UPDATE: The Fair Work Ombudsman has just announced an urgent inquiry into the disability services sector, revealing that disability workers are being underpaid by $17 million annually. This significant investigation aims to expose exploitation and rule-breaking among providers in a sector already grappling with compliance issues.
This inquiry comes on the heels of alarming reports indicating that $68 million has been paid back to workers between 2020 and 2024 due to widespread non-compliance. Anna Booth, the ombudsman, expressed her “serious” concerns over the findings, highlighting that tens of thousands of inquiries and self-reported breaches flood their office each year.
The investigation targets the root causes of these violations, focusing on small and unregistered providers, escalating labor costs, and the rise of digital gig platforms that contribute to financial pressures. Workers within this predominantly female workforce report high demand for their services, but are often subjected to casual employment, rapid staff turnover, and tight profit margins.
In a sobering statement, Booth noted that migrant workers, who make up a significant portion of this sector, are particularly vulnerable to exploitation. “They often hesitate to voice their complaints, despite having the same rights as other workers,” she stated.
The inquiry has garnered support from the Australian Services Union, the largest representative body for disability support workers. Union spokesman Angus McFarland described the compliance issues as a “whack-a-mole” scenario, with underpayments surfacing continuously in this rapidly expanding sector.
The initial phase of the inquiry will span 18 months and will include consultations with workers, stakeholders, and clients requiring disability support. This comes at a critical time, as the National Disability Services warns that the sector is on the brink of “market failure” due to the National Disability Insurance Agency’s “one-size-fits-all” pricing model, which is leading to financial losses among support providers.
As this urgent investigation unfolds, stakeholders and advocates are urged to stay engaged and informed about the developments that could reshape the future of disability services in Australia. The Fair Work Ombudsman is committed to working collaboratively with industry and government to ensure compliance and protect the rights of vulnerable workers.
Stay tuned for further updates on this pressing issue that impacts thousands of workers and those they support across the nation.
