Nearly half of Tasmania's community support organisations said they've had to cut services due to financial pressures, according to new data from the Tasmanian Council of Social Service (TasCOSS).
The 2026 Tasmanian Community Services Pulse Check surveyed more than 100 organisations across the state.
Sixty per cent said they had to turn people away in the last twelve months and more than 80 per cent said they had experienced greater demand for their services despite their resources not increasing.
The Tasmanian Council of Social Service (TasCOSS) said, without change, organisations could be forced to cut staff, turn away community, and reduce operating hours.
The industry wants better indexation to help organisations keep up with business costs, and greater funding to match wage increases.
Industry 'in crisis', TasCOSS says
Up to 94 per cent of respondents said they experienced rising costs, and 58 per cent said funding has decreased in the last year.
TasCOSS chief executive officer Paula Wriedt said the community service industry was "in crisis".
She said state government funding hadn't kept up with service costs.
"There's only so long that that can keep going until there are flow-on effects to our health system, to our justice system, to other parts of government that we may not anticipate," she said.
According to TasCOSS, community services are one of the largest industries in the state, employing roughly 28,000 people.
Ms Wreidt said there needed to be an equitable system of indexation.
"Three per cent doesn't even match some of the wage increases that have either come in already or are anticipated to come in in the future," she said.
Services cut for cost reasons
Jordan River Service runs two Neighbourhood Houses in Gagebrook and Bridgewater, and offers a range of services from material support to social connection.
In the last year, chief executive Mel Best said the service had to cut its men's shed and fruit and vegetable box programs in order to stay afloat financially.
It also shortened its opening hours to four days a week.
"This community in particular often loses services. We see transport services, public transport decreasing," she said.
Program coordinator Kylie Truswell said having to tell people that services were unavailable was tough.
"It's not a nice feeling; you don't want to turn anyone away or refuse to be able to provide food," she said.
"We have a lot of people come in, and they'll come in looking for food relief, free items.
Funding levels to be reviewed by 2028
A spokesperson said the Tasmanian government "understand that costs are rising, which is exactly why the latest state budget invested more than $650 million into community organisations across Tasmania".
"There is a near $600 million investment into housing and homelessness services to put a roof over Tasmanians' heads when they need it most, and $235.4 million is available for electricity concessions."
The spokesperson said the government was "working with the sector to progress longer-term funding agreements, and we are committed to reviewing the level of indexation to provide certainty, in 2027-28".
The Labor Opposition has called on the government to provide a sustainable funding model for community services.
"Every dollar the government fails to invest early will turn up later, and at far greater cost. In child safety, hospitals, homelessness services, police stations and the justice system," community services shadow minister Jess Greene said.
The Greens and Franklin Independent MP Peter George have also criticised the government.
