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• Indexation transparency


Serving struggling members of the community and giving them hope is part of The Salvation Army’s ethos.

The Salvation Army has welcomed the Commonwealth Government’s recent announcement to make indexation arrangements more transparent and its commitment to increased collaboration and partnership with the community services sector.

 

Indexation is critical for community sector organisations to continue delivering desperately needed services; however, the process for calculating and applying indexation is oblique.

 

A mandate that individual government agencies pass the full budgeted indexation to community service organisations through the grants process is a step towards greater transparency.

 

“The cost-of-living crisis that is harming our community so severely is also impacting our ability to serve the community,” said Jennifer Kirkaldy, The Salvation Army’s General Manager of Policy and Advocacy.

 

“Indexation is a very small part of the funding shortfall community services organisations face, but any move toward greater transparency is very welcome.”

 

Community service organisations like The Salvation Army are vital to assisting the most disadvantaged people in our community.


While the Commonwealth Government provides some funding, generally, government grants do not cover the full cost of service delivery, and these organisations rely heavily on the generosity of the Australian public to keep their services going.

 

“For every one dollar of funding we receive from the government in emergency relief, we deliver an additional two dollars of value to community members,” Jennifer said.

 

The Salvation Army looks forward to working collaboratively with the Commonwealth Government to find ways to partner with the government and other providers to help community members thrive.

 

Numerous reviews and reports into the community services sector have identified long-standing concerns about sustainability, which The Salvation Army believes can be addressed through a partnership model.

 

However, The Salvation Army cautions that the community services sector cannot compensate for structural issues, including the inadequacy of income support payments and incorrect housing system settings.

 

“The community services sector adds value that cannot be provided by either government or commercial interests, but it is critical that charities are not seen as a substitute for either,” Jennifer said. “Governments must not abdicate the responsibility for ensuring our systems and structures allow all people to live with dignity.”

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