Since 1 July 2017, mandatory indexation applies to all multi-year funding agreements (including procurement and grants) between South Australian public authorities 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.
NFP indexation rates are published four years in advance to provide certainty to the NFP sector when considering multi-year contracts.
The NFP indexation rates are set at:
Public authorities 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.
Supplementation to the indexation rate for 2022-23
In recognition of the higher service delivery costs associated with minimum Award outcomes and inflation pressures experienced in 2022, the Malinauskas Government, as part of the Mid-Year Budget Review 2022-23, has committed $55 million over four years to support eligible non-government organisations who provide services in the social, community home care and disability sectors.
Effective from 1 July 2022, this supplementary increase of 2.6 percentage points to the NFP indexation rate will be paid in addition to the existing 2.5% NFP indexation payment providing a total indexation rate of 5.1% for eligible NFP service providers for the 2022-23 financial year.
Historical NFP indexation rates