The Fair Work Ombudsman (FWO) has launched an 18-month inquiry into the disability support services sector, citing serious concerns around widespread non-compliance with workplace laws. Over the past five years, the FWO has fielded more than 75,000 inquiries and received over 2,500 anonymous reports relating to the sector — which delivers vital services including crisis care, mobility equipment, and employment support, largely funded through the National Disability Insurance Scheme (NDIS).
More than $68 million in back payments were recovered for workers during this period. A significant proportion of these workers are migrants, prompting further concern around vulnerability to exploitation.
FWO Anna Booth stated the inquiry aims to “boost compliance with workplace laws and ultimately drive systemic change,” with interviews and assessments taking place across workers, employers, and NDIS clients. The focus will be on whether legal minimums for pay, conditions, and entitlements are being upheld.
For businesses operating in this space — including NDIS providers, agencies, and contractors — this inquiry represents a pivotal moment. With increased scrutiny and a push toward transparency, ensuring compliance is no longer optional; it’s essential.
What to Expect — 5 Likely Outcomes of the Review
- Increased Enforcement and Audits
Expect greater oversight from regulators, including random audits and follow-up on anonymous tip-offs, particularly in relation to wage compliance.
- Increased Enforcement and Audits
- Systemic Reforms
The inquiry may lead to reforms in award interpretation, record-keeping requirements, and reporting standards, especially for high-risk sectors.
- Systemic Reforms
- Focus on Migrant Worker Protections
Businesses employing migrants must ensure they are meeting all entitlements — underpayments in this group are a red flag for regulators.
- Focus on Migrant Worker Protections
- Uneven Playing Field Pressure
Ethical providers who do the right thing may finally see an evened-out competitive landscape as non-compliant operators are brought to account.
- Uneven Playing Field Pressure
- Increased Demand for Compliance Tools
Employers are likely to turn to technology — like payroll automation and award compliance platforms — to help avoid unintentional breaches.
- Increased Demand for Compliance Tools
As the inquiry unfolds, now is the time for employers to review payroll systems, double-check award classifications, and ensure accurate record-keeping. Workers, meanwhile, are encouraged to understand their rights, check payslips regularly, and speak up if something seems wrong.
This inquiry signals a clear message: compliance in the disability support sector is under the microscope. For providers who want to stay ahead, now is the time to act.
Not sure if your payroll setup is fully compliant? Book a Free Payroll Health Check — a quick video call with our experts to help you identify risks before the regulators do.
