More than $120 million will be spent on boosting early childhood care and education in Indigenous communities.
Of the federal funding, $30 million is expected to provide up to 20 child care services in communities where there are none.
Education Minister Alan Tudge expects up to 3500 children will benefit.
The bulk of the funds - $82 million - will be used to expand a program coordinating early childhood services including healthcare, expected to help up to 8500 children across 27 communities.
Mr Tudge said it would make a big difference in terms of preschool, vaccination rates, maternal health and early education.
Up to 200 high-risk children in Queensland and Victoria are also set to receive support, with $9 million allocated to expanding an early years program across four sites.
"We've taken the most high-risk kids and got them to where the average Australian is by the time they start school," Mr Tudge said.
Another $1.9 million will be spent on an "explicit teaching" and "structured learning" method in two early learning centres in disadvantaged areas.
The announcement came a day ahead of Prime Minister Scott Morrison addressing parliament on the Closing the Gap implementation plan.
Australian Associated Press