Investigation launched into Cocoon SDA Care following self-harm, unpaid-worker claims

A registered NDIS business facing damning allegations, including that of a teenager who was injured with a knife, says it is taking action against the National Disability Insurance Agency.

An NDIS business, which claims it won a spot on a list of best places to work in the country, has not paid some of its support workers for four weeks, leaving at least one vulnerable client without suitable care, it is alleged.

An NDIS business, which claims it won a spot on a list of best places to work in the country, has not paid some of its support workers for four weeks, leaving at least one vulnerable client without suitable care, it is alleged.

Cocoon SDA Care, a registered NDIS provider which offers accommodation and support workers for people with a disability, owes workers thousands of dollars.

It comes as it was revealed the organisation was being investigated by the Fraud Fusion Taskforce as well as the Fair Work Ombudsman.

However, in a statement from Horizon SolSolutions Australia Pty Ltd, trading as Cocoon SDA Care, it blamed the National Disability Insurance Agency (NDIA) for delaying payments and said it had “commenced proceedings in the Federal Court of Australia” over delayed payments “owed for the delivery of essential NDIS services”.

“Cocoon SDA Care has formally advised the NDIA that these delays are causing serious and ongoing impacts not only to the organisation but also to third parties, including vulnerable participants and staff,” it said in a statement.

“Given the urgency of the matter, Cocoon SDA Care has requested that the Court consider the case on an expedited basis. The matter is scheduled to be heard by the Federal Court next week.

“As this matter is now before the Court, Cocoon SDA Care will not be making further public comment at this stage.”

One worker, who did not want to be named, said they were owed $6000, and have decided not to work any further shifts until paid.

“I couldn’t keep coming in for free,” they said.

An imaged from Cocoon SDA Care website. Supplied

Another casual worker said she had not been paid since April 1 and was currently owed $5500.

She said her partner was working a second job, and their 17-year-old had got a job to help pay the bills, but they were behind on the mortgage.

“We had to go to the food bank the other day,” she said. “It was embarrassing.”

She claimed Cocoon SDA Care’s deadlines for paying kept coming and going, but had continued working because she “felt bad for the clients”.

“I don’t want to leave them in the lurch,”she said.

Cocoon SDA Care’s website has 600 specialist disability homes across the country and more than 2400 staff.

Cocoon SDA Care’s post on social media. Supplied

Ironically, last month, Cocoon SDA Care claimed it had made it on the list of the Australian Financial Review’s best places to work.

“We’re proud to announce that Cocoon SDA Care has been recognised as one of the Australian Financial Review’s best places to work for 2025,” the business boasted on its Instagram page.

“We are proud to be pioneering exceptional workplace practices and driving meaningful change in the disability support sector.”

So far there have been reports of workers not being paid in Victoria and South Australia and more than 20 Queensland workers have sought help from The Services Union.

“It is absolutely unacceptable that they have been left unpaid, some for more than a month,

while the company continues to promote itself as a ‘best place to work’,” Secretary Neil Henderson said.

He said the union has been supporting members who are now thousands of dollars out of pocket and facing serious financial hardship, including missed mortgage payments and the need to access food relief.

While many have continued working because they want to support their clients, some have been unable to, creating service gaps.

The concerned parents of one teenage girl, who has NDIS funding for two support workers, claim Cocoon SDA Care did not provide adequate care when her regular workers stopped turning up, as they said they had not been paid.

Injuries on the wrist of a teenager who claimed her care was compromised. Supplied

Earlier this week, just one agency support worker turned up for a shift and under his care the girl was allegedly able to access a knife from the kitchen, cut her arm and finger, then run outside and continue harming herself.

The girl, who has complex disabilities including autism, said after she grabbed the knife she couldn’t find the support worker and so went outside.

“I continued cutting myself and people were calling the police on their phones,” the teenager, who was speaking with her mother’s permission, said.

Her mother, who shared photos of her daughter’s injuries, said she was very concerned about her child’s safety.

Injuries on a teenager who was under the care of Cocoon SDA Care. Supplied

Meanwhile, Victorian clients of the company were informed on Thursday that Cocoon SDA Care will merge with Crescent Disability Services.

An email said: “From today, all services, supports, and operations previously delivered under Cocoon SDA Care will now continue under Crescent Disability Services. While the name and administrative structure may change, the people you know, and trust are not going anywhere.”

Cocoon SDA Care did not respond to our requests for comment.

A spokesman for the Fair Work Ombudsman said it will conduct an investigation in relation to Cocoon SDA Care and encouraged any workers with concerns to contact the Fair Work Infoline on 13 13 94 or visit fairwork.gov.au.

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Originally published as Investigation launched into Cocoon SDA Care following self-harm, unpaid-worker claims