Since 1 July 2017, mandatory indexation applies to all multi-year funding agreements between South Australian Government agencies and not-for profit (NFP) organisations, with the following exceptions:

  • services transitioning to the National Disability Insurance Scheme (NDIS)
  • services transitioning to the Commonwealth Government under aged care reform arrangements
  • indexation arrangements negotiated as part of a competitive tender arrangement.

The current NFP indexation rate is set at:

2020-2021 2.5%

In May 2021, the South Australian Government reconfirmed its commitment to publish NFP indexation rates four years in advance to provide certainty to the NFP sector when considering multi-year contracts.

Future NFP indexation rates are set at:

2021-2022

2.5%

2022-2023

2.5%

2023-2024

2.5%

2024-2025

2.5%

Agencies are required to pass on the full indexed amount to NFP organisations that they fund in the following circumstances:

  • for any new multi-year funding agreement with no specified indexation rate; and
  • existing funding agreements with no specified indexation rate

Historical NFP indexation rates

2020-20212.5%
2019-20202.5%
2018-20192%
2017-20182%