This report examines the financial sustainability of not-for-profit organisations delivering social services to vulnerable Australians. The cost of service delivery has been increasing but funding has not kept pace, putting organisations under significant pressure. 

The report highlights several concerning impacts of inadequate funding.

• The sector has an inability to compete with wages and conditions in other industries, risking the loss of experienced staff.
• Increasing burnout and stress among social services workers due to unsustainable workloads.
• Service contraction or discontinuation in areas of critical need.
• Flow-on negative fiscal effects for governments as prospective clients are unable to participate in economic activity.
• Increased demand on primary healthcare and acute care budgets as vulnerable Australians seek support through the health system.

The report recommends Australian governments develop:

• A comprehensive contracting process based on empirical evidence of cost and service requirements.
• An indexation process ensuring timely and full allocation of funding to cover increasing costs.
• A mature impact-based response to policy changes and economic and social shifts.
• A comprehensive data asset development process for transparency over service gaps.