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.

The NFP Indexation Rate is published in advance to provide certainty to the NFP sector when considering multi-year contracts.

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.

NFP Sector Indexation Rate:

Supplementation to the NFP Sector Indexation Rate

To support eligible non-government organisations (NGOs) in meeting the costs associated with wage and inflation pressures in 2024, the Malinauskas Government, as part of the 2024-25 State Budget, committed $18.4 million over four years. The pressures impact a range of NGOs providing services in the social, community, home care, child protection, homelessness, and disability sectors.

This initiative is in addition to the supplementation to NGOs that was announced in the 2022-23 Mid Year Budget Review and 2023-24 Budget. The total NFP Sector Indexation Rate for these eligible NGOs is as follows:

Historical NFP Sector Indexation Rates: