The Australian Government initiative will work in partnership with both the Australian Olympic Committee (AOC) and the Australian Paralympic Committee (APC).

The Challenges will run from May 28 next year until the close of the 2012 Olympics on August 12, while the Parasport challenge will run through to the end of the 2012 Paralympics on September 9.

Gillard said the Olympic and Paralympic Challenges will tap into the spirit of the 2012 London Games, encouraging Australian kids to compete for gold, silver and bronze awards.

"Every four years we are captured by the talent, determination and spirit of our Aussie athletes as they take the world stage," said the Australian Prime Minister.

"These athletes provide the foundation for the dreams and aspirations of many young sports people as they strive to emulate their heroes.

"We want to take this enthusiasm and use it to get kids out in the fresh air showing the sportsmanship that Australia is rightly renowned for."

The Challenge can be staged over a week, or a term, and can even involve the staging of a mini-Paralympic day involving guest appearances from Paralympic athletes.

In the Olympic Challenge, primary school kids will accumulate points every time they take part in an individual sport or as part of a group at school or through a community organisation.

Meanwhile, the Paralympic Challenge will build on the existing Paralympic Education Programme which is designed for children and teachers to learn more about Australian Paralympians, the Paralympic Movement and people with disabilities in general.

Registrations will open in April 2012 and information will be sent to schools, out of school hours centres and other organisations who might want to take part in a Challenge.

There is no cost for children, schools or other organisations to participate.

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