Invest in a sustainable community services sector that is supported by long‑term, stable funding arrangements which reflect the true cost of delivering services, enable workforce stability, and provide fit‑for‑purpose infrastructure so organisations can effectively deliver early intervention, prevention and crisis responses across Victoria.
An inclusive, connected and just future depends not only on well‑designed reforms, but on a community services sector that has the stability, capacity and infrastructure needed to deliver them effectively. Without sustained investment in the foundations of service delivery, the ambitions of Victoria’s reform agendas across family services, mental health, housing and community wellbeing cannot be fully realised.
Experiences facing the community services sector
The community services sector in Victoria is under significant and increasing pressure. Inconsistent funding agreements and short‑term contracts create ongoing financial uncertainty and add administrative burden, diverting time and resources away from frontline service delivery. Organisations like Uniting are required to regularly tender across multiple government departments, incurring additional costs that are not covered by funding agreements.
Even when funding is secured, agreements frequently fail to account for essential operational costs that are now core to safe and contemporary service delivery. These include information and communications technology infrastructure, vehicles, facilities maintenance and the growing cost of cybersecurity. As a result, organisations absorb these costs without certainty or scale, constraining service quality, innovation and long‑term planning.
These pressures flow directly into workforce challenges. The current funding model makes it difficult to attract, retain and develop a stable, skilled workforce, particularly in areas of high demand or specialist practice. Uniting sees this impact across its service portfolio. In financial counselling, demand continues to rise while high caseloads and funding uncertainty limit workforce growth and professional development. In the alcohol and other drug sector, funding fluctuations have led to the loss of skilled workers, eroding service capacity and continuity.
Short‑term funding also results in the loss of effective initiatives when temporary investment ceases. Outreach roles established during COVID‑19 are a clear example—positions that demonstrated strong outcomes for vulnerable communities but were lost when short‑term funding cycles ended, leaving service gaps and unmet need.
In addition, fit‑for‑purpose physical infrastructure is essential to modern community service delivery. Uniting supports Infrastructure Victoria’s call for increased investment in community health infrastructure and notes that community services providers face similar challenges. Many facilities are ageing, carry significant maintenance liabilities and are not suited to contemporary models of safe, accessible and integrated care.
Components of the Package
A sustainable sector requires investment in the core enablers of service delivery, including:
1. Long‑term, stable funding agreements
Following the lead of the Labor Government in New South Wales, introduce longer‑term contracts with appropriate indexation to provide certainty, reduce administrative burden and enable strategic planning and innovation.
2. Funding that reflects the true cost of delivering services
Ensure funding agreements account for essential operational costs, including ICT, cybersecurity, vehicles, facilities maintenance and compliance, rather than shifting these costs onto providers.
3. Workforce stability and capability
Support workforce retention, skills development and continuity across community services by reducing funding volatility and enabling sustainable employment conditions.
4. Fit‑for‑purpose infrastructure investment
Enable community services providers to access capital investment for facilities that are safe, modern and suitable for delivering contemporary, relational and integrated services.
5. Funded evaluation and outcomes measurement
Ensure funding agreements include capacity for evaluation and outcomes measurement so services can continuously improve and contribute to the evidence base for effective early intervention and prevention.
Why this investment is the logical next step
Victoria has invested heavily in ambitious reform agendas across family services, mental health, housing, early childhood and community wellbeing. However, these reforms rely on a stable, capable and well‑resourced community services sector to succeed.
Without sustainable funding models, the system is forced into short‑term decision‑making that undermines workforce stability, service continuity and community trust. The costs of this instability are borne not only by service providers, but by families, children and individuals who experience fragmented support, delayed access and inconsistent care. Investing in a sustainable community services sector is therefore not a standalone reform—it is a foundational enabler that ensures existing and future government investments deliver their intended outcomes. By strengthening the operational, workforce and infrastructure foundations of the sector, Victoria can maximise the return on its reform efforts, support innovation, and ensure that early intervention, prevention and crisis responses are accessible, effective and enduring.
