative in one location may not be in another setting across Australia.

This matters in a very specific way. If your project idea has already been run in your community under any name, by any organisation, it is not innovative for your context, even if it is novel elsewhere in the country. Equally, a simple idea that has never been tried in your remote or regional community can qualify as genuinely innovative if you can articulate why it is new for your target group.

Applicants from metropolitan areas frequently lose points here because they describe programs that have been running in similar suburbs for years. A yoga program in inner Sydney is not innovative. A yoga program delivered via video link to a remote Indigenous community in the Northern Territory, co-designed with elders, may well be.

The fix: do not describe what your idea is in the abstract. Describe why it is specifically new, and for whom, in your exact location and demographic context.

2. The “Budget Ambition” Trap

The judging panel asks you to select the grant amount you need: $10,000, $20,000 or $30,000. The instinct for many applicants is to select the highest amount available on the assumption that more funding equals a stronger application. This is a critical error.

The application guide explicitly states that judges assess whether your budget is realistic and appropriate. If you select $30,000 but your project description clearly involves minimal costs, or if your budget breakdown includes vague line items and inflated figures, assessors will question your planning capability and your organisation’s capacity to deliver.

The fix: cost your project honestly from the ground up. If your idea only requires $12,000 to execute effectively, apply for $20,000 at most with a detailed justification for every dollar. A lean, well-justified budget signals credibility. An inflated budget signals inexperience.

A practical example: a community football club in regional Queensland running a structured walking program for inactive seniors aged 65 and over might legitimately need $15,000 to cover a qualified exercise facilitator for 40 sessions, promotional materials translated into the three most common CALD languages in their area, and equipment purchases. That is a fundable, credible budget. The same club requesting $30,000 with no additional activity or justification is likely to be questioned.

3. The “Sustainability Silence” Problem

Question 9 on the application form asks how your project can be maintained or progressed past the funding period. Many applicants treat this as a box-ticking exercise and offer a one or two sentence response with no substance. This is a significant missed opportunity.

Sustainability is one of the four primary scoring categories. The judges are specifically assessing whether the project can be replicated in similar communities, whether it has potential to scale nationally or sector-wide, and whether any planning for post-funding continuation has actually occurred.

Applicants who write something along the lines of “we will seek further funding after the grant period” without any detail are signalling that they have not thought beyond the initial 12 months. This raises a red flag about the organisation’s capacity to deliver lasting change.

The fix: before you write a single word of your application, map out a genuine 24 to 36 month roadmap. Identify specific co-funders, local government partners, in-kind support, earned revenue models, or volunteer structures that could sustain the program. Include at least two concrete post-grant mechanisms in your response to Question 9. Reference community partnerships that have already been established or are in negotiation.

Step-by-Step Submission Guide

The Active Australia Innovation Challenge application is submitted via SmartSimple, the Heart Foundation’s external online grants platform. Many applicants underestimate the technical steps involved. Follow this process carefully.

1.     Register on SmartSimple Before the Deadline

You must register for a SmartSimple account before you can access the application form. Do not attempt to register on the closing day. The system can experience high traffic volumes close to the 5:00pm AEDT deadline on 1 March 2026. Register at least one week in advance and confirm your login credentials.

2.     Prepare Your ABN Information

The ABN of the organisation submitting and managing the grant must be included during registration. If you are an individual partnering with an organisation, confirm which ABN will appear on the application before you start. This cannot be changed after submission.

3.     Conduct Community Consultation First

The Heart Foundation explicitly recommends speaking with your target community before developing your project idea. Applications that demonstrate genuine community input score significantly higher on the Community Need assessment criterion. Document your consultation process.

4.     Draft Responses to All 11 Questions Offline

The application contains 11 questions with specific character limits. Key limits: 2,200 characters for the project summary (Q5), and 1,060 characters for questions about community need, objectives, and innovation. Draft all answers in a separate document first. Once submitted, no changes can be made.

5.     Prepare Supporting Documentation

While not mandatory, supporting materials strengthen your application. The Heart Foundation accepts photos, short videos, and supporting documents. These do not need to be professionally produced. A short mobile phone video of your target community can meaningfully support your written responses.

6.     Prepare Your Budget Table

Question 10 requires a detailed budget breakdown in table format, including all line items and associated costs. Be specific. Avoid bundled or vague entries. If you are including participant costs, Question 11 asks you to explain and justify them separately.

7.     Submit and Confirm

After submission, you will be redirected to a confirmation page. If you are not redirected, contact the AAIC team immediately via email. Do not assume your application was received without this confirmation. No extensions will be granted regardless of technical circumstances on your end.

Key Dates Summary

The finalist pitch round involves presenting your project proposal via video link to a national judging panel including representatives from the Heart Foundation, the Department of Health, Disability and Ageing, and external experts in physical activity, health promotion, and community development.

