NSDEP 2025: From Tender to Take-off
The disability employment sector is undergoing significant change as the New Specialist Disability Employment Program (NSDEP) rolls out. With shifts in contract allocations, service models, and market share, providers need to prepare now to ensure a smooth transition.
To support the sector, Prospert partnered with Disability Employment Australia (DEA) to host the NSDEP 2025: From Tender to Take-off webinar. Featuring Peter Bacon, CEO, DEA and Paul Diviny, Founder and Director, Prospert, and moderated by Renee Hancock Senior Consultant, Prospert, the session attracted interest from 270+ industry leaders eager to understand how to navigate the new program.
If you missed the session, here are the 10 key takeaways every provider needs to know.
1.Contract announcements are imminent – prepare for every scenario
The department may issue contract offers in late February/early March 2025, giving providers 10 working days to negotiate, accept, and begin implementation their plans should they be successful. While the exact timeline remains uncertain, particularly with the possibility of a federal election, it’s crucial that organisations have clear internal strategies for different outcomes.
Peter Bacon emphasised the importance of internal communication and planning, noting that some providers will win, some will lose, and most will experience a mix of both. Staff, stakeholders, and participants will need reassurance and a clear understanding of what comes next.
2. Market share shifts will reshape the sector
With fewer providers per region, competition will tighten, and caseloads will increase significantly. Metro areas will see provider numbers drop from an average of 13.5 to 5.6 per region, while regional areas will decrease from 5.1 to 3.4. This will place greater pressure on providers to scale up while maintaining service quality.
According to Peter, “The average provider caseload per metro ESA might be moving from 321 to an average of 748—so more than double”.
Providers will need scalable service models and large, diverse employer networks to handle the increased demand for sustainable employment.
3. Site locations need to be finalised now
Providers must confirm their office locations as soon as possible. The Department may allocate caseloads based on confirmed provider locations, meaning delays in securing premises could impact a provider’s ability to operate efficiently from day one.
Peter stressed the urgency of this step: “The quicker you can get your sites lined up and communicate that to the department, the better, because it was going to make their challenge in allocating caseload slightly easier.”
Providers expanding into new ESAs should begin engaging with local networks and community partners to establish a presence before contracts commence.
4. Employer engagement must begin before July 1
A significant provider reshuffle means many employers may lose long-standing provider relationships, while others will need to build new ones. Engaging employers early will be essential to maintaining trust and ensuring continuity for participants.
Paul advised providers to keep employers and community partners informed: “Any employer or community partner that you refer to in your bid, you should be keeping them in the loop as a matter of course. It doesn’t need to be a huge amount of effort put into it, but they will be naturally curious to see how you went. And it’s just good courtesy to do that.”
5. Managing change internally is just as important as compliance
NSDEP isn’t just a contract change – it’s a fundamental shift in reporting, service delivery, and workforce structures. Staff will need to adapt to new caseload expectations, different funding models, and revised KPIs. Ensuring that internal change management is prioritised will help prevent confusion and disengagement.
“Functions are going to change, service delivery models are going to change, even your reporting and your financial budgeting has to change, because the contract is different, it’s not just the same old, same old,” said Paul.
Providers should ensure their teams fully understand the implications of the new model before it takes effect and implement clear communication strategies to support staff through the transition.
6. Participant transitions must be handled with care
Up to 70% of participants may be required to change providers, creating a significant risk of disengagement. If not handled well, this could disrupt participant progress and weaken employment outcomes. Providers must prioritise smooth handovers, clear communication, and participant-centred transitions.
Peter stressed the importance of making this process as seamless as possible: “One really key thing there is if you can work with the incoming provider to try and make that as smooth as possible—you know, maybe some sort of three-way appointments, some good handovers, make sure that all your notes are really, really well done, really up to date—that’s very, very important so that [participants] are not feeling like they have to start again and that they need to tell their story again.”
Providing participants with clear information about their rights, service options, and transition timelines will help minimise confusion and anxiety.
7. New service delivery models will require a fresh approach
With the introduction of two distinct support streams – Intensive and Flexible – providers must rethink how they allocate staff, engage participants, and structure their service models to drive outcomes.
Peter highlighted that providers will be incentivised to keep participants engaged and progressing, making a one-size-fits-all approach ineffective.
“I think providers are going to be quite incentivised to make sure as much of their caseload is activated in the Intensive phase as possible. And with new progress fees for things like work experience and education, there’s a better incentive to work with the entire caseload and keep them moving forward,” he said.
The funding model now rewards progress, not just placements, so services must be structured to support skill-building, work experience, and long-term employability.
8. Performance metrics and quality frameworks are still evolving
While the new performance and quality frameworks have been introduced, they are still being refined. Providers should expect ongoing adjustments to KPIs, funding benchmarks, and quality assessments as the program progresses.
Tracking internal data and engaging with DEA and government updates will be essential for providers to stay ahead of any changes. “The sector must be ready to adapt,” said Peter. “We’re advocating for providers to have clarity on how performance will be measured from day one.”
9. Staff must be upskilled in employer and community engagement
With a renewed focus on employer engagement, providers will need to strengthen staff capabilities in job carving, reverse marketing, and in-employment support. Community engagement will also be critical in building referral pathways and ensuring holistic support for participants.
“The role of a DES consultant is changing,” said Paul. “It’s not just about finding a job – it’s about keeping employers engaged and ensuring long-term job sustainability. Providers must train their staff in job carving, employer outreach, and community engagement to stay competitive.”
To support providers through this transition, Prospert offers industry-leading employer and community engagement learning programs, equipping teams with the practical strategies, engagement techniques, and confidence needed to thrive in this new contract environment.
10. Collaboration will be key to success
With fewer providers per region, cooperation rather than competition will lead to better participant outcomes. Providers should explore ways to share employer engagement efforts, collaborate on workforce training, and develop joint community partnerships.
“This isn’t a ‘winner takes all’ scenario,” Peter said. “Providers need to think differently – collaborate on employer engagement, co-train staff, and support each other. A stronger sector means better outcomes for participants.”
DEA has offered to help facilitate provider connections in target regions, allowing organisations to establish collaboration early. By leveraging DEA’s support, providers can build regional networks and ensure a smooth transition for participants, employers, and staff.
Final thoughts
As the disability employment sector prepares for NSDEP, the key to success will be early preparation, strong partnerships, and a clear focus on participant needs.
Peter summed it up: “The disability employment sector has achieved incredible results, with workforce participation for people with disability rising from 52% to over 60% in just five years. The NSDEP transition is a challenge, but it’s also an opportunity to make an even bigger impact.”
The time to act is now.
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