Nearly half of Tasmanian community service organisations say they've had to cut some of their services due to a shortage of resources and more financial pressures, according to the Tasmanian Council of Social Service.
The 2026 Tasmanian Community Services Pulse Check surveyed more than 100 organisations across the state.
Sixty per cent said they had to turn people away in the past year and more than 80 per cent said they had experienced greater demand for their services despite their resources not increasing.
The Tasmanian Council of Social Service said, without change, organisations could be forced to cut staff, turn away community, and reduce operating hours.
The industry wants better indexation to help organisations keep up with business costs, and greater funding to match wage increases.
Up to 94 per cent of respondents said they experienced rising costs, and 58 per cent said funding has decreased in the last year.
TasCOSS chief executive officer Paula Wriedt said the community service industry was "in crisis".
According to TasCOSS, community services are one of the largest industries in the state, employing about 28,000 people.
Ms Wreidt said there needed to be an equitable system of indexation.
Jordan River Service runs two Neighbourhood Houses in Gagebrook and Bridgewater, and offers a range of services from material support to social connection.
In the last year, chief executive Mel Best said the service had to cut its men's shed and fruit and vegetable box programs to stay afloat financially.
Program coordinator Kylie Truswell said having to tell people that services were unavailable was tough.