(Cth) Ban Subminimum Wages for Workers with Disability

Download the 1-Page Brief Here - (Cth) Ban Subminimum Wages for Workers with Disability .p

Download P • 159KB

Author: Johanna Soysal  | Publish date: 31/5/2026

• P: In Australia, workers with disability can receive payments below the national minimum wage under the Supported Wage System (SWS). 

• S: The Minister for Employment and Workplace Relations and the Minister for Disability should ask the Fair Work Commission to introduce a phase-out of the Supported Wage System and productivity-based wage calculations by 2034 to lift minimum wages for employees with disability to 100% of the national minimum wage.  

• E: Disability Royal Commission: ‘should … develop a model and pathway to lift minimum wages payable to employees with disability to 100 per cent of the minimum wage by 2034’ and ‘the scheme should include [the] revision of the productivity-based wages calculation’.

Problem Identification: 

Section 284 of the Fair Work Act 2009 (Cth) delegates authority to the Fair Work Commission to establish and maintain a safety net of fair minimum wages. Through this role, the Commission sets different minimum wages for people with disability (PwD) under the Supported Wage System (SWS). 

According to the Fair Work Ombudsman, this means that PwD under the SWS can be paid below the national minimum wage. The Australian Human Rights Commission (AHRC) argued that the SWS is inconsistent with human rights obligations. Jenny Karavolos, Co-chair of the Australian Autism Alliance, has further noted that ‘everyone deserves enough money to live with dignity and participate in society.’

Context: 

The SWS was designed to facilitate access to open employment for PwD by lowering the wages payable to an employee with disability. Fair Work Australia stated that this works by assessing the working capacity of a PwD, which then dictates ‘the percentage of the minimum pay rate for their classification.’ This means ‘someone with an assessed work capacity of 70% is entitled to 70% of the relevant pay rate in their award or registered agreement.’ It is known that the minimum pay rate for PwD covered under the SWS is $3.12 per hour.

Inclusion Australia reported that ‘approximately 20,000 people with an intellectual disability are legally paid less than the adult minimum wage set by the Fair Work Commission — with many earning under $10 an hour.’

Arguments:

People with Disability Australia reported that PwD experience greater financial stress, with roughly 45% living in poverty or struggling financially. According to Inclusion Australia, this is often the result of the SWS. Inclusion Australia noted that ‘it costs some people more to go to work … than they get in the sub-minimum wages they earn.’

The AHRC argued that Australia has a human rights obligation to pay PwD equal wages, in order to uphold their right to work with dignity and equality. They stated that unequal pay 'imposes a discriminatory limit on the exercise of a person’s right to work on an equal basis with others under Article 27(1)(b) of the CRPD.' The National Blueprint for People with Disabilities stated that ‘economic justice for people with disability … [is a] right under international and Australian law … The current system is failing us. We need justice now.’

Professionals Australia and Inclusion Australia questioned the overall effectiveness of the SWS in improving employment outcomes. Disability Royal Commission Chair Ronald Sackville highlighted that Australia has one of the highest unemployment rates for PwD among OECD countries (10% for PwD, as opposed to 4.6% for people without disability). The Australian Council of Trade Unions argued that ‘the unchanging unemployment rate of People with Disability ... suggests supported wage settings have not been successful in enabling sufficient numbers of workers to grow their skills ..., contributing to the entrenched and unacceptable rates of poverty experienced by People with Disability.’ 

A large-scale study by Yin, Seo and Vu (2025) on removing the subminimum wage for PwD in the USA noted that some may be concerned that the SWS provides essential employment opportunities for individuals who might otherwise struggle to find a job. However, their findings reported that SWS elimination ‘occur[red] without measurable adverse effects on overall employment rates or labo[u]r force participation, alleviating concerns about widespread job displacement. The reforms also lead to … higher annual earnings, and a shift away from low-wage service-sector employment.’ 

Advice/Solution Identification:

The Disability Royal Commission called for the development of a model and pathway to lift wages of PwD to 100% of the minimum wage by 2034. According to Darryl Steff, CEO of Down Syndrome Australia, phasing out subminimum wages 'will mean people with disability will finally have the chance to contribute [their] skills and build economic security.'

Precedent:

There is an international precedent for banning subminimum wages. In the USA, 16 states passed legislation to eliminate subminimum wages. 

---

Public Support: 

1. Disability Royal Commission

2. Australian Human Rights Commission

3. Inclusion Australia

4. Down Syndrome Australia

5. National Employment Service Organisation

Economic Justice for People with Disability: A National Blueprint - A group of 12 national disability representative organisations that have explicitly called for lifting the minimum wage of PwD to 100% of the minimum wage by 2034, in line with the Royal Commission's recommendation.

6. Physical Disability Australia                   

7. Community Mental Health Australia

8. People with Disability Australia

9. Disability Advocacy Network Australia

10. Australian Autism Alliance

11. Women with Disability Australia

12. First Peoples Disability Network Australia

13. National Ethnic Disability Alliance 

14. Children and Young People with Disability Australia

15. Australian Federation of Disability Organisations

Broad Support: 

1. Australian Council of Trade Unions - Recommended raising minimum wages for People with disability to 100%, but without a timeline.

