From 1 July 2019, the indexation rate for service agreements is based on a 20% weighting of the Perth Consumer Price Index (CPI) plus an 80% weighting of the Western Australian Wage Price Index (WPI), which has resulted in an overall increase in the indexation rate for non-government community services. The 2023-24 indexation rate is 4.51%. The price index used is the latest available actual data for the Perth CPI and Western Australian WPI as published by the Australian Bureau of Statistics.
The objectives of the Indexation Policy are to provide:
- increases to service agreement prices over the life of a service agreement to assist in addressing cost increases
- transparency and consistency in the level of indexation across community services service agreements
- administrative simplicity in the application of the Policy
- consistency of the rate of indexation with the public sector wages policy and commercial contracting practice
