TasCOSS and the network of community services peak bodies have combined forces to address one of the most important issues facing our industry: adequate indexation.
Indexation is meant to ensure that funding keeps up with rising costs. But indexation for many Tasmanian Government funded services has been stagnant at 2.25% for 20 years, barring the stop-gap increase to 3% for this Financial Year.
In the meantime, CPI is now at 6.5% and wages have increased by 2.9%. In real terms, our funding is going backwards.
In order to provide a long-term solution to this enduring problem, the peaks have commissioned work to develop a new, fit-for-purpose formula that would see our funding keep pace with rising costs, which will be shared with the Tasmanian Government as part of our submission to the 2023/24 State Budget Community Consultation process.
It is vital our members and the industry at-large remain abreast and informed around the work underway and understand the application. We have the pleasure of inviting you to attend one of two free briefings to be held on Monday 31 October and Tuesday 1 November 2022 in Hobart. There will also be the option to attend remotely via Microsoft Teams. The briefings will be conducted by lead researcher Professor David Gilchrist from the University of Western Australia’s Centre for Not-for-Profit Research.
Registration closes 5pm, Thursday 27 October 2022. For more information, please contact Adrienne Picone, Chief Executive Officer, on (03) 6231 0755 or email Adrienne.
If remote attendance is requested, details on how to join the briefing via Microsoft Teams will be distributed following registration.
Register to attend a Community Services Industry Indexation Briefing
We believe we have a unique opportunity to achieve a better outcome for our industry by way of a secure funding arrangement that reflects the changing operating environment, but we need to be persistent and vocal.
We invite you to reference this work in your own 2023/24 State Budget submissions. While the final reports won’t be ready if you are submitting in October 2022, we encourage you to endorse the approach. In case it’s useful, below is suggested wording to include. The information in the attached slides on this webpage might also be useful.
Our organisation has partnered with TasCOSS and other peak bodies to commission work to inform the appropriate level of indexation for community service organisations (CSOs). The work will look at the actual costs incurred by CSOs — costs not properly captured by the Consumer Price Index (CPI) or the Wage Price Index (WPI) — to determine a cost index specific for CSOs. The index will provide a formula for determining the appropriate indexation level for funding agreements in the future. Once this work is completed, we call on the Tasmanian Government to endorse and apply the formula to all contracts with community service organisations.
We also encourage you to consider a supplementary submission/letter to support the report when it is submitted as part of the TasCOSS Budget Priorities Statement in late November/early December 2022. We will be in touch about this closer to the time.