ACT community organisations say they cannot keep up with rising demand as ACT Government funding fails to match the real cost of delivering essential services in the cost-of-living crisis.
The 2025 State of the ACT Community Sector Survey — released today by ACTCOSS — found that cost-of-living pressures are driving more Canberrans to seek help for housing, food, energy bills, mental health, and family violence.
Four in five community organisations rely on ACT Government funding, and nearly three in five now identify it as their most important income source — up sharply from 39 per cent in 2022.
But only 7 per cent say their funding allows them to employ enough staff to meet demand, and just 9 per cent consider their arrangements sustainable.
ACTCOSS CEO Dr Devin Bowles said: “The ACT community sector is doing everything it can to deliver essential services to Canberrans, but it is being asked to do more with less…
“The current funding model is not keeping pace with rising costs, growing demand, or the need for workforce stability.”
The survey found that 83 per cent of organisations experienced increased demand in 2024. More than half reported longer waiting times, while 52 per cent had more clients they could not support.
Poverty and disadvantage also surged, rising from 56 per cent in 2022 to 82 per cent in 2024.
The top three drivers of demand are cost of living (84 per cent); access to affordable housing / homelessness (81 per cent); and lack of mental health support (71 per cent).
Dr Bowles said urgent investment was needed to prevent vulnerable Canberrans being left without support.
“At a time when the ACT Government is investing billions in built infrastructure, like the tram extension and theatre, our community’s social infrastructure is fraying,” he said. “The ACT Government should increase its investment in social infrastructure through the community sector. If it does not, it risks having a city with shiny new transport and buildings filled with socially isolated, lonely people.”
Independent MLA Thomas Emerson said the findings showed the strain on the sector was “entirely predictable” during a cost-of-living and housing crunch.
“We can’t keep expecting community organisations to deliver more with less,” he said. “The strain on our community services sector is reaching breaking point. If the sector collapses, it’ll be the ACT Government that’s on the hook to step in and deliver those services.
“We can all see the growing gap in our community between the ‘haves’ and the ‘have nots’. A truly progressive jurisdiction would show more urgency in addressing that gap by investing sufficiently in social services.”
Mr Emerson said he would continue pushing for long-term, sustainable funding. His supply-and-confidence agreement with ACT Labor includes a review of sector funding ahead of the 2025–26 Budget.
The ACT Government has been asked for comment.