Our Fair Go open letter to abolish subminimum wages - Signatories are 294 national, state, and local groups that have signed the letter, demanding ‘It is time for Australia to abolish subminimum wages.’ Listed below are the national organisations, excluding political parties and politicians. However, the Our Fair Go campaign does not adhere to a fixed timeline.

2. Our Fair Go

3. Professionals Australia  

4. The Anti Poverty Centre

5. Australian Catholic University National Student Association

6. Australian Neurodivergent Parents Association

7. Australian Progressives

8. Australian Support Resources

9. Australian Unemployed Workers’ Union

10. Australia’s Voice

11. Blak Sovereign Movement

12. Care @ Home Mobile Physio

13. Community Home Australia

14. Disability Justice Network

15. Disability Providers

16. Disabled Surfers Association of Australia

17. Doctor with Disabilities Australia

18. Evergreen Support Services

19. Family Member Care

20. The Green Institute

21. Insight

22. Inspires & Co.

23. Invictus Health

24. JustUs & Co

25. Marli & Moe

26. Medisa

27. Myplanzz

28. Pathways to Better Living

29. Physical Disability Australia

30. Plan Manage Assist

31. PsychMed

32. Renters and Housing Union

33. Scarlet Alliance

34. Southern Cross Postgraduate Association

35. Tender Loving Care

36. Thorne Harbour Health

37. Tomorrow Movement

38. University of Sydney Disabilities Collective

This list reflects publicly stated positions and should not necessarily be taken as endorsement of this specific brief.

News Coverage:

• The Guardian - “Charlotte’s friends with Down syndrome are paid $3 an hour. It’s legal in Australia - and she’s taking a stand”. This article highlighted the experience of people with Down Syndrome receiving Subminimum wage. By: Stephanie Convery | Fri 21 Mar 2025 - Read the Article here.

• ABC News - “Australian Disability Enterprises can pay workers a fraction of the minimum wage. What place do they have in today's society?” This article reported on the struggles arising from people being paid Subminimum wage. By: Nas Campanella and Evan Young | Sun 29 Sep 2024 - Read the article here.

• The Guardian - “Larry was paid $4.20 an hour in Australia. It’s not enough to live on – but it’s completely legal”. This article highlighted different perspectives of people who receive subminimum wage over whether the SWS is appropriate for PwD. By: Stephanie Convery | Sun 28 Jan 2024 - Read the article here.

• ABC News - “Royal commission hears Australian disability enterprise workers paid as little as $2.50 an hour”. This article reported on ways of transitioning away from SWS. By: Elizabeth Wright and Celina Edmonds | Wed 13 Apr 2022 - Read the article here.

Where to go to learn more: 

1. (2023) Inclusive Education, Employment and Housing | Disability Royal Commission - This document outlined key findings of the Disability Royal Commission, including recommendations surrounding inclusive employment. Recommendation 7.31 of the report explicitly recommended raising subminimum wages for PwD. Read the full report here.

2. (2025) The Labour Market Effects of Subminimum Wage Elimination: Evidence from a National Analysis | Yin, Seo, Vu - This research paper examined the labour market effects of eliminating subminimum wage employment laws for people with disabilities in the US. Includes findings on job displacement, labour force participation, and changes in overall earnings. Read about their research here.

3. (2025) Economic Justice for People with Disability: A National Blueprint | National Disability Organisation - This National Blueprint, created by Australia’s Disability Representative Organisations, demanded urgent action by the Australian Government in critical areas like wages to achieve economic justice. Read it here.

4. (2022) Wage equity and more choices in employment for people with an intellectual disability | Inclusion Australia and People with Disability Australia - This document offered a research review, including the impact and experiences of people with an intellectual disability working for sub-minimum wages. View here.

5. Fair Work Act 2009 (Cth) - Read the full Act here.

Human Perspective: 

Rob is a man in his 40s who works in a warehouse and has Down Syndrome. He started his job of packing orders and operating a forklift 20 years ago with an hourly wage of $2.50. After 5 years, he got promoted to team leader and now also oversees delivery. Now he is earning $5 an hour. Rob knows this is possible only because his award has a Subminimum Wage clause, meaning he can legally be paid below the national minimum wage, as he has Down syndrome. As most of Rob's shifts are 6 hours long, he earns $30 a day, half of which he has to use for his daily commute on public transport. As much as Rob loves the routine and the responsibility of his job, he does not understand why he is getting paid so much less than his colleagues without disability, who are doing the same tasks as him. Rob and his parents were very proud of him when he got his first job, but now they are anxious about his future. It is hard for Rob to be independent as his low wage means he can’t generate savings. This means he has to rely on his parents, disability payments, and institutions that make most decisions for him. Rob would love to have the same opportunities as other hard-working Australians. He wants to be fairly rewarded for his work, so he can save up for his own place, invest money in his future or spend his disposable income how he sees fit. 

