More than 700 community organisations touching the lives of Australians by providing care to those in need, will start receiving increased funding.
Organisations helping people with disability, caring for the vulnerable, and working to reduce domestic violence, will get a share in an extra $315.7 million in funding over four years.
The indexation payments are being adjusted in line with changes in the cost of living, to help the organisations manage inflation.
Social Services Minister Amanda Rishworth said the government acknowledged the dedication of Australia's community sector.
"During the election campaign, we committed to supporting a stronger, more diverse and more independent community sector. These commitments are a hallmark of Labor," she said.
"We want to ensure those organisations supporting the Australian community – particularly those experiencing poverty, disadvantage and hardship – can continue to do so into the future."
National Disability Insurance Scheme Minister Bill Shorten said the additional funding would lead to better outcomes for NDIS participants.
"These organisations are on the front line and touch the lives of so many Australians with disability day in, day out," he said.
"Addressing existing service delivery challenges will mean that they can do more of the good stuff."
The Australian Council of Social Service is calling on the government to deliver a cost of living package to help people on low incomes afford their energy bills this summer.
A survey conducted by the organisation, found the majority of people on income support are struggling to cover their energy bills.
ACOSS Climate and Energy program director Kellie Caught said the government needed to take action as the nation faced a summer of extreme heat.
"There was some one-off help delivered in the last federal budget, but this will not be sufficient to help people on the lowest incomes who are facing dramatic increases in housing costs as well as food and energy," she said.
