Following the federal budget this week, the government has announced more detail on reform of the Disability Employment Services (DES) Program. The initial 2024 budget measures for DES included:

• an additional $227.6 million, allocated over five years from 2023–24, to support the introduction of a new DES program, commencing 1 July 2025
• extending eligibility for the new DES to jobseekers not receiving income support and those with less than eight hours per week work capacity
• removal of the two-year service limit for DES participants
• an increase in wage subsidies per participant of up to $10,000.

The government’s aims for the new DES program are ambitious and reflect its extensive ongoing employment reform agenda, as informed by the:

• White Paper on Jobs and Opportunities
• Disability Royal Commission
• House Select Committee Report on Workforce Australia Employment Services
• NDIS Review.

The extension of DES eligibility to the two additional cohorts is expected to attract an extra 15,000 people to the program annually. NDS has strongly advocated for broader access to DES. Also, DES providers have been advised that the two DES streams will be combined, simplifying administration and “encouraging a stronger focus on individual participant needs”. While we welcome simplification of the program’s administration, NDS will monitor the effect of this measure and if a one-size-fits-all-approach results in adverse, unintended consequences.

The new DES offers intensive and flexible services that recognise the needs of participants and whether they are engaged in other activities, such as work, training and non-vocational supports. NDS strongly supports this measure, since it emphasises better assistance for participants with more complex needs.

A focus on delivering higher quality servicing — via the new quality framework — is intended to ensure increased trust between participants and providers, focusing on the participant’s strengths and goals. NDS will monitor how this is incorporated into the new performance framework in the new DES contract.

The new DES seeks to allow “in employment” support, as required by working participants and their employers, including longer term support for participants who need continuing workplace assistance.

DSS has indicated it is likely there will be a procurement exercise for “a diverse network of specialist providers” to deliver the new program from 1 July 2025. NDS will keep a close watch on which type of market arrangements emerge.

As part of the ongoing DES consultation process, Minster Rishworth and senior DSS staff will be holding a Disability Employment Reform event on Thursday May 23 at the Masonic Centre in Sydney. The Minister will deliver a keynote address on the government’s vision for the new DES and DSS staff will present on the practical elements of a new DES model.

To attend the event (either online or in person), you can register on the Humanitix events page.

NDS and the other employment peaks met recently with DSS to discuss the development of the new Performance Framework for the current DES program. We discussed:

• the progress of work on the regression analysis
• development of an ongoing support measure for the framework
• the inclusion of the “speed to placement” measure and its potential to drive perverse outcomes
• the extent of the use of the framework in the new DES procurement exercise
• the need for a timely release of the framework, given its upcoming implementation date of 1 July.

NDS members can give feedback on the DES reform process to our employment team, either by email or during our Employment Community of Practice for members to be held on 22 May. We will be lodging feedback with DSS on the Performance Framework no later than Friday 24 May.

You can read more about the new specialist employment program on the DSS website, which also has links to factsheets for employers.