URGENT UPDATE: The Fair Work Ombudsman has launched a critical inquiry into the disability services sector, revealing that workers are underpaid by an astonishing $17 million every year. This investigation comes amidst rising concerns over systemic exploitation and non-compliance within the industry.
Just announced, the Ombudsman aims to tackle the alarming trend of rule-breaking by focusing on rogue providers. Anna Booth, the Ombudsman, expressed serious concerns over the widespread violations, noting that back-payments for affected workers totaled nearly $68 million from 2020 to 2024.
The inquiry, set to unfold over the next 18 months, will engage directly with workers, clients, and stakeholders to uncover the root causes of these breaches. Authorities report receiving tens of thousands of inquiries and self-reported breaches each year, indicating a pressing need for change.
Key factors driving these violations include small and unregistered service providers, increased labor costs, and financial pressures exacerbated by the rise of digital gig platforms. Workers in this predominantly female workforce are facing rising demand for their services, high levels of casualization, and rapid staff turnover.
Ms. Booth highlighted the vulnerability of migrant workers in this sector, who often hesitate to complain despite having equal rights. The inquiry has been welcomed by the Australian Services Union, which represents disability support workers. Union spokesman Angus McFarland remarked, “It often feels like a ‘whack-a-mole’ exercise with underpayments popping up all over the place in this rapidly growing sector.”
The investigation emerges as the peak body National Disability Services warns of an impending “market failure” due to the National Disability Insurance Agency’s “one-size-fits-all” pricing structure, which has led to significant financial losses for support providers.
The urgency of this inquiry cannot be overstated, as it seeks to address the fundamental issues plaguing the disability services sector. As the investigation progresses, all eyes will be on the outcomes and the potential for systemic change in how disability services operate across Australia.
Stay tuned for further developments as this critical inquiry unfolds.
