The objective of this project is to provide advice on appropriate indexation and demand factors for Commonwealth funding to the States via the Commonwealth State Disability Agreement (CSDA). This funding is used to provide accommodation and support services for people with a disability. This report examines the adjustment of funding over time. This adjustment is intended to take account of both changes in the cost of services (price adjustment or indexation) and external factors influencing the demand for services (demand adjustment). The report does not address the issue of the appropriate distribution of funding between jurisdictions, and focuses upon demand adjustment and indexation for the overall CSDA program rather than its sub-components.