ACT Treasurer Chris Steel has announced $10 million for community groups as the rising cost of living drives up demand. Photo: Ian Bushnell.
About 150 community service groups will be eligible for additional funding after a $10 million announcement from the ACT Government.
ACT Treasurer Chris Steele announced the two-year pre-budget commitment, saying the funding delivers on Labor’s promises to further support community organisations, and reaffirms “the ACT Government’s commitment to a strong, inclusive, and resilient community sector”.
Independent MLA Thomas Emerson welcomed the announcement. He said funding was desperately needed.
”Every community sector organisation I’ve spoken with is under serious pressure. Many are on the brink of collapse, being forced to lay off staff or discontinue some of their services to stay afloat.”
Mr Emerson said his supply and confidence agreement with Labor last year included strengthening the community services and reviewing funding before the upcoming budget. Though he welcomed the funding, he highlighted the need for reforms in the health sector.
“The ACT Government’s biggest budgetary pressure is growing health expenditure. Structural reform is needed, accompanied by far greater investment in prevention, which is the community sector’s core area of expertise. Health doesn’t start at the hospital, ” said Mr Emerson.
The funding announcement comes shortly after the ACT announced a $30 million four-year plan, partially funded by the Commonwealth, for several domestic violence support services around the city. The money will allow these organisations to expand some services.
However, many community organisations have been reporting that they are struggling with increased demand, putting a strain on their finances. Some groups claim they have never seen as much demand as they currently face as the cost of living crisis intensifies.
These funds will be welcome news for many groups, but the Greens have said it isn’t enough.
“$10 million sounds nice, but spread across two years and 150 organisations, an average of $33,000 per year won’t go far,” ACT Greens Leader Shane Rattenbury said.
The party said the funding was an example of pressure working, but added it believes the funding is only enough for the sector to survive, not to create a strong safety net.
“More people than ever are turning to local community organisations to cover the basics like food, housing, healthcare and household needs, so if today’s funding announcement is the end of it, that’s a real problem,” said
Regardless of whether it is sufficient to support the city’s community sector, the ACT Council of Social Services (ACTCOSS), which represents not-for-profit organisations in Canberra, is behind it.
“ACTCOSS is very pleased with the $10 million additional investment in the Canberra community that the government announced today. The government’s investment will enable the continuation of many of the vital services that Canberrans expect the community sector to keep delivering,” ACTCOSS CEO Dr Devin Bowles said.
This two-year funding boost is separate from a 3.35 per cent annual indexation on funding for the community services sector, which is already scheduled.
