How Are Employers Funded for Hiring People with Disabilities in Australia?

Employment agencies and businesses that hire people with disabilities can access several government-funded supports and subsidies. These are designed to offset costs and encourage inclusive hiring—but, the outcomes don’t always align with fair wages or genuine empowerment.

1. Wage Subsidies (DES & Supported Wage System - SWS)

• Disability Employment Services (DES)
  
  • Funded by the federal government, DES providers help job seekers with disabilities find work.
  • Employer incentives: Businesses can receive wage subsidies
  • 1,500–10,000 for hiring a DES-registered candidate, paid over 26 weeks.
  • Ongoing support: DES providers may also fund workplace modifications (e.g., adaptive tech, ramps).
• Supported Wage System (SWS)
  
  • Allows employers to pay a productivity-based wage (as low as $2.90/hour) if the worker’s disability impacts output.
  • The government subsidizes the gap between the SWS wage and the award rate via the Employment Assistance Fund (EAF).

2. NDIS-Funded Supports (No Direct Wage Payment, but Work Capacity Building)

• NDIS Participants with Employment Goals
  
  • The NDIS may fund work-related supports (e.g., job coaches, transport, mental health support) but does not pay wages.
  • Employment agencies often bill NDIS plans for “capacity building” services (e.g., training, resume help).

3. Australian Disability Enterprises (ADEs) – “Sheltered Employment”

• ADEs are businesses (often charities) that employ people with disabilities at below-award wages (legally permitted under the SWS).
• They receive government grants, NDIS funding for supports, and tax concessions, yet many workers earn <$100/week.

4. Employment Assistance Fund (EAF)

While useful, it doesn’t address structural wage disparity.

Covers costs like:

• Workplace modifications (e.g., ergonomic chairs, screen readers).
• Disability awareness training for staff.
• Mental health support services.

5. State-Based Programs (Varying by Region)

• Examples:
  
  • Victoria’s Wage Subsidy Scheme: Extra payments for hiring disabled workers in priority sectors.
  • NSW’s JobsAbility: Connects employers to disabled job seekers with financial incentives.

2023–2024 Budget Context

Here’s where the money goes:  

1. Disability Employment Services (DES) – $3.1 Billion (2023–2027)

• Employers receive $1,500–$10,000 per hire in wage subsidies (paid over 26 weeks)
• DES providers earn outcome payments (up to $3,700) when a worker stays employed for 6+ months
• 2024 Budget Update: An extra $227 million for "specialist DES providers," but no increase to worker wages  

2. NDIS Workforce Funding – $910 Million (2023–2024)

• Funds support workers (not wages), with $140 million earmarked for "employment pathways."  
• NDIS plans pay agencies for "capacity building," yet workers earn SWS poverty wage  

3. Supported Wage System (SWS) – No Direct Budget, but Enabled by Law

• 80% of SWS workers earn <$8/hour (Disability Royal Commission, 2023)
• Employers get productivity-based wage discounts while receiving DES subsidies.    

4. Australian Disability Enterprises (ADEs) – $200M+ in Annual Subsidies

• ADEs employ ~20,000 disabled workers, many earning <$100/week
• They receive tax exemptions + NDIS funding for support workers

5. Employment Assistance Fund (EAF) – $46 Million (2023–2024)

• Covers workplace modifications (e.g., ramps, screen readers) 
• Just 12% of applications are for wage subsidies (most are for equipment)

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Sources

- [2023–24 Federal Budget: Disability Support]

- [Disability Royal Commission Final Report (2023)]

- [Fair Work Ombudsman: SWS]