The ARU will aggressively target the public school system in a bid to keep pace with rival football codes after posting its worst financial showing in more than a decade.
Rugby has traditionally been the domain of private schools but ARU chief Bill Pulver admits it's imperative the game gains more exposure after falling behind rugby league, AFL and soccer.
"As a country, we are changing and rugby must evolve and challenge its traditional thinking to continue to be relevant and financially sustainable in arguably the most competitive national sports market in the world," Pulver said.
A relentless push into the public schooling system is among the key features of the ARU's five-year strategic plan for 2016-2020 announced on Tuesday.
Pulver said 748 public primary schools were introduced to rugby for the first time in 2015, during which the ARU recorded a $10 million loss.
"We have a little bit of a history of having come primarily from private schools - white, Anglo-Saxon males," he said.
"If we are to truly to achieve the growth potential that we have for this game, we must be a game that reflects the society that we live in.
"So public schools are a massive opportunity.
"We clearly have not invested sufficiently enough in that area in the last few years.
"That's something we are going to correct."
The five-year plan was built collaboratively by the rugby community with input from all state and territory member unions and constituents, more than 8300 fans, sponsors and the Rugby Union Players Association (RUPA).
Central to the plan is grassroots development, with the ARU set to increase its development workforce by 50 per cent across the country as well as drive new programs in schools and rugby clubs to address declining participation rates.
Pulver is hoping the success of Australia's sevens team, the gold medal favourites for this year's Rio Olympics, will also inspire a whole new generation of female rugby players.
"We believe there is a place in our game for all Australians," he said.
"Australians usually follow a range of sports, not just rugby but our vision is for every Australian to enjoy rugby however they choose to connect with the game as a fan, spectator, administrator, volunteer or player."
But ultimately, the ARU wants more juniors taking up rugby.
"The best measure for the long-term health of the game is for the number of young boys and girls starting the game and playing today," Pulver said.
"So grassroots rugby, getting that part of the plan right is absolutely essential."
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