Feds unveil new grants framework for community sector

Under the changes, the government will increase grant payments in line with rising wages, where programs are linked to wage cost indexes. The government has budgeted an extra $4 billion to cover these increased costs.

Describing the Community Sector Grants Engagement Framework as a “commitment to strengthen and support community sector organisations”, the government promised a refreshed, collaborative approach.

The framework is accompanied by a “Ways of Working” statement outlining government promises to be more collaborative, transparent, innovative and outcomes-focused when working with community organisations.

The government said the framework changes would include:

• “whole-of-government administrative and cultural change” in the way that agencies designed and managed community services grants

• improved grant design and processes

• greater funding certainty

• reduced red tape for grant recipients

• encouragement of diversity and flexibility.

Sector supports new deal, calls for further commitments

The Australian Council of Social Services (ACOSS), Mission Australia and the Community Council for Australia have largely praised the changes, particularly the moves on indexation.

ACOSS chief executive Cassandra Goldie said her organisation had played a key role in helping shape the framework, which would help create a stronger and more sustainable community sector.

"Our sector continues to experience some of the most challenging circumstances in recent memory. This framework is an important recognition of these challenges our sector faces and the need for a fairer and less burdensome Commonwealth grants system," Goldie said.

"It takes meaningful steps towards ensuring organisations have greater funding certainty, allowing them to better plan and retain their workforce.”

Goldie said ACOSS wanted the next federal government to go further in securing the longer-term viability of the sector.

“This framework is a step in the right direction, but chronic underfunding remains a significant barrier to meeting community need," she said.

"The next federal government must build on the progress of the framework. It must commit to better funding models, paying what it takes to deliver complex social services, as outlined in the National Not-for-Profit Blueprint released in November last year.

"This includes investment in frontline crisis services, as well as ensuring sufficient support for peak bodies and advocacy organisations.”

The Community Council for Australia’s chief executive, David Crosbie, welcomed the changes to indexation and benefits for organisations contracted by government but said there were few new commitments from the Department of Social Services.

“There may be some benefits for organisations contracted by the Department of Social Services, and the document has many good intentions, but I don't think it is a game changer”, Crosbie said.

Mission Australia executive Marion Bennett said the new framework sent a positive message.

“These are important signals that the government understands that the community sector is an essential part of Australia's society and economy, employing around 10 per cent of the nation's workforce, having a collective turnover of more than $190 billion each year, supporting our most vulnerable people and building community strength and cohesion,” Bennett wrote on LinkedIn.

Government hails framework as a 'reset' for community sector

The government said the changes would help community sector organisations “better plan their service delivery, retain and develop their workforce, and have more time to put towards delivering the best outcomes for Australians who use their services”.

Grantmakers were advised that this framework would work “in parallel” with the existing Australian Government Grants Framework and Commonwealth Grants Rules and Principles.

The framework was announced in a joint statement by the Minister for Social Services and the National Disability Insurance Scheme (NDIS), Amanda Rishworth, and the Minister for the Public Service and Government Services, Katy Gallagher.

Rishworth said the framework would reset the relationship with the community sector “after a decade of Coalition neglect” and had been developed in close consultation with the sector through a community services advisory group.

The Department of Social Services (DSS) and the advisory group received 237 submissions in generating an issues paper last year. The framework drew on the paper’s findings and acknowledged ongoing challenges faced by the sector, including:

• increased community need and demand for services

• workforce shortages, exhaustion and burnout

• a decline in volunteer numbers

• increasing red tape

• unsustainable funding.

Gallagher said that by giving community sector organisations the tools they needed to succeed, the Albanese government helped ensure they could do what they do best – support and give back to Australian communities.

“Unlike the former Coalition government, who treated the community sector as an afterthought and left funding to run dry, we’re working hand in hand with the sector to create safer, fairer, and more supportive communities.”

More information

DSS documents: Strengthening the Community Sector

Sector push for faster reform