Funding is available to non-government primary and secondary schools which are located in geographically isolated areas, including special schools or schools with special units for students with disabilities. Funding is also available for distance education facilities servicing these areas. Boarding schools which are not located in geographically isolated areas are not eligible for support.

From January 2009, CAP funding previously provided to the state and Northern Territory government schools became part of the National Education Agreement (NEA). A feature of this agreement is that it provides flexibility for states and territories to allocate Commonwealth funding to areas which they believe will produce the best outcomes for students. The NEA does not require CAP to continue for the state governments, however, the Council of Australian Governments (COAG) has agreed to outcome targets for rural students.

Non-government education authorities must allocate funds according to the specific conditions detailed in the Schools Assistance Act 2008 Administrative Guidelines: Commonwealth Programs for Non-government Schools, 2009 to 2012.   

The Australian Government’s CAP is additional to other sources of funding and is aimed at supporting quality learning outcomes. CAP funds are not to be used as a substitute for funding resources or services which are the responsibility of education systems, other agencies or providers. That is, CAP funds are intended to help with the additional and particular needs of geographically isolated students.
CAP funds are available for projects which support:

• Curriculum enhancement: Accessing activities which complement, support and enrich the curriculum for geographically isolated non-government primary and secondary school students such as:
• Excursions and hosting visits where the costs associated with excursions and visits are greater because of geographic isolation;
• Provision of support, above current staffing allocations and skills, for subjects such as Languages Other Than English (LOTE), music and attendance at sporting events; 
• Additional costs associated with activities which support secondary students in making the transition to further education, training and work (post school pathways) including VET in schools and work experience.
• Information and Communication Technology: Providing additional Information and Communication Technology (ICT) necessary in a rural setting to enable geographically isolated students to be confident, creative and productive users of the new technologies and understand the impact of these technologies on society. CAP’s role is to enhance education system responsibilities in the application of technology to teaching and learning.
• Professional Development: CAP funds may be used for the additional cost of travel, accommodation and relief time because of geographical isolation. It may also be used to cover course costs if the course is specifically related to remoteness. Given that responsibility for professional development of teachers rests with State education authorities/schools and that the Australian Government makes a significant contribution to the professional development of teachers through the Australian Government’s Quality Teacher Program, projects in this area would need to demonstrate they are a necessary addition to what is the usual responsibility of the education authority/school.
• Promotion of CAP: The promotion of information to inform CAP school communities including the evaluation, documentation and dissemination of information regarding program activities with emphasis, as appropriate, on best practice.
• School Support: Where sectoral costs associated with CAP program development and delivery (for example, salary costs of professional staff such as CAP co-ordinators and advisors) are necessary for the effective delivery of CAP, these should be treated as projects. 

Purchase of Tangible Items: CAP funds may be used for the purchase of capital items if consistent with the purpose of the program. For items of $5,000 or over, recipients must keep a register of assets that must be available for inspection by DEEWR staff, if requested. A copy of the assets register must be provided to DEEWR in December each program year.