In the 2023-24 Budget the Government is increasing funding to community sector organisations by $15 million to reflect the recent Fair Work Commission Annual Wage Review by adjusting the Community Sector Indexation rate to reflect the impact of the Award wage increase.
The Government provides funding for not-for-profit community organisations that deliver services through multi-year Service Funding Agreements that apply Community Sector Indexation to meet increasing wage related and administrative costs impacting the community sector.
Reflecting the recent Fair Work Commission Annual Wage Review, the Community Sector Indexation rate has been adjusted in 2023-24 to reflect the impact of the Social, Community, Home Care and Disability Services Award wage increase.
As a consequence of the wages component of the composite rate increasing to 5.75 per cent, the revised Community Sector Indexation rate will be 5.25 per cent in 2023-24.
Quotes attributable to Chief Minister, Andrew Barr:
We know the community sector deliver much needed support for families and individuals in the our city, this is why the government is continuing to work very closely with community organisations across a range of sectors.
This additional funding through the Budget, combined with our close relationships with our community partners, will help deliver assistance to Canberrans that need it most.
Quotes attributable to Minister for Families and Community Services, Rachel Stephen-Smith:
The ACT Government recognises and welcomes the important decision by the Fair Work Commission. This will help deliver better wages for Canberra’s dedicated community sector workers.
It is important we continue to support our non government partners to pay these wage increases without reducing the services they provide to our community.
This is a positive step forward as many in our community are doing it tough with increasing cost of living pressures.
Quotes attributable to Dr Devin Bowles, CEO ACTCOSS:
ACTCOSS welcomes the ACT Government’s increase of the Community Sector Indexation rate to 5.25%. We appreciate that ACT Government’s recognition that community sector’s costs are escalating quickly.
The work of the community sector has become even more important to Canberra as cost of living increases put more Canberrans under pressure.
