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Component II

Skip Navigation LinksThe Funding Reform Funding and Contracting ComponentII

Sustainable funding and contracting with the not-for-profit sector - next stage of implementation 


As part of the 2011-12 State Budget, additional funding of $600 million over four years was allocated to support a sustainable not-for-profit (NFP) sector and ensure that the Government pays a fair and appropriate price for community services purchased from the NFP sector.

The first funding injection, termed Component I, provided a 15% upfront, across-the-board price adjustment for all eligible NFP community service contracts. Component I has been rolled out to all government agencies, who in turn have passed it on to their NFP service providers with eligible community service contracts through contract variations.

The second funding injection, Component II, of approximately $117 million has been allocated to address issues of service sustainability which may not have been fully addressed in Component I. Component II will be phased in over two years through contract development and reviews, commencing from 1 July 2013, with $50.1 million in 2013-14 and $66.4 million in 2014-15 and subsequent years (subject to indexation).

Component II is not intended to increase service provision or meet unmet demand. It is targeted towards paying a fair and appropriate price to NFP organisations for service provision and sustainability of services over the longer term.

Component II will be made available as NFP community service contracts are developed, reviewed or renewed, or through price variations, and will be linked to the key procurement reforms contained in the Delivering Community Services in Partnership (DCSP) Policy.

Please click here  to download the full document outlining the component two roll out. 

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