Disability Services Market in Australia

Agenda

Section 1: Market Understanding

Section 2: Key Focus Areas

Total number of people requiring formal services is expected to grow by 11% reaching a total of
750k by 2026; Growth in Payments to grow at 35% reaching $81bn in the same period
Market Size for the Disability Services Industry
%Share receiving
formal support

20%
Formal ‘20-’23 ‘23-’26

Growth in Participants 15% 11%

800000 750k 90
Informal Growth in Workforce 9% 7% 80
700000 81
80%
600000 Growth in Payments 52% 35% 70
550k
60
500000
Total people with disability - ~3m 400k 50
400000 360k
320k 40
300000 33
250k 30
200000 20
Geographical

100000 9.4 10
Demand

NT - 2%
QLD – 21%
WA – 8% 0 0
SA – 8% 2020 2023 2026
NSW – 34%
Participants Workforce Payment for Service (in $bn)
ACT - 1%
VIC – 23%
Payment per participant has increased from $26k in 2020 to $60k in 2023
TAS - 3%

Key Growth Drivers

Migration from Informal to Formal
With an increase in preference for independent
living and busier family lifestyles, the adoption of
formal services will increase resulting in higher
demand for professional workforce
Increased Network of NDIS
Increased push by the NDIS to improve
awareness of the formal services offering
coupled with increasing their network will
resulting in higher demand from people
Higher Govt Incentives and Push
Giving higher tax rebates on salaries for the
workforce along with organizing upskilling
programme will go a long way in improving
quality of workforce and hence their demand
The service provider market is primarily segregated into registered & unregistered, with each type
providing a broad range of services through NDIS or 3rd party agencies
Service providers can be of any type – an individual, a non-profit, a corporate entity or a govt body – providing some or all categories of service

Types of Service Providers Categories of Services Profile of a Typical Worker

• Registered Service Providers
• These organizations/individuals are
essentially registered with the NDIS
• These providers are seen as more
trustworthy and credible
• They have stricter compliance
requirements and hence can be
audited by the government
8 in 10 work part-time
• Core – Daily Activities: Eating, bathing,
shower etc
• Core – Community: Finding work, group
7 in 10 are female
activities, playing with others etc
• Core – Consumables & Transport:
Grocery shopping, intra city travel etc 6 in 10 aged 44 or under

• Capacity Building – daily activities:

• Unregistered Service Providers
• These providers are not accountable
to the NDIS and hence cannot be
investigated in any way
• They don’t have access to NDIS
managed participants
• They are also not viewed as credible
or trustworthy
Training, upskilling, therapy etc
8 in 10 hold a Certificate
• Capacity Building – other: Vocational III qualification or higher
courses, soft skills, speech improvement
• Capital: Assisted technology devices, 4 in 10 were born overseas
home & vehicle modifications etc

Service Providers interact both with the NDIA as well as plan managers (3rd party agencies) while dealing with documentation of participants
Registered providers account for a majority share of the payments received with the highest share
of payments accounted for by ‘Core Activities’ in Autism
Less than 1 in 5 providers are registered Core activities account of 3/4th of the Autism is covered by the highest number
but account for majority share of invoices payments made to participants of providers in Australia
Capital
3%
6% 13%
41% Capacity - Other Intellectual
Disability
13%
82% 38%
Capacity - Daily
Market Others 15%
Core – Daily Autism
Segmentation 4% Core – Transport Activities
58% 53%
Psychosocial
Core – Community Disability
18% MS
Neurological 14%
21%
Cerebral
Share of Provider Count Share of Payments 5% Palsy
6% 9%
Registered Unregistered

The service provider industry is highly fragmented with the top 8 players accounting for just 10% of the market size

Competitive
$104m $101m $84m $42m
Landscape
(Agency Payments in
2022 for the Top 8 DSP
in Australia)

$41m $40m $38m $26m

High turnover is a key challenge in this industry resulting in lack of quality workforce which is
skilled in various standards set by the government
Key Challenges Facing the Industry Key Government Regulations

Low Pay and Career Opportunities National Standards

• Perception of lower pay relative to other industries like retail Set of six guiding principles devised by Standing
• Career growth opportunities are rare and few Council on Disability Reform in 2014

High Level of Part Time & Casual work

• Part time work resulting in lack of commitment of min. hours

Disability Act 2006
• Casual work not attractive for people above age of 25
Developed a framework for the provision of high
quality services support for people with disability
Limited Access to Training
• Workers reported receiving less than 1 day of training in a year
• This results in lack of required skillset upgradation
NDIS Code of Conduct

Poor Quality Work & Processes Set of guidelines developed by NDIS for
providers, employees and workers
• People feeling burnout due to feeling isolated at job
• High amount of red tape in the registration processes

Low Availability in Remote Locations NDIS Workforce Framework

• Higher cost of delivery due to higher transport cost in far off Set of expectations about attitude, skills &
locations resulting in low service providers knowledge of all the workers funded by NDIS
Agenda

Section 1: Market Understanding

Section 2: Key Focus Areas

Retention and upskilling of the workforce along with identifying the right kind of supply channels
to get quality workforce is critical to grow in this market

• Adoption of formal disability services is going to • Need to evaluate the total count of workforce
increase with increase in independence levels which the target has on record and has staffed
mixed with a busier lifestyle of family members with various service providers

• This will also give a chance for the companies • Analyse their sourcing channels to check for
with higher quality supply to charge a premium Migration from Growth of financial and operational health ensuring
Informal to workforce & sustainable supply for the next 5-10 years
Formal Services supply channels

Market Target
Key Focus
Focussed Areas for the Focussed
Due Diligence

• Current turnover in the workforce is ~20-22% Retention and Plans to enter • The target currently serves only the Victoria
which is 8% higher than other industries upskilling of the into newer market which is only 23% of the Australian
causing unfilled vacancies demand
workforce geographies
• Due to changing regulations and increased • Need to create GTM strategy for entering other
standards for skills, a large number of geographies in Australia to capture some share
applications are unqualified for these roles of the remaining 80% of the market
The End
Sources of Secondary Research
• https://www.disabilitygateway.gov.au/sites/default/files/documents/2021-11/1786-australias-disability.pdf

• https://www.dss.gov.au/sites/default/files/documents/06_2021/ndis-national-workforce-plan-2021-2025.pdf

• https://www.ndisreview.gov.au/sites/default/files/resource/download/building-a-more-responsive-and-supportive-workforce.pdf

• https://www.nds.org.au/images/Policy/National_Disability_Services_Employment_White_Paper_Submission.pdf

• https://www.disabilitygateway.gov.au/sites/default/files/documents/2021-11/1786-australias-disability.pdf

• https://www.nds.org.au/images/resources/Workforce_retention_paper.pdf

• https://www.aihw.gov.au/reports/disability/people-with-disability-in-australia/contents/housing

• https://www.ndis.gov.au/about-us/publications/quarterly-reports/archived-quarterly-reports-2021-22