Australia’s disability employment sector is set for a shake-up ahead of a national roundtable to be hosted by Social Services Minister Amanda Rishworth in Canberra.
Half the country’s 104 jobs providers for the disabled face being wound back.
Eight are to be closed altogether.
As a result of the cull, more than 15,000 Australians living with disability will be transitioned to more suitable close-to-home services, giving them the best opportunity to obtain sustainable and meaningful work.
“Unfortunately, we have seen a number of poor providers and poor services that have not been delivered,” Ms Rishworth said on Sunday.
“We will be transitioning these services out of the system and making sure people living with a disability get the support they deserve.”
The performance analysis of the sector comes ahead of Monday’s Disability Employment Roundtable as well as the federal government’s September Jobs and Skills Summit.
It will mean only the most effective Disability Employment Services providers will continue to receive commonwealth funding.
The decision follows evidence before the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability.
The inquiry was told some DES providers were not achieving outcomes, with some job placements ending abruptly or only lasting the duration of government subsidies.
To support participants through transitions to new providers, their mutual obligations will be suspended for the next two months starting on Monday.
Almost 2.1 million people living with disability are of working age in Australia.
However 93 per cent of unemployed people aged 15-64 with disability experience difficulties in finding work.
The unemployment rate for people living with disability is more than double that of working age Australians.
