Community Transport has a significant challenge to the way it supplies services. The funding model is changing with the introduction of CHSP that will see block funding replaced with a $/km payment.
This significant change to the current business model results from block funding that covers all costs incurred by the organisation to receiving compensation only for loaded distances. This challenges the current business model of a “one stop shop” while creating a “buyers’ market” commercial landscape.
The new business model aligns costs with revenue using contracting operational services will ensure survival in the new CHSP landscape.