2026-27 indexation for NSW non-government organisation contracts

DCJ will pay 4.75% indexation on eligible contracts for the 2026-27 financial year.

Indexation will be calculated on the annual funding base of eligible contracts and programs. The first indexation payment expected to be paid in October, separate to the quarterly payment, and it will be back dated to 1 July 2026. This year’s indexation increase will then be built into the funding base (or unit price) for the remaining term of the contract period and included in service providers' quarterly payments from January 2027 onwards.

Indexation is only paid on funding programs that are contracted by DCJ to deliver human services and on eligible contacts that have annual funding. It does not apply to one off payments or one-off grants. We are reviewing which contracts and programs can have indexation applied. This year’s indexation will need to consider procurement activities and the eligibility of the new contracts and programs from the last financial year.

DCJ will advise all eligible service providers when the indexation payment is made.