Since 1 July 2017, mandatory indexation applies to multi-year funding agreements 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.

From 2026-27 the Standard NFP Indexation rate is 2.5%.

Public authorities are required to pass on 2.5% indexation to NFP organisations that they fund in the following circumstances:

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

NFP Services Adjustment

To support NFP organisations in meeting wage and inflationary cost pressures, the Malinauskas Government has announced an Indexation Services Adjustment for eligible NFP funding arrangements.

From 2026-27, a subset of funding arrangements for the delivery of essential services across the social, community, home care, child protection, homelessness and disability sectors will receive annual indexation aligned with the annual government fees and charges adjustment factor. The fees and charges factor is calculated based on a mix of the Wage Price Index and the Consumer Price Index.

This recognises the higher wages and service delivery costs for frontline community services.

Eligible contracts will be verified by DTF to ensure consistency across NFP engagements.

The DTF Annual Fees and Charges rate will be published annually, and for 2026-27 this rate is 3.3%, resulting in additional indexation of 0.8 percentage points for 2026-27.

Historical NFP Sector Indexation Rates:

Historical NFP indexation supplementation amount: