Social Services Funding Indexation Project: Brief Overview of Project Rationale for Western Australian Council of Social Service

The provision of funding by governments to non-profit and charitable social services providers is an important issue for the sector—appropriate indexation levels can help to ensure the ongoing sustainability of service providers thus reducing the risk of service failure; a risk borne by service recipients. Additionally, the social services sector is under increasing financial pressure as economic circumstances (e.g., cost increases and workforce pressures), funding rationing methods (e.g., invoicing in arrears rather than block funding in advance) and increasing service demand negatively impact sustainability. This pressure is exacerbated by consecutive years of inadequate indexation based on inappropriate indexation calculation models.

This document provides an overview of the rationale, key issues and drivers associated with this project as well as further information that helps to explain the nature of indexes themselves and to identify broader financial pressures that are impacting the sector.

As such, this document is intended to be a resource for WACOSS to assist it in building capacity and advocating in this critical area. The document also includes an appendix in which the titles and links to other reports we have developed that are relevant to this area are included.