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Victorian Government commences with tendering accommodation and respite services

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9/01/2018

The Victorian Government has confirmed that, in 2018, it will commence a formal tendering process of Government accommodation and respite disability services to non-government providers.

This follows an Expression of Interest (EOI) process in which non-government providers demonstrated strong interest and the capacity to meet strict evaluation criteria. Organisations that were successful in the EOI process will be eligible to formally tender via a ‘Request for Proposal’ (RFP) process. These organisations can expect to receive further information from the Government about this process, as well as access to data to be provided to RFP participants to support them in responding to the RFP.

Minister Martin Foley has also announced that the Government has reached agreement with the Health and Community Service Union (HACSU) on a transition package for the consideration of the Supported Independent Living (SIL) and Short Term Accommodation Assistance (STAA) workforce.

Key elements of the package include that, in the first stage of the transition from 1 January 2019, DHHS employees will be seconded to non-government providers for two years. In the second stage, from 1 January 2021, workers will be offered direct employment with their wages and conditions protected until 31 December 2025. Over this period, ongoing employees will receive a 29 per cent wage increase, a $2,000 lump sum sign-on payment, and a $15,000 transfer payment for those who choose to transfer. Approximately 500 redundancy packages will be available until 1 January 2019. Read more details of the arrangement here.

The Victorian Government will provide subsidies to providers which have been successful in their response to the RFP, in order to ensure they are able to meet these new conditions. NDS understands that the level of these subsidies will depend on the nature of a provider’s RFP response.

NDS will continue to engage with the Victorian Government about its tendering process, the details and implications of its agreement with HACSU, and the potential impacts on the quality of services, availability of workforce, and development of the NDIS market.

Contact information
Liza Brown-Pinsky, Policy and Project Officer, 03 8341 4309,