Labor delivers on commitment to build a stronger community sector

The Albanese Labor Government is delivering on its commitment to strengthen and support community sector organisations with the launch of a refreshed collaborative approach. 

Following close consultation with the sector, we’re today announcing Australia’s first Community Sector Grants Engagement Framework.

The national Framework will drive a whole of government administrative and cultural change to how agencies design and manage community services grants to help the sector better plan for the future.

The Framework aims to improve community sector grant design and processes to provide more flexibility and certainty of funding, and reduce administrative burden, for grantees. 

This will enable community sector organisations to 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. 

Minister for Social Services, Amanda Rishworth, said she was proud to announce the new Framework – delivering on a Labor commitment to reset the relationship with the community sector after a decade of Coalition neglect.

“The community sector is the backbone of Australia and the Albanese Labor Government has been working collaboratively with them to meet the needs of all communities,” Minister Rishworth said.

“This new Framework was developed in close consultation with the community sector to ensure the sector thrives, government policy outcomes are achieved, and Australians are getting the help they need.” 

Minister for Finance and Government Services, Katy Gallagher, said a strong community sector was in the interests of all Australians.

“By giving community sector organisations the tools they need to succeed, we can let them do what they do best – supporting and giving back to Australian communities,” Minister Gallagher said.

“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.”

Within the Framework is a Ways of Working Statement that underpins how government will engage with the community sector.

It was developed following public consultation in 2023 to respond to key issues facing the sector, and was further shaped in consultation with the Community Services Advisory Group.

It builds on the Albanese Government’s reforms to restore respect for the community sector.

We mandated that agencies pass on indexation to grant recipients where grant programs are linked to one of the wage cost indexes.

In the May 2023 Budget, we adjusted the indexation framework across a range of programs for the community sector – providing an additional $4 billion above the existing indexation increase. This was in addition to $560 million provided in the October 2022 Budget to help organisations keep their doors open. 

More information is available on the Department of Social Services website.