Abstract
The Human Services sector faces many challenges in providing timely, appropriate services and supports. A key factor is financial capacity.
Multi-year government procurement agreements must increase in line with demand and costs associated with operations if service providers are to maintain quality and timely provision of services. This ensures the purchasing power of organisations remains adequate over time and changes in expenses are responded to.
Without appropriate funding, a lack of resources forces providers to cross the line between sufficient funding and unsustainable business methods. Cumulative effects over time create and perpetuate a starvation cycle which reduces efficiency and hinders impact of much needed services. Ultimately the service user bears this risk.
This paper identifies and critiques current indexation methods used by states and territories in Australia. Often indexation consists of a combination between of Consumer Price Index and Wage Price Index by the Australian Bureau of Statistics. We discuss the relevance of CPI and WPI to the sector and how the nature of operations and workforce demographics are not reflected. We explore the theoretical nature of cost indexation in the Not-for-Profit Sector, as well as brief economic framework in demand and supply of services.
We conclude by presenting a discussion of the Chained Fisher Index as a more appropriate method informing our Australian Human Services Index.
Multi-year government procurement agreements must increase in line with demand and costs associated with operations if service providers are to maintain quality and timely provision of services. This ensures the purchasing power of organisations remains adequate over time and changes in expenses are responded to.
Without appropriate funding, a lack of resources forces providers to cross the line between sufficient funding and unsustainable business methods. Cumulative effects over time create and perpetuate a starvation cycle which reduces efficiency and hinders impact of much needed services. Ultimately the service user bears this risk.
This paper identifies and critiques current indexation methods used by states and territories in Australia. Often indexation consists of a combination between of Consumer Price Index and Wage Price Index by the Australian Bureau of Statistics. We discuss the relevance of CPI and WPI to the sector and how the nature of operations and workforce demographics are not reflected. We explore the theoretical nature of cost indexation in the Not-for-Profit Sector, as well as brief economic framework in demand and supply of services.
We conclude by presenting a discussion of the Chained Fisher Index as a more appropriate method informing our Australian Human Services Index.
| Original language | English |
|---|---|
| Publication status | Published - 19 Nov 2022 |
| Event | 15th Biennial Australian and New Zealand Third Sector Research Conference: The Voice and Contribution of the Third sector in Australia and New Zealand: Contemporary Achievements and Challenges in Creating Public Good - Centre for Public Value, UWA Business School, Perth, Australia Duration: 17 Nov 2022 → 19 Nov 2022 https://www.anztsr.org.au/15th-anztsr-conference-18-and-19-november-2022/ |
Conference
| Conference | 15th Biennial Australian and New Zealand Third Sector Research Conference |
|---|---|
| Abbreviated title | ANZTSR 2022 |
| Country/Territory | Australia |
| City | Perth |
| Period | 17/11/22 → 19/11/22 |
| Internet address |