To protect the anonymity of those involved, this is a fictionalised account drawn from an amalgamation of real-life stories, experiences and testimonials gathered during the research process for this brief. Any resemblance to actual individuals is purely coincidental.

Conflict of interest/acknowledgment statement: 

N/A

Support 

If your organisation would like to add your support to this paper or suggest amendments, please email Info@foreaustralia.com. 

Disclaimers

Please review all FORE disclaimers here.

Reference list: 

Accenture. (2020). Getting to Equal 2020: Disability Inclusion. https://www.accenture.com/content/dam/accenture/final/a-com-migration/pdf/pdf-142/Accenture-Enabling-Change-Getting-Equal-2020-Disability-Inclusion-Report-1.pdf

Australian Council of Trade Unions. (2023). Workers with a disability (2021 report). https://www.actu.org.au/wp-content/uploads/2023/07/workers-with-a-disability-2021.pdf

Australian Council of Trade Unions. (2024). ACTU Congress: Workers with Disability. https://www.actu.org.au/wp-content/uploads/2023/12/ACTU-Congress-2024-Workers-with-Disability.pdf

Australian Human Rights Commission. (2025). Next Steps in Supported Employment: Consultation on the way forward. https://humanrights.gov.au/our-work/submissions/workplace-rights/next-steps-supported-employment

Australian Institute of Health and Welfare. (2024). People with disability in Australia. https://www.aihw.gov.au/reports/disability/people-with-disability-in-australia/contents/employment/unemployment

Children and Young People with Disability Australia. (2025). Economic Justice for People with Disability: A National Blueprint. https://cyda.org.au/wp-content/uploads/2025/04/Primary-Election-25-NationalBlueprint.pdf.pdf

City of Sydney. (2024). Decision Details: Abolishing Subminimum Wages for Disabled Workers. https://meetings.cityofsydney.nsw.gov.au/ieDecisionDetails.aspx?AIId=18639

Clancey, G., Wang, S., & Lin, B. (2020). Youth justice in Australia: Themes from recent inquiries. Trends and Issues in Crime and Criminal Justice, 605, 1–19. Informit. https://search.informit.org/doi/epdf/10.3316/informit.447563988248416 

Department of Social Services. (2023). Supported Wage System under the Supported Employment Services Award: Assessment Guidelines. https://www.dss.gov.au/system/files/resources/supported-wage-system-assessment-guidelines_0.pdf

Disability Advocacy Network Australia. (2025). Economic justice for People with Disability: A National Blueprint. https://dana.org.au/economic-justice-for-people-with-disability-a-national-blueprint/

Fair Work Ombudsman. (n.d.). Employees with disability pay rates. https://www.fairwork.gov.au/pay-and-wages/minimum-wages/employees-with-disability-pay-rates

Inclusion Australia. (2022). Wage equity and more choices in employment for people with an intellectual disability: Research review. https://www.inclusionaustralia.org.au/wp-content/uploads/2022/04/ADE-research-brief-April-2022.pdf

Inclusion Australia. (2025). Towards full wages for people with an intellectual disability. https://www.inclusionaustralia.org.au/wp-content/uploads/2025/04/Inclusion-Australias-Election-Platform-2025.pdf

JobAccess. (2025). How the Supported Wage System works. https://www.jobaccess.gov.au/wages-based-productivity/how-supported-wage-system-works

People with Disability Australia. (2023). Disability and Poverty: Submission to the Community Affairs References Committee inquiry into the extent and nature of poverty in Australia. https://pwd.org.au/wp-content/uploads/2023/02/PWDASB-2023-Extent-and-Nature-of-Poverty.pdf

Professionals Australia. (n.d.). Professionals Australia Endorses Call to Abolish Subminimum Wage. https://members.professionalsaustralia.org.au/Professionals/News/PA_Endorses_Call_to_Abolish_Subminimum_Wage.aspx

Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability. (2023). Inclusive education, employment and housing (Vol. 7). https://disability.royalcommission.gov.au/system/files/2023-09/Final%20Report%20-%20Volume%207%2C%20Inclusive%20education%2C%20employment%20and%20housing%20-%20Summary%20and%20recommendations.pdf

SOAR. (n.d.). Disability & Wages, Part 2: The Debate Over Subminimum Wages. SOAR Partners. https://www.soar.partners/blogs/disability-wages-part-2-the-debate-over-subminimum-wages

United Nations. (2006). Convention on the Rights of Persons with Disabilities: Article 27 – Work and employment. https://www.un.org/development/desa/disabilities/convention-on-the-rights-of-persons-with-disabilities/article-27-work-and-employment.html

Wang, J. J., & Weatherburn, D. (2018). Are police cautions a soft option? Reoffending among juveniles cautioned or referred to court. Australian & New Zealand Journal of Criminology, 52(3), 000486581879423. https://doi.org/10.1177/0004865818794235

Yin, M., Seo, R., & Vu, H. (2025). The Labor Market Effects of Subminimum Wage Elimination: Evidence from a National Analysis. SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5172698