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NSW is heading into another tight budget cycle, with the government under pressure to manage rising costs and competing priorities across the state.
But at the same time, many communities are facing growing hardship while the services people rely on are under increasing strain.
This year’s NSW Budget is a critical moment for the future of the community sector.
Services are absorbing higher wages, rising rents and growing demand from communities doing it tough. At the same time, funding models often fail to reflect the real cost of delivering essential services.
The result is a sector stretched to its limits.
Why prevention matters
Too much of our current system is focused on responding to crises once problems have already escalated. Prevention and early intervention are not abstract ideas. They are practical investments that reduce long-term costs and improve lives.
Yet government funding remains heavily weighted toward crisis response. Rebalancing the system to support earlier intervention would deliver better outcomes for communities and reduce pressure on government services over time.
What needs to change
There are practical steps the NSW Government can take in this year’s Budget to strengthen the system.
First, homelessness prevention and housing stability must remain central. Supporting people to keep their housing is far more effective than responding once they have already lost it.
Second, the long-term sustainability of the community sector must be addressed. Despite improvement over the last couple of years, there remains a gap between funding indexation and the real cost of delivering services. A sector-specific indexation model would help ensure funding keeps pace with wages and operating costs. A transition fund would help organisations manage the impact of changes to Portable Long Service Leave and the SCHADS award.
Third, targeted investment is needed in communities facing the greatest disadvantage. That includes stronger support for children and families, improved access to services in regional NSW, and continued focus on outcomes for First Nations children and communities.
These investments are not only about fairness. They are about building stronger communities and reducing long-term pressure on crisis systems.
The months ahead will be important.
As the NSW Government prepares its next Budget, decisions will be made that shape the future of the community sector and the people we support.
Our sector sees every day what happens when services are properly resourced – and what happens when they are not.
Real change can only happen when the sector speaks with a strong and united voice.
I strongly encourage you to write or call your local MP to share your story, and let them know what is working and what needs to change.
Together, we can ensure the upcoming NSW Budget recognises the vital role community organisations play in supporting people through hardship and preventing problems before they escalate.
Now is the time to make that case.
