A major disability employment provider supporting more than 6,000 Australians living with disability has told staff it has lost a federal government contract to deliver services in all states except Western Australia.
ABC News understands Maxima employees were told on Thursday that the organisation had lost the tender to continue providing disability employment services through the federal government’s recently-rebranded “Inclusive Employment Australia” (IEA) program.
In a document sent to workers and sighted by ABC News, the organisation’s management wrote that “most” of its disability employment services roles — with the exception of those in WA — would be impacted from November 1 this year.
“Unfortunately, Maxima will no longer deliver IEA services (formerly DES) outside of Western Australia from November 1, 2025, onwards,” the document states.
“Over the coming months, Maxima will provide support to help transition you to employment with another provider should you wish to do so, or support you in your efforts to find alternative employment.”
According to its website, Maxima is a “national, for-purpose, employment services organisation that supports people in their pursuit of meaningful work”.
The website states the organisation, which is headquartered in Adelaide, has more than 400 employees and supports more than 6,000 disability employment services customers across the country.
The announcement to staff was made on the same day South Australian disability support service and employer Bedford flagged it could be forced to enter voluntary administration this weekend.
Bedford said the move could “directly impact 1,400 people with disability across South Australia” but was hopeful the federal government would throw it a financial lifeline.
The organisation, headquartered in Adelaide, has more than 400 employees and supports more than 6,000 customers. (ABC News: Luke Pike)
Maxima clients yet to be told about changes
According to the document sent by Maxima to workers on Thursday, the Department of Social Services (DSS) set an embargo on telling clients and the broader public about the tender outcome.
The document stated the DSS set the embargo “to allow providers to work with their teams without … additional external pressure arising from wider knowledge”.
“We understand that you may need to speak to your family during this difficult time,” the document states.
“We ask that yourself and any person you disclose this information to, refrains from discussing the details with other people outside of Maxima, including customers and employers, during the embargo period.
“Over the following week, we will provide you with the relevant information to share with customers in preparation for the outcome being publicly announced.”
Maxima management wrote that they expected the embargo to lift “within the first week of August”.
“This is still very new information and we had not anticipated this outcome,” the document sent to workers states.
A Maxima spokesperson told ABC News the organisation was unable to comment on the outcome of the IEA tender as it was under embargo by the federal government.
“The outcome of the IEA tender is under embargo by the federal government, so we are unable to comment publicly at this time,”
they said.
“Our other services – Recruitment, Traineeships and Apprenticeships, and Indigenous Employment – continue as usual and are unaffected by the IEA tender.
“We will continue to support our employees and customers and communicate with our customers once the Federal Government embargo is lifted, ahead of new IEA contracts taking effect from November.”
Federal government ‘reforming’ sector
A spokesperson from the Department of Social Services said the federal government was “reforming disability employment services” which “reflect extensive consultation” with the disability community.
“The changes will mean more people accessing services, more tailored support, more accountability and more support for providers. The new program will help an extra 15,000 people with disability across the country find a job that they love,” they said.
“To implement the changes, a competitive, open tender process was conducted to select providers for the next five years. As with any tender, some organisations have been successful and others haven’t.
“There is no reduction of services in any area in the country, including South Australia.”
They said those living with a disability still had access to about 20 organisations under Inclusive Employment Australia.
“This includes an increase in access to providers who have specialist expertise in working with people with particular disabilities or from particular cohorts,” the spokesperson said.
The DSS did not confirm the change but said “people with a disability who are currently supported by Maxima don’t need to do anything just yet”.
“They will be able to choose a new provider in their area that best suits their needs. Support will be available to help with that process, including a dedicated hotline to provide any help that participants need,” they said.
According to the DSS website, IEA is “a new specialist disability employment program” that would support people with disability, as well as those with injury or health conditions, to “prepare for, find and maintain work, and grow their career”.
The website states IEA would replace the current “Disability Employment Program” and would “improve and simplify services for people looking for work”.
“A diverse network of high-quality providers will deliver the new program,” the website states.
“There will be greater focus on providers with staff and leadership reflecting the diversity of their community.”
‘Not the end of Maxima’
According to the document sent by Maxima to workers on Thursday, the organisation was “not closing”.
“We are committed to continuing to deliver DES (disability employment services) in Western Australia, and our recruitment services, group training, Indigenous employment, and labour hire programs — all programs which remain key pillars of our business,” it said.
“While this is a significant and difficult change, this is not the end of Maxima”.