Responsibility: Australian Government
Response: Subject to further consideration
Status: Subject to further consideration
What has been achieved to date
The Government is working to strengthen the sector to increase the range of high quality, well-paid employment opportunities for people with disability, and to create more pathways into open employment at full Award wages. These initiatives include expanding eligibility for Inclusive Employment Australia to include people with disability with the lowest work capacity, and providing Structural Adjustment Fund grants for the supported employment sector.
The Department of Social Services (DSS) is committed to engaging with people with disability with high support needs, the sector and the broader community, on discussing how we can collectively transition to a sector that offers inclusive employment options to people with disability with high support needs.
DSS held an initial consultation period between 25 March and 22 June 2025. The public was invited to make submissions in response to a discussion paper, ‘Next Steps in Supported Employment: Consultation on the way forward’. The paper outlined questions on the future of supported employment, relating to Recommendations 7.30 to 7.32.
Subminimum wages are currently authorised through the Supported Wage System (in both open and supported employment settings), and through special classifications under the Supported Employment Services Award. The independent industrial relations tribunal, the Fair Work Commission (FWC), continues to be responsible for making, reviewing, and varying modern awards, including setting wage rates and classifications, through consultation with affected parties.
What the Disability Royal Commission said in the final report
a) The Australian Government should introduce a scheme to ensure that employees with disability are paid at least half the minimum wage. The scheme should include:
- revision of the productivity-based wages calculation to accommodate the move to a new minimum amount of 50 per cent of the current minimum wage
- a provision for the Australian Government to subsidise employers for the difference between the wages payable under the relevant award or enterprise agreement and the new minimum wage until 2034.
b) A review of the scheme should be undertaken by the Disability Reform Ministerial Council after five years of operation.
c) The Australian Government should use the results of the review to develop a model and pathway to lift minimum wages payable to employees with disability to 100 per cent of the minimum wage by 2034.
Australian Government Response July 2024
The Australian Government requires further consultation with a range of stakeholders before committing to broad reform for supported employee wages. The Disability Royal Commission commissioned research and modelling into the impacts and costs of the proposed wage increase, with modelling indicating there could be significant job losses for people with disability being paid supported wages.
Consultation will require a strong focus on the impact of implementation on supported employees, as outlined in the Royal Commission’s Final Report.
The independent industrial relations tribunal, the Fair Work Commission (FWC) is responsible for making, reviewing, and varying modern awards, including setting wage rates and classifications, through consultation with affected parties. The most recent review of the Supported Employment Services Award 2020 was handed down in December 2022 following extensive consultation over several years.
More broadly, work is underway to strengthen the supported employment sector (as outlined in response to Recommendation 7.30). One of the goals of this work is to increase the range of high quality, well-paid employment opportunities available for people with disability.
More recommendations
View progress on other recommendations made by the Royal Commission.