What should the basic criteria be for joining the Panel? How much time do providers need before entering into a market to set up their operations? In order to supply DES in a specific ESA what should the requirements be for: a minimum caseload? ESA coverage? A single DES contract for providers Presently, are 573 DES sites that deliver both DES-DMS and DES-ESS services. Providers at these sites were required to tender for each service separately and therefore currently have separate contracts for each service type. In practice, these services are delivered side-by-side by the same staff at the same locations. With a view to reducing the administrative burden for providers, it is proposed that DES providers do so under a single contract covering both current DES-DMS and DES-ESS , with Ongoing Support in the workplace provided to participants who need it. In practice, all providers would need the capacity to supply the current equivalent of DES-DMS, DES-ESS and Ongoing Support. Discussion 7: A Single DES Contract Would all providers have the capacity to deliver DES-DMS, DES-ESS and Ongoing Support under the proposed simplified contract arrangements? Regulation: Reduced A requirement to have only a single contract for a provider delivering DES under both the DES-DMS and DES-ESS services would reduce the regulatory burden on providers. Removing market restrictions The current highly regulated market share allocations mean that providers are guaranteed a proportion of job seeker referrals from Centrelink regardless of their performance. It also means that even high performing providers do not receive new referrals from Centrelink (and participants cannot choose to attend that provider) where the provider’s share of referrals is 30 per cent above their allocated market share. Market share arrangements protect underperforming providers and limit the growth of high performing providers. With the aim of improving the overall performance of DES, one option is to remove market share restrictions in most or all ESAs so that DES providers have more freedom to attract new participants and grow their businesses. Providers would no longer be guaranteed referrals from Centrelink and would need to attract and retain DES participants through the quality and effectiveness of their service delivery. Increasing the strength of the DES market should help drive innovation, competition and choice in DES.
What should the basic criteria be for joining the Panel? How much time do providers need before entering into a market to set up their operations? In order to supply DES in a specific ESA what should the requirements be for: a minimum caseload? ESA coverage? A single DES contract for providers Presently, are 573 DES sites that deliver both DES-DMS and DES-ESS services. Providers at these sites were required to tender for each service separately and therefore currently have separate contracts for each service type. In practice, these services are delivered side-by-side by the same staff at the same locations. With a view to reducing the administrative burden for providers, it is proposed that DES providers do so under a single contract covering both current DES-DMS and DES-ESS , with Ongoing Support in the workplace provided to participants who need it. In practice, all providers would need the capacity to supply the current equivalent of DES-DMS, DES-ESS and Ongoing Support. Discussion 7: A Single DES Contract Would all providers have the capacity to deliver DES-DMS, DES-ESS and Ongoing Support under the proposed simplified contract arrangements? Regulation: Reduced A requirement to have only a single contract for a provider delivering DES under both the DES-DMS and DES-ESS services would reduce the regulatory burden on providers. Removing market restrictions The current highly regulated market share allocations mean that providers are guaranteed a proportion of job seeker referrals from Centrelink regardless of their performance. It also means that even high performing providers do not receive new referrals from Centrelink (and participants cannot choose to attend that provider) where the provider’s share of referrals is 30 per cent above their allocated market share. Market share arrangements protect underperforming providers and limit the growth of high performing providers. With the aim of improving the overall performance of DES, one option is to remove market share restrictions in most or all ESAs so that DES providers have more freedom to attract new participants and grow their businesses. Providers would no longer be guaranteed referrals from Centrelink and would need to attract and retain DES participants through the quality and effectiveness of their service delivery. Increasing the strength of the DES market should help drive innovation, competition and choice in DES.
DES-Reform-Discussion-Paper-November-2016.docx