Indexation

NCOSS has been calling on the NSW Government to provide adequate indexation of at least 3% for the sector. The 3% indexation will enable the sector to cover the rising cost of service provision, and provide workers in the industry, who are predominantly women, with job security and wage parity. It will also support organisations to keep their doors open - ensuring that the people of NSW can continue to access services.

We need the sector to join our advocacy calling for adequate indexation of at least 3%.

See below for updates and progress on what has happened so far:

12 July 2021

Higher indexation for organisations funded by the Department of Communities and Justice and NSW Health!

In response to ongoing advocacy, at the NCOSS Post-Budget event on 2 July the Treasurer and Minister Henskens announced that indexation for 2021-22 will be set at 2.75%.

This reflects the Fair Work Commission’s minimum wage determination of 2.5% and the increase to the super guarantee of 0.5% from 1 July (as it applies to the wages component).

We have followed up with DCJ to get more information on this announcement and we understand a communication will be issued to services shortly. In any event, indexation will be back-dated to July.

Similarly, we have been informed that NSW Health also intends to provide 2.75% indexation to health NGOs funded under the Ministerially-Approved Grants (MAG) program. We are awaiting written confirmation from NSW Health to be provided to the NGO Advisory Committee, of which NCOSS is a member. Stay tuned!

18 March 2021

A win for organisations funded by the Department of Communities and Justice!

Following sustained advocacy from NCOSS, the NSW Government has provided written confirmation that indexation for Department of Communities and Justice-funded organisations will be increased to 1.75% for the full 2020-21 financial year. Previously, this level of indexation was only provided for the wage component of organisations’ funding, but the 1.75% will now apply to organisations’ total funding. This is in line with the indexation rate for NSW Health-funded organisations and importantly, this funding will be backdated to 1 July 2020. You can read our media release about it here.

This is a fantastic achievement, but we still need to continue calling for adequate indexation for the sector of at least 3% in the State Budget going forward, to reflect the real and growing cost of service provision.

7 October 2020

A win for organisations funded by the NSW Ministry of Health!

In response to advocacy from NCOSS and peak health bodies on the NSW Health NGO Community of Practice, the Minister for Health and Medical Research, the Hon Brad Hazzard MP, has provided written confirmation that health NGOs funded under the Ministerially Approved Grants (MAG) program will receive 1.75% indexation for the full 2020-21 financial year. This increase should be backdated to funding received from 1 July 2020.

We still need to focus on calling for adequate indexation for the sector of at least 3% in the State Budget going forward, particularly for organisations funded by DCJ who have only been provided interim indexation for the time being.

6 July 2020

In response to NCOSS and other peak bodies, the Department of Communities and Justice has agreed to provide a 1.75% funding increase to DCJ-funded organisations, in line with the Fair Work Commission’s mandated 1.75% wage increase, helping organisations keep their doors open and continue to provide essential services to the people of NSW (see the news article). This will also be an interim measure applying to wages, until the State Budget in late 2020 determines indexation rates for the sector going forward.

It is still important to call for adequate indexation for the sector of at least 3% in the State Budget.

2 July 2020

In the lead-up to the state budget, NCOSS and other peak bodies called on the NSW Government to immediately provide interim indexation of at least 2% to the NGOs that it contracts to provide essential services. The 2% indexation would enable the sector to cover the rising cost of service provision, including the 1.75% wage increase from 1 July 2020 mandated by the Fair Work Commission.