❓ Ms Freeman asks about the impact of changes to the indexation formula for non-government human services funding, contrasting the current government's approach with the previous Liberal-National government. The Minister details the reversal of the previous government's CPI-only indexation to a wage-price index weighting, resulting in increased funding.
AnsweredQoN 541Legislative Assembly
QuestionView source ↗
NON-GOVERNMENT HUMAN
SERVICES SECTOR — INDEXATION FORMULA
541. Ms J.M. FREEMAN to the Minister for Community Services:
Before I ask my question, I also
recognise, on behalf of the member for Kimberley, Dillon from Fitzroy Crossing,
who is in the gallery, and I welcome him to the Parliament today.
I refer to the McGowan Labor
government's responsible financial management that has meant more
support for WA's community services sector.
(1) Can the
minister update the house on how changes to the way the government indexes
funding for the non-government human services sector will lead to more money
for those services that provide vital support to our community?
(2) Can the
minister outline to the house how this compares with the way the community
services sector was treated by the previous Liberal–National
government?
SERVICES SECTOR — INDEXATION FORMULA
541. Ms J.M. FREEMAN to the Minister for Community Services:
Before I ask my question, I also
recognise, on behalf of the member for Kimberley, Dillon from Fitzroy Crossing,
who is in the gallery, and I welcome him to the Parliament today.
I refer to the McGowan Labor
government's responsible financial management that has meant more
support for WA's community services sector.
(1) Can the
minister update the house on how changes to the way the government indexes
funding for the non-government human services sector will lead to more money
for those services that provide vital support to our community?
(2) Can the
minister outline to the house how this compares with the way the community
services sector was treated by the previous Liberal–National
government?
AnswerView source ↗
Before I answer the member's
very good question, I acknowledge, on behalf of the member for Bassendean,
representatives from the P&C and school board from Hampton Senior High
School who are in the gallery today.
(1)–(2) I
know that the leadership from Hampton Senior High School will be very interested
in the indexation formula to apply to the non-government human services sector.
It can sound a little dry, but it is incredibly good news for the community
sector in Western Australia. I am referring to the indexation formula that
applies from year to year, with the state government adjusting any funding that
goes to the not-for-profit sector. Of course, that is not in just my portfolio
in the community services area, but also relates to disabilities, health,
mental health and alcohol and drug services—a total of, I think, over
$1.5 billion of contracts funded by the state government.
I
remember in 2015 being in the office of the then CEO of the Western Australian
Council of Social Service, Irina Cattalini, when she received the news that the
Liberal–National government had unilaterally changed the formula by
which contracts would be indexed. A longstanding convention or formula had
applied previously. The majority of the indexation was based on the Perth
labour wage index of 80 per cent weighting of the wage price index, with 20 per
cent for the Perth consumer price index. The then CEO of WACOSS got the
news that the then Liberal–National government, despite its rhetoric of
working together with and consulting the not-for-profit sector, had decided to
change the formula to the CPI. That, of course, had a huge impact on the
not-for-profit sector. A huge component of its work is wage related, so it
needs recognition in its indexation of what is happening with wages in the rest
of the community.
It is due to the good governance of
the state's finances and the work of the Treasurer and of cabinet under
the leadership of the Premier that we are able to reverse that Liberal–National
government decision and go back to an 80 per cent weighting of the wage price
index, and 20 per cent for the consumer price index. At the moment, it is
estimated that that will provide an improvement for the sector of over $30 million
over the four years of forward estimates, and that is very welcome. There is a lot
of work to do to support the community services sector. I wish our finances had
been left in better shape so that we could put more money its way, but we are
managing our support for it in a responsible way in genuine partnership.
very good question, I acknowledge, on behalf of the member for Bassendean,
representatives from the P&C and school board from Hampton Senior High
School who are in the gallery today.
(1)–(2) I
know that the leadership from Hampton Senior High School will be very interested
in the indexation formula to apply to the non-government human services sector.
It can sound a little dry, but it is incredibly good news for the community
sector in Western Australia. I am referring to the indexation formula that
applies from year to year, with the state government adjusting any funding that
goes to the not-for-profit sector. Of course, that is not in just my portfolio
in the community services area, but also relates to disabilities, health,
mental health and alcohol and drug services—a total of, I think, over
$1.5 billion of contracts funded by the state government.
I
remember in 2015 being in the office of the then CEO of the Western Australian
Council of Social Service, Irina Cattalini, when she received the news that the
Liberal–National government had unilaterally changed the formula by
which contracts would be indexed. A longstanding convention or formula had
applied previously. The majority of the indexation was based on the Perth
labour wage index of 80 per cent weighting of the wage price index, with 20 per
cent for the Perth consumer price index. The then CEO of WACOSS got the
news that the then Liberal–National government, despite its rhetoric of
working together with and consulting the not-for-profit sector, had decided to
change the formula to the CPI. That, of course, had a huge impact on the
not-for-profit sector. A huge component of its work is wage related, so it
needs recognition in its indexation of what is happening with wages in the rest
of the community.
It is due to the good governance of
the state's finances and the work of the Treasurer and of cabinet under
the leadership of the Premier that we are able to reverse that Liberal–National
government decision and go back to an 80 per cent weighting of the wage price
index, and 20 per cent for the consumer price index. At the moment, it is
estimated that that will provide an improvement for the sector of over $30 million
over the four years of forward estimates, and that is very welcome. There is a lot
of work to do to support the community services sector. I wish our finances had
been left in better shape so that we could put more money its way, but we are
managing our support for it in a responsible way in genuine partnership.
Explore WA Government Data
Search the full archive in the free dashboard, or query programmatically via API.
Explore more
Government Gazette
Appointments, regulatory notices, planning changes.
Hansard
Debates, questions, speeches and sentiment.
Tabled Papers
Reports and documents tabled in Parliament.
Committees
Committee profiles and recent reports.
Regulations
Subsidiary legislation with filters and summaries.
Bills
Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.