Since 1 July 2017, mandatory indexation applies to all multi-year funding agreements (including procurement and grants) between South Australian public authorities and not-for profit (NFP) organisations, with the following exceptions:

• services transitioning to the National Disability Insurance Scheme (NDIS)
• services transitioning to the Commonwealth Government under aged care reform arrangements
• indexation arrangements negotiated as part of a competitive tender arrangement.

NFP indexation rates are published four years in advance to provide certainty to the NFP sector when considering multi-year contracts.

Public authorities are required to pass on the full indexed amount to NFP organisations that they fund in the following circumstances:

• for any new multi-year funding agreement with no specified indexation rate; and
• existing funding agreements with no specified indexation rate.

NFP Sector Indexation Rate:

Supplementation to the NFP Sector Indexation Rate

In recognition of the higher service delivery costs associated with minimum Award outcomes and inflation pressures, the Malinauskas Government, as part of the Mid-Year Budget Review 2022-23 and 2023-24 State Budget has committed $55 million over four years to support eligible non-government organisations who provide services in the social, community home care and disability sectors. The total indexation for these eligible non-government organisations is as follows:

Historical NFP Sector Indexation Rates: