Full Indexation is a ‘Great Win’ For SA Community Organisations
3 July 2017 at 4:45 pm
A funding “shake-up” that will see full indexation on not-for-profit funding contracts in South Australia has been greeted as a “great win” for community organisations.
State treasurer Tom Koutsantonis announced at the South Australian Council of Social Service Post-Budget Breakfast on Thursday that the state government would now provide full indexation on not-for-profit funding contracts.
From 1 July all contracts will have full indexation included with an indexation rate of 2 per cent for 2017-18 and 2018-19, and 2.5 per cent for 2019-20 and 2020-21.
The move, which promises to give consistency across the whole of government and certainty over the amount of funding in multi-year contracts, was welcomed by SACOSS, together with Volunteering SA and NT, Conservation SA, the Arts Industry Council SA and Sport SA.
SACOSS CEO Ross Womersley said the new policy would be a great benefit to the not-for-profit sector and would ensure the value of funding of services was not diminished over time.
“This is a great win for SA community organisations and comes on the back of years of some government departments not passing on the full rate of indexation of funding they received,” Womersley said.
“In the worst cases we had contracts which included indexation but the rate was 0 per cent.”
The decision to guarantee the sector funding increases over the next four years puts an end to the year-to-year uncertainty faced by not for profits over government support.
Previously, the sector was forced to negotiate with the government each year over the extent of the increase.
Evelyn O’Loughlin, CEO Volunteering SA and NT, said the government’s commitment to the sustainability of the sector was “a welcome decision” that followed years of campaigning.
Conservation SA CEO Craig Wilkins said the move was “only fair”.
“Community and for-purpose organisations provide incredible value delivering essential services across the state,” Wilkins said.
“It’s only fair that funding keeps pace with inflation.”