Major disability employment provider Maxima tells staff it has lost federal funding
ABC News understands Maxima employees were told on Thursday that the organisation had lost the tender to continue providing disability employment services through the federal government's recently-rebranded "Inclusive Employment Australia" (IEA) program.
In a document sent to workers and sighted by ABC News, the organisation's management wrote that "most" of its disability employment services roles — with the exception of those in WA — would be impacted from November 1 this year.
"Unfortunately, Maxima will no longer deliver IEA services (formerly DES) outside of Western Australia from November 1, 2025, onwards," the document states.
According to its website, Maxima is a "national, for-purpose, employment services organisation that supports people in their pursuit of meaningful work".
The website states the organisation, which is headquartered in Adelaide, has more than 400 employees and supports more than 6,000 disability employment services customers across the country.
The announcement to staff was made on the same day South Australian disability support service and employer Bedford flagged it could be forced to enter voluntary administration this weekend.
Bedford said the move could "directly impact 1,400 people with disability across South Australia" but was hopeful the federal government would throw it a financial lifeline.
According to the document sent by Maxima to workers on Thursday, the Department of Social Services (DSS) set an embargo on telling clients and the broader public about the tender outcome.
The document stated the DSS set the embargo "to allow providers to work with their teams without … additional external pressure arising from wider knowledge".
"We understand that you may need to speak to your family during this difficult time," the document states.
"We ask that yourself and any person you disclose this information to, refrains from discussing the details with other people outside of Maxima, including customers and employers, during the embargo period.
"Over the following week, we will provide you with the relevant information to share with customers in preparation for the outcome being publicly announced."
Maxima management wrote that they expected the embargo to lift "within the first week of August".
'This is still very new information and we had not anticipated this outcome,' the document sent to workers states.
A Maxima spokesperson told ABC News the organisation was unable to comment on the outcome of the IEA tender as it was under embargo by the federal government.
"Our other services – Recruitment, Traineeships and Apprenticeships, and Indigenous Employment – continue as usual and are unaffected by the IEA tender.
"We will continue to support our employees and customers and communicate with our customers once the Federal Government embargo is lifted, ahead of new IEA contracts taking effect from November."
A spokesperson from the Department of Social Services said the federal government was "reforming disability employment services" which "reflect extensive consultation" with the disability community.
"The changes will mean more people accessing services, more tailored support, more accountability and more support for providers. The new program will help an extra 15,000 people with disability across the country find a job that they love," they said.
"To implement the changes, a competitive, open tender process was conducted to select providers for the next five years. As with any tender, some organisations have been successful and others haven't.
"There is no reduction of services in any area in the country, including South Australia."
They said those living with a disability still had access to about 20 organisations under Inclusive Employment Australia.
"This includes an increase in access to providers who have specialist expertise in working with people with particular disabilities or from particular cohorts," the spokesperson said.
The DSS did not confirm the change but said "people with a disability who are currently supported by Maxima don't need to do anything just yet".
"They will be able to choose a new provider in their area that best suits their needs. Support will be available to help with that process, including a dedicated hotline to provide any help that participants need," they said.
According to the DSS website, IEA is "a new specialist disability employment program" that would support people with disability, as well as those with injury or health conditions, to "prepare for, find and maintain work, and grow their career".
The website states IEA would replace the current "Disability Employment Program" and would "improve and simplify services for people looking for work".
"A diverse network of high-quality providers will deliver the new program," the website states.
"There will be greater focus on providers with staff and leadership reflecting the diversity of their community."
According to the document sent by Maxima to workers on Thursday, the organisation was "not closing".
"We are committed to continuing to deliver DES (disability employment services) in Western Australia, and our recruitment services, group training, Indigenous employment, and labour hire programs — all programs which remain key pillars of our business," it said.
"While this is a significant and difficult change, this is not the end of Maxima".
