Australian dry-land crop producers farm in regions with highly variable climate and soils. Farmers have responded to the pressures of rising costs by pioneering and adapting new technologies to narrow the gap between actual and water-limited yield. With yields reaching a plateau in many of the developed world’s cropping areas, it is possible that Australia’s leading farmers have similarly closed the exploitable yield gap and require technological breakthroughs to sustainably push the production frontier to new and higher levels. To assess the potential for Australian farmers to continue closing the yield gap, and possibly increase water-limited yield, the long-term farm production records of individual wheat fields of three leading farmers in South East Australia were used to ascertain the applicability of modelling to develop new and innovative practices. The cropping systems simulator APSIM was used to establish the attainable simulated yield based on the farmers’ chosen management inputs for wheat crops over a period of 16–20 years. A strong relationship (r2=0.89, RMSD=508kgha−1) was found between actual and simulated yields. This relationship indicates that yield-reducing factors not simulated by APSIM (weeds, disease etc.) were largely controlled on these farms and confirms APSIM’s suitability for this analysis. Over the 16–20 year study period, the average yield gaps on the three farms ranged from 480 to 770kgha−1; representing between 74 and 82% of their water-limited yield potential. For these leading farmers, the yield gap is only small and unlikely to be economically exploitable under current management practices. Consequently, three tactical management innovations with potential to improve farm wheat yield and reduce risk were evaluated. One innovation investigated whether farmers practicing no-till crop establishment, who were able to control weeds prior to sowing, could benefit from sowing current cultivars earlier than present-day practice. It was found that leading farmers are already sowing at the optimum time and sowing earlier would not increase yield because of greater risk of frost damage. Two other innovations were found to have practical application. The first used Yield Prophet® to assist farmers decide when to apply in-crop nitrogen fertiliser based on a more complete understanding of nitrogen and water requirements of crops in variable growing seasons. The second innovation involved sowing slow maturing wheat cultivars earlier than current practice but only in years with adequate stored soil water and early season rainfall. Both innovations were found to increase grain yield and reduce risk of over- or under-application of nitrogen fertiliser. Investigation of strategic and tactical management options to increase yield using simulation modelling for subsequent evaluation in the field has the potential to keep Australian farmers at the forefront of innovations in crop production.