Thousands of Australians with disability to be transitioned to new providers as Maxima exits IEA program in all states except WA. Staff informed ahead of public disclosure as federal government embarks on major sector reform. Australia’s disability employment landscape is set for a significant shift after Maxima, a major national provider, announced the loss of its federal contract under the Inclusive Employment Australia (IEA) program.
The change will affect all of the organisation’s operations outside of Western Australia, with over 6,000 clients and hundreds of staff likely impacted. The notification came following a competitive tender process under the federal government’s overhaul of disability employment services.
Maxima confirmed the termination of its IEA services from 1 November 2025, except in WA. The Department of Social Services (DSS) has placed an embargo on communicating the news to clients and the broader public until early August.
Staff Briefed on Contract Loss as Embargo Limits Public Disclosure
According to internal documents sighted by ABC News, Maxima staff were informed on Thursday that the organisation would cease delivering disability employment services under the IEA program—previously known as DES—outside of Western Australia.
Management acknowledged that “most” roles within the affected program areas would be impacted, though support would be offered to help staff transition to new employment. The DSS imposed a communication embargo to allow providers to manage internal discussions before the announcement is made public.
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.”
A spokesperson for Maxima confirmed to ABC News that the organisation could not publicly comment due to the embargo. While Maxima will no longer deliver IEA services nationally, its recruitment, Indigenous employment, apprenticeships, and traineeships programs remain operational and unaffected.
Federal Overhaul of Disability Employment Services Underway
The contract changes come as the federal government implements a broad reform of disability employment services through the IEA program, which aims to offer more tailored support and improve provider accountability. According to the Department of Social Services, the changes followed “extensive consultation” and are expected to assist an additional 15,000 Australians with disability to access meaningful employment.
The DSS noted that while some providers, including Maxima, were unsuccessful in their bids, no reduction of services will occur in any region. “People with a disability who are currently supported by Maxima don’t need to do anything just yet,” a DSS spokesperson stated. “They will be able to choose a new provider in their area that best suits their needs.”
Approximately 20 providers will deliver services under the IEA program, which replaces the former DES framework. These providers are selected for their specialist expertise and commitment to diversity within their staff and leadership. The new contracts are set to take effect from November 2025.
