A new era for disability employment, but will it deliver?
Australia’s disability employment system is set for a major overhaul, with a $5.5 billion reform launching in November 2025.
The new program, Inclusive Employment Australia, will replace Disability Employment Services with a model focused on specialist support, broader access, and stronger accountability. Key changes include expanded eligibility, simplified wage subsidies for employers, and a new national centre to guide best practices.
The Australian Government has unveiled a sweeping overhaul of disability employment services, promising to bring choice, dignity, and accountability back into the job market for people with disability.
At the heart of this $5.5 billion investment is a bold claim: real jobs, for real people, with real support. But for the thousands of Australians stuck in a cycle of underemployment, scepticism runs deep. Will this latest reform deliver?
“People with disability should have the same opportunity as anyone else to participate in the workforce,” — Minister for Social Services Amanda Rishworth, Mirage News, 18 July 2025
A system ripe for change
The Disability Employment Services (DES) system has long faced criticism for prioritising outputs over outcomes. Many participants report that the support they receive is generic and disconnected from their actual needs.
With a new model set to roll out from November 1, 2025, the government says it is resetting — not just tweaking — its approach.
“We want people matched to meaningful, sustainable employment, not just any job,” — Minister for Employment and Workplace Relations Tony Burke, Mirage News, 18 July 2025
What’s different this time?
Specialist support, not tick-box services
Providers will be selected based on proven expertise in working with specific disability cohorts. This includes people with autism, psychosocial disability, acquired brain injury, and others. Each provider will be required to include people with lived experience as part of their service delivery and governance.
Expanded access to services
An estimated 15,000 additional people with disability will be able to access support each year, thanks to expanded eligibility, especially for those volunteering for services or unable to work more than eight hours per week.
Provider accountability
For the first time, performance measures will reflect quality and employment sustainability. Underperforming providers may be replaced, and jobseekers will have more choice over who supports them.
Simplified employer incentives
Employers will benefit from streamlined access to wage subsidies of up to $10,000 per person, as well as reduced administrative barriers, making inclusive hiring more viable.
A new national centre with a big job ahead
The government will also establish a Centre for Inclusive Employment in early 2025 with a $22.1 million investment. Its role? To champion best practice, test new service models, and embed lived experience into employment support design.
The Centre will bring together experts, people with lived experience, service providers and employers to improve the system.
Advocates have cautiously welcomed the announcement but emphasise the need for transparency and ongoing consultation.
From welfare to workforce: A cultural shift
The most radical change this reform proposes may not be policy — it’s philosophy. At its core is a shift from viewing disability employment as a welfare issue to treating it as a matter of equal opportunity and social inclusion.
That requires more than just provider reform. It demands a national conversation about accessibility, inclusive workplaces, and the value people with disability bring to the economy.
Looking ahead
- Launch date: The new program commences on November 1, 2025, replacing the current DES system.
- Transition period: Existing participants — around 245,000 people — will be supported through the shift, with updates sent via phone and email.
- Evidence-driven design: The model has been co-designed through national consultations with job seekers, providers, employers, and advocacy organisations.
The Department of Social Services is now seeking expressions of interest from providers and stakeholders to shape the final implementation.
This reform has been widely welcomed, but the question remains — will the promise translate into lasting change?
If successful, Inclusive Employment Australia could mark a long-overdue transformation: from a compliance-driven system to one that genuinely enables people with disability to thrive in the workforce.
But for now, the sector — and the people it serves — are watching closely.