Statement on Sector Funding
The State Government funds a range of not-for-profit community service organisations to provide vital services on its behalf and for the benefit of the South Australian community. These services provide vital supports for vulnerable and disadvantaged people, and include child and family support, youth services, financial counselling, community and mental health, housing support, addiction help, disability services, and supports for First Nations’ and multicultural communities.
Yet funding levels have not kept pace with the increasing cost of service delivery. Award wages, superannuation levies, and business costs like rent and insurance have all gone up by more than the government funding increases provided through indexation.
Unlike ordinary businesses, community service organisations can’t just pass on these cost increases to customers, and we don’t have a profit margin to absorb higher costs.
The community services sector is facing unprecedented financial pressures. As not-for-profit organisations providing vital community services, we call on the major parties in this election to commit to:
- An immediate funding boost to assist in covering cost increases over the past year; and
- Adoption of a new indexation formula to adequately cover future cost increases.
Without such a commitment, we fear for the viability of community service organisations and the quality and continuance of the delivery of our vital services.
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