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
West Australian
26 minutes ago
- West Australian
Nick Bruining: An over 55s guide to accessing JobSeeker and superannuation before you get the age pension
With Australia's unemployment rate edging up slightly in June, many older people not yet eligible for an age pension will be weighing up their options. That can include using up their savings or tapping into their superannuation to carry them over until the age pension eligibility age of 67. Ceasing employment after turning 60 and not intending to return to work at the time you access your super is a valid 'condition of release' and allows full access to all of your nest egg. One other option is the poorly understood JobSeeker allowance payment from Centrelink. JobSeeker is a means-tested allowance benefit. Allowances are different to pension payments because they are regarded as a temporary support payment to carry you over until you return to paid employment. While the normal JobSeeker payment for a single is $789.90 a fortnight, a single over 55 receives a higher rate of $850.60 if they have been on a JobSeeker payment for nine consecutive months. Eligible couples receive $725.70 each, and as with other income support payments couples are assessed as a single entity under the means test system. JobSeeker payments form part of your taxable income for the year. For those under 60, receiving JobSeeker can also open the door to accessing some of your super before retirement. If you've been in receipt of a Centrelink income support payment for at least 26 weeks, you can apply to have up to $10,000 released from your super every 12 months. Be aware that this withdrawal is taxable. JobSeekers are subject to an asset and income test — but with big differences compared to the age and disability support pension rules. While the asset means test lower limits are identical to the pension figures, once you exceed the limit no benefit is payable. It does not taper down in the same way as a pension. For a single homeowner, the asset test limit is $321,500, excluding the value of the home. For a couple, it's $481,500. Note that Centrelink will accept the second-hand or scrap value for fixed assets, so don't calculate this number based on insured values. Importantly, all money held in superannuation accumulation phase is exempt from means testing until you hit 67. Non-homeowners are allowed an additional $252,000 in assets, whether as a single or a couple. The income test is complex and is calculated in the same way as the age pension. It is not the same as the Australian Taxation Office's method. In essence, if your Centrelink-assessable income exceeds $150 a fortnight, your allowance will start to reduce. The cut-off limits vary considerably based on your family situation, but for many older kid-free Australians, it is around the $1500-a-fortnight mark — and higher once you've been on benefits for more than nine months. Importantly, the 'mutual obligation' requirements for over 55s is quite different to younger recipients of JobSeeker. Mutual obligations require you to demonstrate some activity that makes you job ready. While ideally you'll continue to seek paid employment, you can meet your obligations through other activities such as formal study or approved voluntary work. In both cases, this needs to take up at least 30 hours a fortnight of your time if you are over 60. Between 55 and 60, you must continue to seek work with a maximum of 15 hours doing voluntary work in the first 12 months of unemployment. After 12 months, the same rules for over 60s apply. One important point to note: if you are over 60 and claiming JobSeeker at the same time and not simply doing voluntary work or study, you probably cannot access your super. The rules are, you can access your super once you cease any employment after turning 60. If you don't have a job to cease then, by definition you haven't satisfied this condition of release. Nick Bruining is an independent financial adviser and a member of the Certified Independent Financial Advisers Association
The Advertiser
26 minutes ago
- The Advertiser
Emissions reduction 'central' to boosting productivity
An answer to Australia's languishing productivity lies in its response to the threat of climate change, an independent government advisory body has found. Adapting to growing climate-related risks while also reducing emissions and transitioning to clean energy will enable higher productivity growth and living standards, according to an interim report by the Productivity Commission. The findings come as Treasurer Jim Chalmers prepares to convene a roundtable in search of a solution to the nation's lagging productivity. "Australia's net zero transformation is well under way," commissioner Barry Sterland said. "Getting the rest of the way at the lowest possible cost is central to our productivity challenge." By minimising the costs of reducing emissions through careful policy design, resources would be freed up for more productive activities, the interim report found. It recommended ensuring incentives to invest in technology that can achieve reductions. The Renewable Energy Target and the Capacity Investment Scheme, for example, will not support new investment in renewables after 2030, which means new market-based incentives should be implemented to eventually replace them. The report also recommends incentivising heavy vehicle operators to reduce emissions. Long-overdue reforms to Australia's main environment law would also better protect the natural world by introducing national standards and improving regional planning, while speeding up approvals for infrastructure to make energy cheaper. Though Australia has