Feds unveil new grants framework for community sector

One of the main commitments will see the government increase grant payments in line with rising wages, where programs are linked to wage cost indexes. The government has already budgeted an extra $4 billion to cover these increased costs.

Describing the Community Sector Grants Engagement Framework as a “commitment to strengthen and support community sector organisations”, the government promised a refreshed, collaborative approach.

The framework is accompanied by a “Ways of Working” statement outlining government promises to be more collaborative, transparent, innovative and outcomes-focused when working with community organisations.

The government said the framework changes would include:

• “whole-of-government administrative and cultural change” in the way that agencies designed and managed community services grants

• improved grant design and processes

• greater funding certainty

• reduced red tape for grant recipients

• encouragement of diversity and flexibility.

The government said the changes would help community sector organisations “better plan their service delivery, retain and develop their workforce, and have more time to put towards delivering the best outcomes for Australians who use their services”.

Grantmakers were advised that this framework would work “in parallel” with the existing Australian Government Grants Framework and Commonwealth Grants Rules and Principles.

The framework was announced in a joint statement by the Minister for Social Services and National Disability Insurance Scheme (NDIS), Amanda Rishworth, and the Minister for the Public Service and Government Services, Katy Gallagher.

Rishworth said the framework would reset the relationship with the community sector “after a decade of Coalition neglect” and was developed in close consultation with the sector through a Community Services Advisory Group.

The Department of Social Services (DSS) and the advisory group received 237 submissions in generating an issues paper last year. Drawing on the paper’s findings, the framework acknowledged ongoing challenges faced by the sector, including:

• increased community need and demand for services

• workforce shortages, exhaustion and burnout

• a decline in volunteer numbers

• increasing red tape

• unsustainable funding.

Gallagher said that by giving community sector organisations the tools they need to succeed, they can do what they do best – supporting and giving back to Australian communities.

“Unlike the former Coalition government, who treated the community sector as an afterthought and left funding to run dry, we’re working hand in hand with the sector to create safer, fairer, and more supportive communities.”

The Community Council for Australia’s chief executive David Crosbie welcomed the changes to indexation and benefits for organisations contracted by government but said there were few new commitments from the Department of Social Services.

“There may be some benefits for organisations contracted by the Department of Social Services, and the document has many good intentions, but I don't think it is a game changer”, Crosbie said.

Mission Australia executive Marion Bennett welcomed the new framework.

“These are important signals that the Government understands that the community sector is an essential part of Australia's society and economy, employing around 10% of the nation's workforce, having a collective turnover of more than $190 billion each year, supporting our most vulnerable people and building community strength and cohesion,” Bennett told supporters on LinkedIn.

More information

DSS documents: Strengthening the Community Sector

Sector push for faster reform