Latest news with #InclusiveEmploymentAustralia
ABC News
6 days ago
- Business
- ABC News
Disability job service Forrest Personnel closes amid 'non-viable' federal reform
A disability employment support service will be closing its doors after 40 years of helping people in regional Western Australia. The federal government is replacing the current Disability Employment Program with a new program called Inclusive Employment Australia from November 1. Forrest Personnel chief executive Lynne Harwood said the new contracts offered under Inclusive Employment Australia had made ongoing operations unviable. "The new tender has variables to it that make it non-viable and non-sustainable from our perspective," she said. The not-for-profit service has a head office in Bunbury, 170 kilometres south of Perth and has thousands of clients throughout South West, Great Southern, Wheatbelt, Goldfields-Esperance and south-metro areas. At the heart of Forrest Personnel's decision is the introduction of market share percentage caps as part of the Inclusive Employment Australia program, according to Ms Harwood. Market share caps limit the proportion of the market a single provider can control to encourage competition and avoid monopolies. Ms Harwood said the market share caps were intended to tackle market saturation in metropolitan areas, but their application to regional areas would instead squeeze out local providers. "Going forward, for-purpose organisations can only be sustainable if they're very large, and that's into the hundreds of millions of dollars or very boutique and niche. Anything in between becomes very difficult," she said. In a statement, a spokesperson for the federal Department of Social Services said there would be no reduction of services in any area of the country, including WA. "People with disability in Western Australia will be able to access services from 17 different organisations funded across the state," the spokesperson said. Steven Twigger has been supported by the not-for-profit for the past 15 years, which helped him get a job with the Bunbury tour company Go West Tours. "They come to see me if I need anything," he said. Mr Twigger was unsure of what the closure would mean for him. Ms Harwood said national, for-profit providers were at an advantage and ready to fill the market gaps created by the upcoming reforms. South West Autism Network chief executive Nick Avery said larger companies with centralised operations were not ideal for remote and regional communities. "It makes it much harder to access support services in the region if you're operating at a national level. "There's just not enough boots on the ground." The Department of Social Services said people with disability and currently supported by Forrest Personnel did not need to do anything "just yet". "They will be able to choose a new provider in their area that best suits their needs," the spokesperson said.
ABC News
25-07-2025
- Business
- ABC News
Major disability employment provider Maxima tells staff it has lost federal funding
A major disability employment provider supporting more than 6,000 Australians living with disability has told staff it has lost a federal government contract to deliver services in all states except Western Australia. 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".
