This report presents the findings and recommendations of research into funding model options for Aboriginal Community Controlled Organisations (ACCOs) delivering child and family support services. The report identifies core principles to guide the design of a funding model that is responsive to the sector and aligned with commitments under the National Agreement on Closing the Gap. It also assesses a range of funding options, identifies a recommended model and sets out implementation considerations to support progressive reform.

A strong and growing evidence base shows that prevention and early intervention services are critical to improving child and family wellbeing and reducing the over-representation of Aboriginal and Torres Strait Islander children in the child protection system. The literature reinforces the distinct needs of children and families: holistic, integrated and trusted care that is trauma-informed, culturally grounded and deeply connected to identity, family, community and Country. While research gaps remain, the evidence is clear that ACCOs are best placed to deliver these community-led and culturally safe services. Their holistic model of care, strong community connections and cultural authority enable more responsive, relevant and effective support for children and families.

Despite this, current funding arrangements do not reflect the realities or strengths of ACCO-led service delivery. Consultation with ACCOs identified five core themes that underpin both current funding challenges and a future fit-for-purpose model:

• community leadership and self-determination
• administrative simplicity and flexibility
• organisational sustainability and sector growth
• holistic and responsive service design
• strong and supported workforce.

Building on these findings, the report outlines six funding principles to guide reform. It assesses a range of funding model options before recommending a hybrid model for ACCOs delivering child and family support services. The model combines stable block funding with needs-based funding that reflects community size, location and complexity, providing certainty while maintaining responsiveness to local context. It also proposes a staged transition towards more coordinated and pooled funding arrangements that reduce administrative burden and support genuine partnership between governments and the community-controlled sector. The report concludes with seven recommendations to support implementation across governments.