Social services funds being whittled away by inflation

Funding shortages mean domestic violence victims in the Northern Territory are being turned away. (Diego Fedele/AAP PHOTOS)

As the nation grapples with escalating rates of domestic violence, victims in the Northern Territory are being turned away because of ongoing funding shortages.

A Council for Social Services report reveals 41 per cent of organisations that provide support are unable to meet cost increases and many are plagued by issues that come with short-term government grants.

While cost-of-living pressures are driving more people to seek help, "poor funding policy" across successive Territory governments have left the welfare sector short-changed, the authors of the research found.

Community services support Territorians in times of crisis, keeping them alive and safe and with roofs over their heads, the council's chief executive Sally Sievers said.

"Every Territorian will benefit from the contribution of a nonprofit at some point in their lives. 

"If these services are not funded in a sustainable way, the implications for Territorians will be disastrous."

The report shows inflation whittling away profit margins at many NT charities, leaving "approximately half the sector in a precarious financial position".

Despite a lack of funding, the report found the sector to be one of the Northern Territory's largest employers, accounting for 8.4 per cent of the workforce and surpassing mining and manufacturing at 4.6 per cent and construction with 8.2 per cent.

Charities engaged more than 10,000 volunteers, accounting for a total of more than 21,000 workers.

Domestic and family violence expert Chay Brown said a major problem for social services was that funding could not be used for core work and was instead tied to projects or programs that ran over a 12-month or 24-month cycle.

"The short-term nature of the funding makes recruitment difficult and means we can't do the long-term planning to bring about generational change," she told AAP. 

"There’s not enough funding for services to deliver effectively and we have continually told the government we need at least five-year funding cycles."

Services right across Australia were not adequately funded but in the NT it was more acute, Dr Brown said.

"In the NT it is magnified by the extreme levels of need, the expense of delivering a service in remote locations, the unsuitable nature of 'national responses' and unique workforce challenges," she said.

"(Social) services do what governments cannot. We do the invaluable crucial work to maintain the basic dignity of human life ... 51 women have died in 2024 ... the least (governments) can do is fund us adequately."

A similar report by the Australian Council for Social Services in 2023 found "insecure funding" was a nationwide problem for the sector.

It showed 82 per cent of domestic and family violence services were funded by short-term state and territory governments.

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