$50m staffing crisis: Mass exodus of NDIS workers

The NDIS is buckling as workers quit the scheme in droves, with many care providers collapsing. See who has shut down their services as experts say it’s only going to get worse.

EXCLUSIVE: Up to one in four NDIS workers are quitting each year, substantially increasing costs for some of the highest quality care providers and further undermining the viability of the embattled disability support scheme.

The annual census by the organisation representing providers reveals a quarter of casual staff and 16 per cent of permanent employees left their jobs in 2024.

Of the 264 providers surveyed for the Workforce Census Report, more than 15,300 staff left out of a total of 60,278.

The cost of replacing those staff, which includes the onboarding costs, is estimated to be up to $50 million a year, according to National Disability Services (NDS), which commissioned the report.

In turn that’s increasing the financial pressures on large and established providers.

The annual census by the organisation representing NDIS providers reveals a quarter of casual staff and 16 per cent of permanent employees left their jobs in 2024.

Last week the Catholic-run provider Centacare announced it will pull out of the NDIS in November because it is “no longer financially sustainable” to provide quality care. More than 700 services and 600 staff in Queensland will be affected.

Other big names closing in the last few months include Annecto in Victoria and Forrest Personnel in WA, causing upheaval for thousands of disabled people.

Meanwhile Bedford in South Australia has gone into voluntary administration.

Many other smaller providers have closed recently, raising fears dodgy providers will fill the gaps.

Victorian-based disability provider Gateways Support Services has a staff turnover rate of 16 per cent.

Chief People Officer Georgia Jackson said the organisation had invested heavily in the induction process of new employees, meaning there was a huge cost associated with staff turnover.

“We’ve been able to manage the churn – but the concern is this is only going to get more difficult – and this challenge is expected to intensify,” Ms Jackson said.

NDS chief Michael Perusco said the scheme needs “urgent repair”, starting with a better pricing model that reflects the costs of providing quality care.

The National Disability Insurance Agency (NDIA), running the scheme, caused widespread anger in the sector in June when it announced the fee cap would be frozen again, for the sixth year in a row.

Providers argue it means they are unable to invest in their workforce, resulting in the high workforce churn and the closure of businesses.

“We need urgent repair to the scheme, not just looking at budget sustainability, although that is very important, but also critically, looking at the sort of market of quality providers we want into the future,” Mr Perusco said.

“If participants aren’t able to access quality services. The original intent of the scheme is under threat.”

Health and NDIS Minister Mark Butler is under pressure to repair the scheme. Picture: NewsWire / Martin Ollman

He said the NDS is calling for the independent Pricing Authority, which already sets pricing for aged care residential, aged care home care and hospital services, to also be responsible for the NDIS.

“There’s always going to be a perception of conflict of interest if the NDIA is both managing participant plans, participant budgets and the overall budget of the scheme.”

This week a survey from Health Services Union revealed one in seven workers believe the workforce is not large or stable enough for current and future needs.

The NDIA announced last week that it was running three pilot schemes to ascertain how much it costs to provide quality care.

Originally published as $50m staffing crisis: Mass exodus of NDIS workers