Canberra’s community sector organisations will receive more funding in tomorrow’s Budget.
The ACT Government will increase funding to community sector organisations by $15 million to reflect the recent Fair Work Commission annual wage review.
Earlier this month, the Fair Work Commission ruled that minimum wages and awards would be lifted by 5.75 per cent, reflecting the inflation rate’s effect on workers’ ability to meet their basic financial needs.
In the ACT Budget, the Community Sector Indexation rate will be adjusted to 5.25 per cent, to reflect the impact of the Social, Community, Home Care and Disability Services Award wage increase.
Rachel Stephen-Smith, ACT Minister for Families and Community Services, said the Fair Work Commission’s decision would “deliver better wages for Canberra’s dedicated community sector workers”.
“It is important we continue to support our non-government partners to pay these wage increases without reducing the services they provide to our community,” Ms Stephen-Smith said.
“This is a positive step forward, as many in our community are doing it tough with increasing cost-of-living pressures.”
The ACT Government funds not-for-profit community organisations through multi-year Service Funding Agreements that apply Community Sector Indexation to meet increasing wage-related and administrative costs impacting the community sector.
“The community sector deliver much needed support for families and individuals in our city,” Chief Minister Andrew Barr said. “This is why the government is continuing to work very closely with community organisations across a range of sectors.
“This additional funding through the Budget, combined with our close relationships with our community partners, will help deliver assistance to Canberrans that need it most.”
Dr Devin Bowles, CEO of the ACT Council of Social Service (ACTCOSS), welcomed the ACT Government’s increase of the Community Sector Indexation rate to 5.25%.
“We appreciate that ACT Government’s recognition that community sector’s costs are escalating quickly,” Dr Bowles said.
“The work of the community sector has become even more important to Canberra as cost-of-living increases put more Canberrans under pressure.”