Unsure of your eligibility? Check Your Eligibility Probability Here.

What the Funding Can Be Used For

Funding must directly support the delivery of the project. Based on the program guidelines and the types of projects funded historically, eligible expenses typically include equipment required to deliver the program, facilitation and coordination costs directly tied to project delivery, venue hire where needed, promotional and community engagement materials, and evaluation costs such as survey tools or participant reporting.

The grant is specifically not intended to cover existing employee salary costs for the duration of the funded project, or to generate profit or revenue for the applicant organisation. Projects that charge participant fees can still be eligible, but only where those fees are accessible and necessary for the project’s sustainability.

For community organisations looking for complementary funding, visit our guide on community grants available in Australia at australiangrants.org/community-grants-for-2021-australia for an overview of programs that can work alongside this Challenge.

Who Has Won Before? Learning from Past Recipients

Understanding the profile of past recipients is one of the smartest strategic moves you can make before writing your application. The Heart Foundation has funded a diverse range of projects since the program began in 2018.

Past winners include No Lights No Lycra, which brought women together to dance in darkened halls for wellbeing and movement. Champ Builders got kids physically active through structured boxing classes paired with Headspace-guided mental health sessions. Surfing the Spectrum offered free surf lessons for autistic children, expanding across five New South Wales communities through trained surf clubs. Pedal Power equipped 70 boarding school students on Thursday Island with bicycles and helmets. Loose Parts Play Pod created a travelling, staffed play experience for children aged 0 to 8 in Queensland.

The patterns across these projects are instructive. They target groups typically underserved by mainstream physical activity programs. They have a clear, specific community. They are low-cost to participants. They involve existing community structures. And they are genuinely replicable.

If your project idea shares these characteristics and you can articulate it clearly across the 11 application questions, you are in a competitive position.

Unsure of your eligibility? Check Your Eligibility Probability Here.

FAQ and Glossary

Is the Active Australia Innovation Challenge grant taxable?

The program guidelines do not provide a specific ruling on the tax treatment of funds received. Grant income can be assessable or non-assessable depending on your organisation type, ABN status, and how the funds are used. Consult a registered tax adviser or accountant to confirm your specific obligations before accepting grant funds.

Can I apply as an individual without a business or organisation?

Yes, but with an important condition. Individuals must either hold a current ABN themselves or partner with an eligible entity that holds one. In a partnership arrangement, the entity holding the ABN must submit the application and take responsibility for managing the funds and delivering the project.

Can I submit more than one application?

Yes. Eligible organisations and individuals partnering with eligible organisations can submit multiple project ideas. Each idea must meet all eligibility criteria independently and each will be assessed on its own merits.

What happens if I was a previous grant winner?

Previous winners are eligible to apply again in 2026, but must demonstrate either a clear enhancement or expansion of their previously awarded project, or present an entirely new and innovative idea. Simply resubmitting a previous application will not be accepted.

What happens to unsuccessful applications?

All applicants will be advised by email if their project does not progress to the finalist pitch round. Due to the volume of applications received, individual feedback is not provided. Reassessment of ineligible applications is not available given the program’s timeframes.

How are judges selected?

The judging panel consists of representatives from the Heart Foundation, the Department of Health, Disability and Ageing, and external stakeholders with expertise in physical activity, active living, innovation, health promotion, and community development.

What is the SmartSimple portal?

SmartSimple is the third-party online grants management platform used by the Heart Foundation to collect and manage applications. You must register for an account before you can access the application form. Your ABN must be included during registration.

Can a local business be involved in the project?

Yes. Local businesses can be part of your project, but they must demonstrate that the project’s primary outcome is community benefit through increased physical activity, and not for profit or private gain.

Glossary

ABN (Australian Business Number): An 11-digit number that identifies your business or organisation to the government and is required to submit or support an application.

AEDT: Australian Eastern Daylight Time. Applications close at 5:00pm AEDT on 1 March 2026.

Funding Agreement: A formal legal document between your organisation and the Heart Foundation that outlines the terms under which grant funds are provided and how they must be used and acquitted.

SmartSimple: The online grants portal used by the Heart Foundation for this program. You must register for an account before beginning your application.

Acquittal: The process of reporting to the funder how grant money was spent and what outcomes were achieved.

CALD: Culturally and Linguistically Diverse. The Heart Foundation strongly encourages applications that support CALD communities.

Women-led organisations and groups should also be aware of dedicated funding streams. Our resource on women in business and community grants covers programs that may complement this opportunity. Visit australiangrants.org/women-in-business for more information.

If your organisation is a social enterprise or not-for-profit, explore our guide on funding for social enterprises at australiangrants.org/funding-for-social-enterprises for concurrent funding options.

Unsure of your eligibility? Check Your Eligibility Probability Here.