Outcomes Contracting

Supporting longer-term partnerships to achieve better results for people and communities.

About Outcomes Contracting

Outcomes Contracting was previously called Relational Contracting. It is a new way of working between government and funded service providers. It supports longer-term partnerships that focus on improving outcomes for people, families and communities.

Outcomes Contracting combines strong relationships, open communication and shared accountability with the use of data and evidence. This helps services respond to changing needs and make continuous improvements.

The approach also strengthens collaboration with local communities. It supports the transition of service delivery to Aboriginal Community Controlled Organisations (ACCOs).

Why it matters 

Outcomes Contracting responds to priorities identified in the Not-for-Profit Sector Development Blueprint and the Community Sector Engagement Framework.

It aims to build a stronger, more sustainable community sector by:

  • focusing on meaningful outcomes for people and communities
  • simplifying funding and reporting requirements 
  • supporting more stable, long-term partnerships between government, service providers and communities
  • using data and evidence to improve performance, guide investment and strengthen services
  • getting communities more involved in the design and delivery of local services.

Where we are up to

The community sector has played an important role in shaping Outcomes Contracting. This has included working with the Community Services Advisory Group (CSAG), as well as broader sector consultation(Opens in a new tab/window) since late 2025.

Feedback from the sector told us:

  • there is strong support for a more outcomes-focused and collaborative approach
  • the approach should be flexible, practical and proportionate, without creating extra paperwork
  • ongoing collaboration is needed to work out the details and put the approach into practice.

This feedback has helped shape key guidance to support Outcomes Contracting implementation. 

What’s next

We are testing and refining the Outcomes Contracting model and supporting materials with a group of community sector organisations across Australia.

This work will help ensure the approach is practical, fit for purpose and supported by clear guidance.

More information

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