As foreshadowed in the last State Budget, Treasurer Cameron Dick has announced the government will increase the indexation rate from 2.88 per cent to 5.07 per cent this financial year, allowing more money to flow to non-government organisations (NGOs) who provide support services to the community.

According to Dick, the indexation increase would almost double the rise in the value of contracts for critical support organisations by an additional $50 million.

“The frontline staff at these critical support organisations deliver vital services for some of the most at-risk Queenslanders,” Dick said.

“These organisations include community legal centres, domestic and family violence shelters, emergency care and accommodation services for at-risk children, and homelessness and disability support organisations.”

Queensland Council of Social Services (QCOSS) CEO Aimee McVeigh said the extra funding would go towards covering wages, superannuation, transport, IT and other essential operational costs.

“This will help community services workers to continue to meet the needs of Queenslanders,” she said.

Executive president of The Services Union Jennifer Thomas said the increase would be particularly welcomed by the sector’s largely female workforce who had stepped up during the pandemic and natural disasters.

“Many women are working in the sector, who are feeling the cost-of-living pressures,” Thomas said.

“We welcome this increase for these members who deserve to be valued for the work they do every day in our communities.”

As the sector gets funding relief, a further review of the indexation rate is expected to be completed later this year, with any additional changes incorporated into the 2023-24 financial year.

Communities Minister Leeanne Enoch said “every effort” would be made to ensure the payment was made quickly as part of the contractual arrangements departments hold with NGOs.