Opening doors: better jobs and fairer wages for disabled workers

Overview

This report argues Australia’s disability employment system is not delivering for those who need it most. Despite sustained policy attention and more than $1.3 billion in annual public investment, outcomes remain persistently weak, particularly for people with high support needs. Too many disabled Australians with high needs remain excluded from the workforce altogether, diverted into day programs that substitute for work, or confined to sheltered work at low pay, with little prospect of progression. The employment support system is fragmented and poorly aligned with contemporary policy objectives. 

The report suggests the evidence on what works is clear. In Australia and internationally, better results are achieved when systems prioritise open employment, regardless of level of need. This requires tailored job matching, ‘place and train’ approaches, job customisation, and dedicated pathways from education. The report argues the federal government should systematically embed these features across the Australian system.

Demand-side barriers also remain significant: too few employers recruit, accommodate, and retain people with disability. Shifting employer behaviour requires more deliberate policy action – government should build capability, increase transparency and accountability, and leverage its role as a major employer to create stronger incentives for inclusive hiring. The report makes four recommendations for change.

Publication Details

Copyright
Grattan Institute 2026
Easy read
Yes
Peer reviewed
Yes
Date posted