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Service Agreement Information Kit for Funded Organisations

3.4.2 Price indexation

Disclaimer: this disclaimer must be read in conjunction with the content of this page.

The department will increase the funding payable each year of the Service Agreement by the rate of indexation approved by the Victorian Government. For financial years 2015-2019 the Victorian Government has approved the price indexation for funded organisations as detailed in the Approved 2017-2018 Price index rates (Excel, 105.5 KB, opens in a new window).

Price indexation has been delivered in a challenging fiscal and economic environment. Despite significant financial constraints, the Victorian Government is committed to increasing funding to help organisations meet cost pressures and ensure they can continue to deliver effective services that protect the most vulnerable members in our community. It is important for both the department and the community sector to manage costs and make the best use of available funds.

Annual price indexation is processed in July of each year of the Service Agreement and organisations are notified when processing is completed. Increased payments, backdated to 1 July, are provided to organisations by the next scheduled payment in the Service Agreement. Activities eligible for SACS pay equity (equal remuneration order) are indexed each year from 1 December (applies from 2012-2020).

Price index exceptional event arrangements

The price index exceptional event arrangement for the Department of Health and Human Services and the Department of Education and Training provides a formal mechanism for peak bodies to seek price adjustments where industrial and regulatory decisions occur which result in cost increases that are over and above the price index.

The scope of this arrangement for the Department of Health and Human Services and Department of Education and Training is outlined in the Price index exceptional event arrangements Department of Health and Human Services and the Department of Education and Training (Word,136 KB, opens in a new window).

Funding for substitute public holidays

When Christmas Day, Boxing Day and New Year's Day fall on a Saturday or Sunday, 'substitute' holidays occur on the following Monday / Tuesday. 'Substitute' days represent additional public holidays for the purposes of various enterprise agreements that cover staff on rosters that include Saturdays and Sundays. Appointment of these particular substitute holidays has been common practice for several decades and was legally enshrined as a permanent arrangement in the Public Holidays Act 1993.

The Department of Health and Human Services' funding to organisations incorporates, on an annualised basis, the capacity to deal with 'substitute' public holidays days for the two Christmas holidays and New Year’s Day. There is no requirement to supplement this funding in the years when such substitute days occur.

In 2009, the Victorian Government declared a substitute holiday for ANZAC Day that fell on a Saturday that year. Supplementary funding was provided in that instance as up until then substitute holidays had never been declared for ANZAC Day. Such a declaration was not repeated in 2015 when ANZAC Day again fell on a Saturday.

Note that the Public Holidays Act provides for a 'shift' of Australia Day holiday to the following Monday when the 26 January falls on a Saturday or Sunday. That is, no substitute holiday.