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Problems with indexation – contribute to finding the solution

PeakCare thanks our Member organisations that have provided us with advice about the possible implications of the recent wage review decision of the Fair Work Commission on the viability of their services. These impacts are, of course, compounded by other cost pressures arising out of the Superannuation Guarantee increase to 10.5% from 1st July 2022. PeakCare is pleased to be joining our colleagues from QCOSS in seeking an urgent review of the 2022-23 indexation rate (2.88%) applied to community sector funding to allow for, as an interim measure, the most pressing funding shortfalls to be addressed.

To properly address the trend that has existed for some time in respect of the gap between funding indexation and the ‘true’ labour costs of community sector organisations, PeakCare is also pleased to support the exercise initiated by QCOSS in partnership with the University of Western Australia Not-for-profits Research Team, led by Professor David Gilchrist, to create an improved ‘real world’, evidence-based indexation model.  To date, the research team has identified the statistical model to be used and is now collecting financial data from Queensland community sector organisations. Already, data has been provided by 16 organisations, but an additional 16 organisations are needed to participate in order to validate the indexation model and complete the project. Participation in the research will entail completing a spreadsheet outlining financial date for the years 2019, 2020 and 2021. For further advice about your possible participation, please contact scottb@qcoss.org.au. PeakCare strongly encourages our Member organisations to give earnest consideration to becoming involved in this much needed and extremely worthwhile project.

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