Widespread non-compliance puts disability support sector under FWO microscope

The Fair Work Ombudsman (FWO) has launched an inquiry into the disability support services sector, citing serious concerns over workplace compliance.

Fair Work Ombudsman Anna Booth has announced the launch of an inquiry into compliance throughout the disability support sector, citing contraventions that have led to worker back payments of close to $68 million over the past four years.

“We have serious concerns about workplace compliance in the disability support services sector,” Booth said.

“The time is right to look at how we can boost compliance with workplace laws and ultimately drive systemic change.”

Between January 2020 and December 2024, the regulator responded to more than 75,000 inquiries and received 2,500 anonymous reports within the sector. The inquiry will kick off with the regulator carrying out nationwide engagements with stakeholders across the sector.

“Through our inquiry, we will listen, observe, and assess what and who the key influences are in contributing to workplace relations breaches in the sector.

“Once we have identified the root causes of non-compliance in the sector, we can work with key industry partners and government stakeholders in taking action to effectively secure an improved, sustainable culture of compliance with Fair Work laws,” Booth said.

Among issues such as strong demand for disability support services, quick turnover of staff, significant regulatory reform, and lack of resources intertwined with tight profit margins, the regulator pointed towards a heavy reliance on migrant workers as a key platform for workplace contraventions.

“Vulnerable migrant workers are often reluctant to complain. We’d remind them they have the same rights as any other worker in Australia, plus specific protections for their visa if they speak up about exploitation,” Booth said.

“We’re aware that change won’t happen overnight. What we’re looking to achieve, ultimately, is for businesses to find it easier to comply with the relevant Fair Work laws, and to commit to self-reporting non-compliance in the sector; and for workers to have a strong understanding of their rights and obligations.”

Australian Services Union spokesperson Angus McFarland welcomed the “historic” inquiry.

“We stand with underpaid NDIS workers every day. It often feels like a ‘whack-a-mole’ exercise with underpayments popping up all over the place in this rapidly growing sector,” McFarland said.

“So we welcome the resources of the Fair Work Ombudsman being deployed to investigate exploitation in the disability sector.

“People with disabilities deserve nothing less than knowing that every dollar of their NDIS package is being appropriately spent and that their support workers are paid properly for the work they do.

“We need to build a strong and sustainable NDIS where support workers are valued, trained and well remunerated. This inquiry will assist in helping the NDIS reach its potential and promise to the broader community.”

Booth added: “We’re here to collaborate and listen, and we can’t change behaviour across the sector alone.

“The better informed we are, the more able we are to achieve meaningful outcomes for businesses and workers in this critical sector. Our combined efforts will help make a difference.”