Communities and Justice

Community Sector Agreement

This information is for community sector providers and NSW Government funding agencies about the introduction of the Community Sector Agreement resulting from the review of the Agreement for Funding of Services.

It provides access to the Community Sector Agreement Standard Terms and Schedule template and an overview of the plan for implementation.

Review of the Agreement for Funding of Services

The Agreement for Funding of Services was introduced in 2017 under PBD-2017-04. A review was undertaken in early 2019 which made minor changes, with a commitment to undertake a fuller review at a later date.

In 2023, the NSW Government committed to delivering more job security and funding certainty for the NSW community services sector.

As part of the Secure Jobs and Funding Certainty Roadmap Priority Area 2, a Funding Framework was launched in January 2026 to support a standardised and more consistent process for contract management.

To support this commitment, a review of the Agreement for Funding of Services was undertaken.

The review involved consultation with NSW Government agencies, community sector peak bodies and the Service Provider Consultative Group. Feedback highlighted the need for greater consistency in contracting, which has informed the development of the revised Standard Terms and Schedule.

The Community Sector Agreement

The Community Sector Agreement was approved by the NSW Procurement Leadership Group in June 2026 and replaces the Agreement for Funding of Services as the preferred contract to be used between NSW Government Agencies and contracted community sector organisations.

The Community Sector Agreement continues to consist of the Standard Terms and Schedule and requires these two parts to be read together.

The Community Sector Agreement aims to:

  • improve consistency across government contracts
  • support longer-term funding where appropriate
  • make contracts clearer and easier to use
  • provide greater stability and certainty for the sector

Implementation of the Community Sector Agreement

The Community Sector Agreement will be introduced through a phased approach between 2026 and 2028. Your funding agency will contact you to discuss options for transitioning to the new Agreement.

While your existing contract remains in place, its current terms and conditions will continue to apply. Once you transition to the Community Sector Agreement, the terms and conditions of the new Agreement will apply. Transitioning to the new Agreement will not affect your funding or service deliverables.

Your funding agency will communicate the timing of the implementation of the new Agreement.

Resources to assist you

For more information, or if you have any questions, please contact your funding agency. 

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