According to the annual Australian Community Sector Survey, only three per cent of the 1470 organisations surveyed in 2022 - spanning homelessness, mental health and family violence services - said their main service could always meet demand.

Monash University professor of social work Dr Philip Mendes told ACM social security payments were not adequate so "somebody else makes up those costs".

"What often happens is that NGOs that provide emergency relief housing, food, clothing, whatever, they in part meet the costs... families of people struggling meet the costs... somebody has to make up the costs if the government doesn't," he said.

"It's often the problem is not only that alternate sources have to meet the costs but inevitably a lot of people fall in a crisis and that may result in long term entrenched problems; homelessness, mental health, prison, which actually costs double or triple more than the initial cost would have been in providing payments."

The Community Sector survey found that in 2020, when social security payments were boosted by the Coronavirus Supplement, the number of community service organisations that reported they could 'always' meet demand for their main service jumped to 19 per cent.

That figure dropped to six per cent in 2021 after the supplement was withdrawn.

The 2022 Poverty in Australia snapshot reports temporary income support payments introduced during the pandemic shifted 646,000 people, including 245,000 children, off the poverty line.

While the federal government has not committed to any permanent increase in social security, some strides have been made towards a review of payments.

In November, the federal government, arguably prompted by independent Senator David Pocock, announced the Economic Inclusion Advisory Panel, which will be led by the treasurer and social services minister, and bring together experts, advocacy groups and peak bodies.

There is also the current Senate inquiry into poverty in Australia. A report is expected to be prepared as a result of the inquiry by October next year.

The 2022 survey also found that of the 180 housing and homelessness services examined, none said they could 'always' meet demand, and one in 10 services said they could 'never' meet demand.

Of the nearly 1500 organisations surveyed, 61 per cent of service providers reported increased poverty and disadvantage among their clients and 64 per cent reported that clients' needs were increasingly complex.

Australian Council of Social Services (ACOSS) deputy CEO Edwina MacDonald said the government relied on the community services sector to serve the public on its behalf.

"It is clear that community services are experiencing something unprecedented. Intensifying financial pressures on top of disasters are really affecting people and overly straining providers this Christmas," she said.

"The challenges of demand, complexity of need, poverty and disadvantage, combined with the past decade of chronic underfunding, are pushing community services beyond breaking point, and that cannot be tolerated."

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A spokesperson for the Department of Social Services said the government had "been clear" that it will consider the rate of income support payments at each Budget.

"The Australian Government is committed to building a social security system safety net that protects vulnerable Australians, and ensures no one is left behind," the spokesperson said.

"More than 4.7 million Australians received a much-needed boost to their social security payments in September 2022 to help ease cost of living pressures. This represented the largest indexation increase to payments in more than 30 years for allowances and 12 years for pensions.

"Around one million young people, carers and students are set to receive a boost to their social security payments when indexation increases take effect on 1 January 2023."

The spokesperson also said the government had committed millions of dollars towards recovery efforts in partnership with state governments to respond to floods around the nation.

On December 18, the government announced more than $10 million in additional funding to emergency and food relief providers.

"This is in addition to over $50 million provided to 196 emergency relief providers and $1.4 million to the three food relief providers each year," the spokesperson said.

"It is also separate to the $560 million over four years to 2025-26 for additional support to eligible community sector organisations, including $257.7 million to the Department of Social Services, to help meet the higher costs of delivering services, as announced in the 2022-23 October Budget."