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Policy News

SDA Update and Overview Resource

NDS has released an overview for SDA Providers of the complex regulatory environment and invites members to join an online SDA reference group.
Policy News
Policy News

NDS calls for delay of Portable Long Service Scheme for community services sector

In its submission to government, NDS argues that the continuing confusion around the Portable Long Service Scheme means a delay is necessary.
Policy News
Policy News

Portable Long Service Scheme to cover all disability services

Draft regulations for the scheme, which originally excluded NDIS-funded activity, include all disability services from 1 January 2020.

Report reveals the impact of potential ADE wage increases

ADE wage impact

29/09/2015

I need to know this because:
  • Find out why ADEs cannot absorb higher wage costs without the loss of a large number of jobs
  • Gain an understanding of the ongoing viability of ADEs
  • Preview data relating to the number of supported employees, wages, ADE expenditure, revenue and profitability
  • See how wage, cost and profitability data can determine the impact of an increase in wage costs on the ADE viability.

A 40% increase in the wages of supported employees would see 85% of Australian Disability Enterprises (ADEs) in deficit, with four in 10 ADEs making losses above $250,000. This is a key finding of a report which NDS commissioned from KPMG.

The report, 'Assessing the impact of increasing wage costs on Australian Disability Enterprises', stress tests ADEs in relation to a range of wage cost increases - from 20% to 100%. It shows that many ADEs currently struggle to be financially viable and that imposing higher wage costs would tip them over the edge. The project collected data from 85 organisations operating ADEs (44% of ADEs nationally employing 57% of supported employees) ensuring a representative sample.

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