HIPPY FY26/27 Annual Program Budget FAQ

1.    How should I prepare the FY26/27 Budget for May 14 submission?

This year we are requesting sites to submit a six-month budget.

Budget period: 1 July 2026 to 31 December 2026

Deadline: 14 May 2026

Budget template: The six-month budget template is available on LMS, or via this link.

This approach reflects:

•    Feedback from sites

•    Alignment to sublicence and funding agreements

Please use the budget template when preparing your July – December 2026 Budget.

Ordinarily, HIPPY site providers would be asked to submit a full-year budget by 14 May, covering anticipated costs for the entire financial year (1 July 2026 – 30 June 2027). However, through recent conversations and feedback, a number of sites have shared that preparing a full year budget at this point would be particularly challenging, given the current level of uncertainty.  We want to acknowledge that feedback and reassure sites we value your voices in shaping our approach to this year's budget submission process.

At present, sites have been issued with a sub licence and funding agreement through to December 2026 only. This reflects the ongoing renegotiation between the Brotherhood of St Laurence / HIPPY Australia and the Department of Social Services (DSS) regarding the next HIPPY contract and associated funding arrangements.

In response to both this context and the feedback received, we have decided to take an adjusted approach. Rather than requiring a full FY26/27 budget at this stage, we are asking all sites to submit a six month budget only, covering the period July 2026 to December 2026. 

Once there is greater certainty about arrangements beyond December 2026, we will provide further guidance and request a subsequent budget from sites for January 2027 to June 2027 to complete the FY26/27 budgeting process.

2.    What budget amount should HIPPY sites work to when preparing six-month budgets for July – December 2026? 

You can refer to your HIPPY Sublicense and Funding Agreement (Schedule 5) for this information.  

For most sites, the funding for this period is as follows: 

•    Block Funding Jul-Nov 2026: $117,048. Exclusive GST 

•    Block Funding Dec 2026: $39,091. Exclusive GST 

Important: We encourage all sites to review their HIPPY Sublicence and Funding Agreement prior to preparing their budgets, as the funding for some sites may differ slightly.

3.    Is there a template I can use for my six-month budget?

Yes. A template has been created to support your budget planning.

You can access it on LMS on the ETO page, or download the template via this link.

Please use this template as a guide when preparing your July – December 2026 Budget. You are required to upload budget information into ETO.

Please refer to the ETO Guide page 59, Section 11.3 for additional information on how to submitting your budget via ETO.

4.    What if I can’t get my budget completed and submitted by the due date?

As part of the Sublicence and Funding Agreement, sites must submit their Annual Program Budgets by 14 May 2026.

Your organisation's Sublicence and Funding Agreement includes key dates for financial reporting. 

These dates can also be found here.

If sites are unable to meet this deadline, the Site Advisor should be contacted as early as possible to discuss next steps. 

5.    Why do the HIPPY Sublicence and Funding Agreement and Financial Year budgeting not line up?  

We understand this may create confusion for sites, given that the current Agreement ends in December 2026. 

This is mainly due to:

•    The program operates on a calendar year

•    The financial reporting follows the financial year

•    Current HIPPY Sublicence and Funding Agreements run until December 2026

This creates a funding gap between January 2026 and June 2027 (the second half of the financial year) that is not covered by the Agreement.

We are exploring ways to align Sublicensing and Funding Agreements and budgeting to reduce confusion and help sites align their reporting periods. 

Any changes will depend on the duration of the new contract with the Department of Social Services.

6.    We are a newly onboarded HIPPY provider partner. Our organisation submitted a budget for the Jan – Dec 2026 period as part of the Expression of Interest (EOI) process in 2025. Do we need to submit another budget? 

Yes. All HIPPY sites, including new partners, are required to submit a July–December 2026 budget as part of the current budgeting process. 

The July–December 2026 budget serves as a formal financial function to support financial governance, accountability, and fiscal oversight under the current sub licence and funding arrangements.

It is used to:

•    confirm expected expenditure during the funded period,

•    support accurate cashflow and funding management, and

•    ensure consistency and equity across all HIPPY sites.

For this reason, earlier EOI budgets cannot be carried forward or relied upon for this purpose. 

While new partners submitted budgets in 2025, those budgets were prepared specifically for the Expression of Interest (EOI) process. The purpose of the EOI budget was to demonstrate organisational readiness and the anticipated cost of service delivery. As such, those budgets may not always reflect the full or final operating picture required for active program delivery that would now be better understood by your organisation. 

Submitting a July–December 2026 budget ensures that all sites are working from the same baseline and that financial planning reflects current operational arrangements. 

We appreciate the additional effort required and thank our new partners for their cooperation and care in supporting strong financial stewardship across the program.

7.    Can potential FY25/26 surpluses be part of the FY26/27 budget? 

No. Potential surpluses must not be part of your Annual Program Budget. 

Budgets should only include:

•    confirmed HIPPY funding

•    confirmed in-kind contributions

A separate surplus process will be shared later.

It is understandable that sites may develop an early estimates of a FY25/26 surplus. However, this estimate may change as income and expenses are finalised.

For this reason, sites should include only confirmed HIPPY funding and any in-kind contribution provided by their organisation as income.  

A surplus process, consistent with that applied in FY24/25, will be implemented, and the relevant terms and conditions will be communicated to sites in due course. 

8.    What costs can be treated more efficiently without affecting the program’s core operations?

BSL/HIPPY Australia recognises that funding has not increased in line with rising costs driven by inflation. As a result, the program now requires a more agile and more adaptable approach to managing expenditure while maintaining the integrity of core service delivery. 

The following outlines optional guidance around areas where efficiencies may be achievable, noting that the potential impact on overall cost savings will vary by site. 

Cost reductions sites may consider:

•    Gatherings and promotional costs: 

These expenses are generally more flexible and may be reduced or scaled back with minimal impact on core program delivery. However, savings in this area alone are unlikely to result in significant overall cost reductions.

•    Professional development:

Meaningful savings may be achieved by prioritising free or low cost professional development opportunities, particularly those available online. This may include webinars, sector based learning platforms, and internal or peer led learning opportunities. Where external training is required, sites may also consider lower cost providers or shared training arrangements.

•     Materials & resources and travel costs: 

These costs are directly related to the number of families engaged and are therefore difficult to reduce without impacting service delivery. However, efficiencies may be achieved by ordering materials for both 2026 and 2027 as early as possible, which is expected to reduce freight costs associated with rising fuel prices.

•    Property and office costs: 

These are largely fixed costs, determined by the number of HIPPY staff employed. Some efficiencies may be realised by relocating to lower-cost premises or by sharing office space with another program within the organisation.  

•    Overhead costs:

While any reduction in overheads is welcomed, we recognise that opportunities for savings in this area can be limited. Where overhead costs exceed 15% of total funding, the excess must be offset through an in-kind contribution from the organisation. For example, if the budget includes $60,000 overheads where the maximum allowable is $40,000, the additional $20,000 must be provided as an in-kind contribution to ensure the budget remains balanced

•    Line Manager costs: 

Line management costs are treated in the same way as overheads, with an allowable allocation of up to 0.1 - 0.2 FTE, provided this does not exceed the $20,000 cap.