Modelling of the supported employment population

Supported employment services have been transforming their service models in line with community expectations. This report provides an evidence base supporting several policy options in the move of people with disability to full award wages. It concludes that any government assistance would be far less than the current economic benefits of supported employment to the government and the Australian community, estimated at $225m annually.

It examines four key elements:

• Modelling the current supported employment workforce of 17,000 employees. 
• A wage offset policy, subsidising the gap between current and minimum award wages for employees with disability in open and supported employment.
• A 'social wage' policy, where welfare benefit income is 'deemed' part of an employee with disability’s wage income.
• Refreshing and updating the BuyAbility Economic Impact tool.

If all employer costs for the two wage policy options were provided by government, then the additional annual cost would be:

• Wage subsidy – $165m, including $41m superannuation and workers compensation.
• Social wage model – $82m, reduced by $41m if superannuation and workers compensation are not included in employer costs. 

An interdepartmental subcommittee including all sector stakeholders should be set up by Government to further explore this complex policy matter. The subcommittee should develop a clear roadmap for the transition to full award wages for employees with disability that also ensures ongoing employment options for people with higher support needs.