Welfare providers hope to redirect more than 15,000 disabled people in Australia to better job providers.
Approximately 6% of disability employment services programs have been discontinued after a major overhaul, affecting 52 of 104 providers nationwide due to noncompliance.
Yatsukasho will be closed.
Social Services Minister Amanda Richworth said 15,550 Australians with disabilities will be transitioned to better home services, giving them the best chance of finding sustainable and meaningful work.
The integration comes ahead of the Disability Employment Roundtable in Canberra on Monday and the government’s September Summit on Jobs and Skills.
Rishworth said evaluating the performance of DES providers means that only the most effective providers will continue to receive federal funding.
“Underperforming DES providers were given every opportunity to take action for improvement and were aware of the formal review process,” she said Sunday.
Focus on results
“It is important that funds go to organizations that have proven to provide the best support to their participants.”
The inquiry was launched following evidence before the Royal Commission on Violence, Abuse, Neglect and Exploitation of Persons with Disabilities.
The survey found that some providers were not performing well, and some job placements ended abruptly or only lasted for a period of government subsidies.
Francis Sullivan, Chairman of Catholic Social Services Australia, said reforms in the sector were long overdue.
“According to evidence from the Royal Commission, underperforming DES providers seemed more interested in collecting government payments than in finding good long-term jobs for their customers.
“There are many good providers who will hopefully make these reforms, but we are currently seeing a sector that puts the interests of people with disabilities completely at the center of their operations.”
Mutual obligations will be suspended for two months starting Monday to support participants through the transition to the new provider.
About 2.1 million people living with disabilities in Australia are of working age.
However, 93% of unemployed 15-64 year olds with disabilities experience difficulty finding work.
The unemployment rate for people with disabilities is more than double that of working-age Australians.
Employing people with disabilities and reducing employment barriers will be a key component of the September government summit, which will attract more than 100 people from various industries.
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