already set targets to cut greenhouse gas emissions 43 per cent by 2030 and achieve net zero emissions by 2050, the interim report found Australia will face significant climate-related risks regardless of emissions reductions. This means adapting to climate change is integral to growing productivity. The government has been urged to boost resilience to climate perils, which would lower the cost of disaster recovery and help maintain quality of life while Australia grapples with the impacts of climate change. Australians' homes in particular must become better adapted to climate risks, prompting the Productivity Commission to call for a housing resilience rating system and resources to help households, builders and insurers more easily identify upgrades. Dr Chalmers' roundtable will convene later in August and some invited to attend have already called for similar reforms. Former Treasury secretary Ken Henry in July urged the government to overhaul the nation's environment laws or risk Australia missing its most important economic goals. An answer to Australia's languishing productivity lies in its response to the threat of climate change, an independent government advisory body has found. Adapting to growing climate-related risks while also reducing emissions and transitioning to clean energy will enable higher productivity growth and living standards, according to an interim report by the Productivity Commission. The findings come as Treasurer Jim Chalmers prepares to convene a roundtable in search of a solution to the nation's lagging productivity. "Australia's net zero transformation is well under way," commissioner Barry Sterland said. "Getting the rest of the way at the lowest possible cost is central to our productivity challenge." By minimising the costs of reducing emissions through careful policy design, resources would be freed up for more productive activities, the interim report found. It recommended ensuring incentives to invest in technology that can achieve reductions. The Renewable Energy Target and the Capacity Investment Scheme, for example, will not support new investment in renewables after 2030, which means new market-based incentives should be implemented to eventually replace them. The report also recommends incentivising heavy vehicle operators to reduce emissions. Long-overdue reforms to Australia's main environment law would also better protect the natural world by introducing national standards and improving regional planning, while speeding up approvals for infrastructure to make energy cheaper. Though Australia has already set targets to cut greenhouse gas emissions 43 per cent by 2030 and achieve net zero emissions by 2050, the interim report found Australia will face significant climate-related risks regardless of emissions reductions. This means adapting to climate change is integral to growing productivity. The government has been urged to boost resilience to climate perils, which would lower the cost of disaster recovery and help maintain quality of life while Australia grapples with the impacts of climate change. Australians' homes in particular must become better adapted to climate risks, prompting the Productivity Commission to call for a housing resilience rating system and resources to help households, builders and insurers more easily identify upgrades. Dr Chalmers' roundtable will convene later in August and some invited to attend have already called for similar reforms. Former Treasury secretary Ken Henry in July urged the government to overhaul the nation's environment laws or risk Australia missing its most important economic goals. An answer to Australia's languishing productivity lies in its response to the threat of climate change, an independent government advisory body has found. Adapting to growing climate-related risks while also reducing emissions and transitioning to clean energy will enable higher productivity growth and living standards, according to an interim report by the Productivity Commission. The findings come as Treasurer Jim Chalmers prepares to convene a roundtable in search of a solution to the nation's lagging productivity. "Australia's net zero transformation is well under way," commissioner Barry Sterland said. "Getting the rest of the way at the lowest possible cost is central to our productivity challenge." By minimising the costs of reducing emissions through careful policy design, resources would be freed up for more productive activities, the interim report found. It recommended ensuring incentives to invest in technology that can achieve reductions. The Renewable Energy Target and the Capacity Investment Scheme, for example, will not support new investment in renewables after 2030, which means new market-based incentives should be implemented to eventually replace them. The report also recommends incentivising heavy vehicle operators to reduce emissions. Long-overdue reforms to Australia's main environment law would also better protect the natural world by introducing national standards and improving regional planning, while speeding up approvals for infrastructure to make energy cheaper. Though Australia has already set targets to cut greenhouse gas emissions 43 per cent by 2030 and achieve net zero emissions by 2050, the interim report found Australia will face significant climate-related risks regardless of emissions reductions. This means adapting to climate change is integral to growing productivity. The government has been urged to boost resilience to climate perils, which would lower the cost of disaster recovery and help maintain quality of life while Australia grapples with the impacts of climate change. Australians' homes in particular must become better adapted