Recommendation 7.16 – Priorities for inclusion in the new Disability Employment Services model

What has been achieved to date

The Australian Government replaced the Disability Employment Services program in late 2025 with a new employment program called Inclusive Employment Australia (IEA). IEA has been informed by extensive consultation with the sector and Disability Representative Organisations with the aim to better support people with disability, injury or illness find and maintain sustainable employment by delivering high-quality, personalised services.

The tender process for IEA delivered on the key reforms that include:

• improved quality of services and personalised supports to people with disability
• intensive and flexible service streams that will be tailored to individual circumstances
• expanded eligibility to include people with less than 8 hours per week work capacity and volunteers who are not in receipt of an income support payment
• a greater focus on supporting employers to employ people with disability and support them in the workplace, and
• a simplified and increased wage subsidy that will pay up to $10,000 when hiring an eligible program participant to ensure they are well-supported in the workplace.

What the Disability Royal Commission said in the final report

The Australian Government Department of Social Services should ensure that the design of the new Disability Employment Services model:

• is developed using inclusive design principles, and co-designed by people with disability who are employed as paid members of the design team
• adopts customised employment models as a core component of service provision
• ensures funding arrangements facilitate flexible employment supports, such as customised employment, and support the progress of Disability Employment Services participants in achieving employment goals and long-term employment outcomes
• considers options to remove the requirement for a person to have a minimum future work capacity of eight hours a week in order to access the Disability Employment Services program, to facilitate access for all people with disability to the new model.

Australian Government Response July 2024

The Australian Government has announced an additional $227.6 million to implement a new specialist disability employment program commencing on 1 July 2025. The new program will replace the current Disability Employment Services program and help people with disability, injury or illness find and maintain sustainable employment by delivering high-quality, personalised services. The design of the new program addresses key elements proposed in this recommendation.

The new program will focus on improving the quality of services and provide personalised supports to people with disability. It will include an intensive and flexible service that will be tailored to individual circumstances. Providers will assist more people with disability with their employment and career goals through expanded eligibility. An estimated 15,000 additional people with disability will be able to voluntarily access the program each year, including those with less than 8 hours per week work capacity and volunteers who are not in receipt of an income support payment. The new program will benefit employers with access to improved supports to employ people with disability and support them in the workplace. Employers will also benefit from a simplified and increased wage subsidy that will pay up to $10,000 when hiring an eligible program participant to ensure they are well-supported in the workplace.

The Australian Government has undertaken extensive consultation with the disability employment sector to inform the new specialist disability employment program and further consultation will be undertaken on how the new program will work ahead of implementation.

More recommendations

View progress on other recommendations made by the Royal Commission.