Three in five Tasmanian community services organisations have turned people away over the past 12 months, according to a new survey from the sector’s peak body.
The Tasmanian Council of Social Service’s Community Services Industry Sustainability Check found 48% of organisations are cutting services due to a lack of resources.
Of those surveyed, 81% reported increased demand without additional resources, while only 21% considered themselves financially sustainable.
More than half expect to make a loss this financial year.
TasCOSS CEO Paula Wriedt said the findings showed funding pressures were now directly affecting Tasmanians’ access to essential support.
“Demand is rising at the same time as wages and other operating costs, but funding simply isn’t keeping pace,” she said.
“This is an avoidable crisis unfolding in slow motion.”
Jordan River Service, which supports people across Bridgewater, Gagebrook and Herdsmans Cove, expects to make a loss this financial year.
CEO Mel Best said the organisation’s costs were rising by about 4.5% while its government funding was indexed at 3%, forcing it to move to a four-day working week.
“On the demand side, we’re increasingly seeing working families requesting assistance only a few days after payday because their wages simply aren’t covering the essentials,” Best said.
The industry is calling for an indexation approach that reflects the actual cost of doing business, funding for mandated wage increases and longer-term funding agreements.
A stategovernment spokesperson said understands that “costs are rising”.
“[It] is exactly why the latest state budget invested more than $650 million into community organisations across Tasmania.”
“This includes $4.8 million for TasCOSS, $55 million for Neighbourhood Houses, $7.1 million for food security providers and much more.”
The spokesperson said nearly $600 million had been invested in housing and homelessness services, with $235.4 million available for electricity concessions.
“We are working with the sector to progress longer term funding agreements and we are committed to reviewing the level of indexation to provide certainty, in 2027-28,” the spokesperson said.
Labor MP Ella Haddad said more Tasmanians were leaning on community sector providers as the cost of living crisis deepened, some for the first time.
“They are basically being asked to do more with less and that’s going to really keep pinching and keep hurting the Tasmanians who rely on those services so heavily,” Haddad said.
“The community sector relies on government funding to provide those services on behalf of government and those organisations need to have the funding certainty that they require to provide the services that Tasmanians rely on.”