to climate risks, prompting the Productivity Commission to call for a housing resilience rating system and resources to help households, builders and insurers more easily identify upgrades. Dr Chalmers' roundtable will convene later in August and some invited to attend have already called for similar reforms. Former Treasury secretary Ken Henry in July urged the government to overhaul the nation's environment laws or risk Australia missing its most important economic goals. An answer to Australia's languishing productivity lies in its response to the threat of climate change, an independent government advisory body has found. Adapting to growing climate-related risks while also reducing emissions and transitioning to clean energy will enable higher productivity growth and living standards, according to an interim report by the Productivity Commission. The findings come as Treasurer Jim Chalmers prepares to convene a roundtable in search of a solution to the nation's lagging productivity. "Australia's net zero transformation is well under way," commissioner Barry Sterland said. "Getting the rest of the way at the lowest possible cost is central to our productivity challenge." By minimising the costs of reducing emissions through careful policy design, resources would be freed up for more productive activities, the interim report found. It recommended ensuring incentives to invest in technology that can achieve reductions. The Renewable Energy Target and the Capacity Investment Scheme, for example, will not support new investment in renewables after 2030, which means new market-based incentives should be implemented to eventually replace them. The report also recommends incentivising heavy vehicle operators to reduce emissions. Long-overdue reforms to Australia's main environment law would also better protect the natural world by introducing national standards and improving regional planning, while speeding up approvals for infrastructure to make energy cheaper. Though Australia has already set targets to cut greenhouse gas emissions 43 per cent by 2030 and achieve net zero emissions by 2050, the interim report found Australia will face significant climate-related risks regardless of emissions reductions. This means adapting to climate change is integral to growing productivity. The government has been urged to boost resilience to climate perils, which would lower the cost of disaster recovery and help maintain quality of life while Australia grapples with the impacts of climate change. Australians' homes in particular must become better adapted to climate risks, prompting the Productivity Commission to call for a housing resilience rating system and resources to help households, builders and insurers more easily identify upgrades. Dr Chalmers' roundtable will convene later in August and some invited to attend have already called for similar reforms. Former Treasury secretary Ken Henry in July urged the government to overhaul the nation's environment laws or risk Australia missing its most important economic goals.
Perth Now
an hour ago
- Perth Now
Emissions reduction 'central' to boosting productivity
An answer to Australia's languishing productivity lies in its response to the threat of climate change, an independent government advisory body has found. Adapting to growing climate-related risks while also reducing emissions and transitioning to clean energy will enable higher productivity growth and living standards, according to an interim report by the Productivity Commission. The findings come as Treasurer Jim Chalmers prepares to convene a roundtable in search of a solution to the nation's lagging productivity. "Australia's net zero transformation is well under way," commissioner Barry Sterland said. "Getting the rest of the way at the lowest possible cost is central to our productivity challenge." By minimising the costs of reducing emissions through careful policy design, resources would be freed up for more productive activities, the interim report found. It recommended ensuring incentives to invest in technology that can achieve reductions. The Renewable Energy Target and the Capacity Investment Scheme, for example, will not support new investment in renewables after 2030, which means new market-based incentives should be implemented to eventually replace them. The report also recommends incentivising heavy vehicle operators to reduce emissions. Long-overdue reforms to Australia's main environment law would also better protect the natural world by introducing national standards and improving regional planning, while speeding up approvals for infrastructure to make energy cheaper. Though Australia has already set targets to cut greenhouse gas emissions 43 per cent by 2030 and achieve net zero emissions by 2050, the interim report found Australia will face significant climate-related risks regardless of emissions reductions. This means adapting to climate change is integral to growing productivity. The government has been urged to boost resilience to climate perils, which would lower the cost of disaster recovery and help maintain quality of life while Australia grapples with the impacts of climate change. Australians' homes in particular must become better adapted to climate risks, prompting the Productivity Commission to call for a housing resilience rating system and resources to help households, builders and insurers more easily identify upgrades. Dr Chalmers' roundtable will convene later in August and some invited to attend have already called for similar reforms. Former Treasury secretary Ken Henry in July urged the government to overhaul the nation's environment laws or risk Australia missing its most important economic goals.
