Media Release: ACT Government funding shortfalls impact ACT Community Sector’s capacity to meet demand

The ACT Council of Social Service (ACTCOSS) today released their factsheet – Funding for ACT community services: Findings from the 2025 State of the ACT Community Sector Survey, revealing a change in the landscape of funding.

The survey shows many in the community sector are worried they will not be able to meet increasing demands created by cost-of-living increases including in housing, energy and food.

The community sector includes a wide range of services. Virtually all Canberrans will use community services at some stage throughout their lives.

Community services span from emergency food relief to counselling for domestic and family violence, from to homelessness services to childcare, and from alcohol and drug services to youth programs.

The survey, which gathered responses from 129 community organisations, shows that four in five organisations rely on ACT Government funding.

Nearly three in five organisations identified the ACT Government as their most important source of funding – an increase from 39% in 2022. At the same time, reliance on other funding sources such as Commonwealth grants, philanthropy, and commercial income has declined.

Despite this growing dependence, most organisations report that ACT Government funding is inadequate, unsustainable, and fails to cover the full cost of service delivery. Only 7% of organisations said their funding allowed them to employ enough staff to meet demand, and just 9% considered their funding arrangements sustainable.

“The ACT community sector is doing everything it can to deliver essential services to Canberrans, but it is being asked to do more with less” said Dr Devin Bowles, CEO of ACTCOSS.

“The community sector gratefully acknowledges that the ACT Government is its primary funder. This makes it especially alarming that the current funding model is not keeping pace with rising costs, growing demand, or the need for workforce stability.”

“At a time when the ACT Government is investing billions in built infrastructure, like the tram extension and theatre, our community’s social infrastructure is fraying. The ACT Government should increase its investment in social infrastructure through the community sector. If it does not, it risks having a city with shiny new transport and buildings filled with socially isolated, lonely people,” said Dr Bowles.

“It made headlines this week when it looked like a handful of ACT Government contractors were going to have their contracts end in a month, with questions being asked about how this would affect service delivery”.

“The reality for the community sector is that short-term Government contracts and short notice for changes to Government funding mean that service delivery is under threat every year. Services for children, retirees, parents, people with disability and anyone seeking help”.

“Hundreds of community sector workers face job insecurity every year. Apart from the human cost, this short-term approach reduces the value of the Government’s investment. Organisations can’t deliver as effectively when they can’t plan ahead, and they don’t know whether they’ll be able to afford to run programs,” said Dr Bowles.

“Canberrans rely on community services every day. To ensure these services remain available and effective, the ACT Government must provide funding that reflects the real cost of service delivery”.

“Without urgent action and adequate investment, the sector’s inability to deliver services to meet growing demand will leave many Canberrans without access to essential services” said Dr Bowles.

This factsheet highlights the key findings about funding for community services in the ACT. The survey responses offer a snapshot of the ACT community sector and the full State of the Community Sector Report will be released in the final quarter of 2025.

You can find out more information on the growing demand on ACT community services and the factors driving this demand from our recently released factsheet: Demand for ACT community services: Findings from the 2025 State of the ACT Community Sector Survey. You can download a copy of the factsheet below.

ACTCOSS advocates for social justice in the ACT and represents not-for-profit community organisations. Follow us @ACTCOSS on Twitter, Facebook and Instagram.

Authorised by Dr Devin Bowles on behalf of the
ACT Council of Social Service Inc (ACTCOSS)