Living in Canberra is so expensive that community workers helping the most vulnerable are barely able to survive, the ACT Council of Social Services says.
Essential workers in the ACT, which includes people employed in the community sector, are spending up to 78 per cent of their income on rent, the council said.
Two thirds of surveyed community groups said it had become more difficult to attract and retain staff in the ACT, a report by the Australian Council of Social Services found.
The group is calling for more funding for community service groups, reporting an extreme increase in demand for services.
More than four in five ACT community sector groups surveyed said funding did not cover the full costs of service delivery and 38 per cent said it was harder to secure funding compared to previous years.
Nearly 70 per cent has seen an increased demand for their services, and almost half reported there were more people seeking help whom they were unable to support.
More people working full-time are asking for help with food and rent, ACTCOSS interim CEO Dr Gemma Killen said.
"Our colleagues are seeing increasing numbers of clients in full-time work who cannot afford to keep a roof over their heads and food on the table," she said.
"The community sector in the ACT is struggling to meet demand as many individuals and families struggle with increased levels of poverty and distress.
"Cost-of-living increases over the last few years and a spiralling housing affordability crisis have meant more and more people are turning to the community sector for support.
"Without adequate funding to sustainably staff our organisations, vulnerable community members are being turned away.
"Despite the challenges, we know the community sector, when well resourced, is best placed to address disadvantage in Canberra. We are ready to partner with the ACT government to ensure the community continues to receive appropriate, supportive and sustainable care."
The federal council is also calling for JobSeeker and Youth Allowance to be increased up to $76 a week. The minimum JobSeeker payment is $346 a week, and Youth Allowance starts at $166 a week.
The government has not accepted a recommendation to raise welfare payments.
The social services council wants Commonwealth grants and contracts to fund the full cost of service delivery, including infrastructure, management, workforce development and admin costs.
The group is also calling for stage 3 tax cuts to be abolished. The proposal would end the 37 per cent marginal tax bracket, decrease the 32.5 per cent marginal tax rate to 30 per cent and increase the 45 per cent marginal tax rate threshold to $200,000.
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