Gagné’s model of giftedness, first proposed in 1991, has been influential in Australian education and has provided learning communities with a common terminology.
Gagné makes a distinction between innate or natural abilities (giftedness) and the superior mastery of systematically developed abilities in at least one field of human endeavour (talents).

Giftedness refers to a student's outstanding potential and ability in one or more domains, (e.g. intellectual, creative, socio-affective and sensori-motor).
Talent refers to outstanding performance in one or more fields of human activity. Talent emerges from ability as a consequence of the student's learning experience (Gagné, 1991).
In Gagné's model natural abilities or giftedness may be transformed via a number of catalysts into well-trained and systematically developed skills (talents). Factors such as an intervening developmental process of maturation, daily use in problem solving situations, informal training and practice or formal training in a particular field of activity, combine to create an engaging environment which allows and encourages the gifted child to develop their abilities into outstanding achievement when compared to that of their peers.
Unlike many models Gagné's differentiated model accounts for the gifted underachiever who may not achieve at levels equal to their abilities and suggests reasons why the high potential of these students is not fulfilled. The distinction between giftedness and talent reflects the distinction between potential and achievement.
Gagné's model also acknowledges the important influence of the environment and other factors on the development of natural abilities into performance areas.
It is considered a strength of Gagné's model that those who identify individuals as gifted are encouraged to move beyond the traditional instruments that are commonly used to identify aptitudes and talents. It also clearly places intellectual aptitudes and academic talents as one of the range of aptitudes and talents that exist.
Explicitly, Gagné recommends that educators look wider than the traditionally test-based definition of the top five per cent of the population that, historically, would have been offered access to gifted programs. He argues instead that some 15 per cent of the population distinguish themselves sufficiently from the general population to benefit from an academic program somewhat different from that of the average student (Gagné, 1991). Beyond this, as talents develop, he acknowledges that supplementary provisions may be necessary for what he calls a ‘good fit’ between specific talent and specific enrichment. This specific enrichment would be offered to smaller numbers of specifically talented individuals in the area of their talent.