Since 1 July 2017, mandatory indexation applies to all multi-year funding agreements between South Australian Government agencies and not-for profit 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.

Indexation rates are set at:

2017-2018

2%

2018-2019

2%

2019-2020

2.5%

2020-2021

2.5%

Agencies are required to pass on the full indexed amount to not-for-profit 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.

Where the services contracted include staff employed under the Social, Community, Home Care and Disability Services Industry Award 2010, who are eligible for pay adjustments until 1 December 2020 under the 2012 Fair Work Australia’s Equal Remuneration Order (ERO), a combined indexation and ERO rate will continue to apply.