Chapter 29. Provider Performance Framework

29.1. Chapter OverviewCopy citation · §29.1

Provider performance is assessed using the Workforce Australia Employment Services Provider Performance Framework (the Provider Performance Framework) as shown in Figure 29‑A. This chapter describes the Provider Performance Framework, its 4 modules and the licensing standards pre-requisite to receive a performance rating. The Provider Performance Framework is intended to:

• ensure Participants and employers are getting tailored and quality servicing, and

• encourage innovation and drive performance improvement.

Figure 29‑A: The Workforce Australia Employment Services Provider Performance Framework

Source diagram not reproduced ServiceCite note: This is Figure 29-A, showing licensing standards, four performance modules and their measures. The official guideline includes a diagram at this location. ServiceCite has not reproduced or indexed the image because images are excluded from DEWR’s default Creative Commons licence unless otherwise indicated. View the authoritative diagram in the official PDF on page 387. The surrounding guideline text remains searchable.

29.2. Licensing Standards Pre-requisiteCopy citation · §29.2

To qualify to receive a quarterly performance rating against the Provider Performance Framework, Providers must first meet the minimum licensing standards pre-requisite. This is calculated through the Licensing Standards Assurance Score (LSAS) and ensures that Providers meet the standards required to operate.

The LSAS is a demerit-based score for which each Licence starts with a score of 100. Demerits are applied based on results against the following elements:

• Compliance against the Deed, including Guidelines and Supporting Documents; and

• Results from Assurance activities, as undertaken by the Department to review Provider transactions and ensure they conform with Deed and Guidelines requirements.

The LSAS is calculated quarterly prior to the release of performance ratings, and comprised of data released as follows:

• Compliance activities: in the relevant month finalised;

• Targeted Assurance Activities: in the relevant month finalised; and

• The Continuous Assessment of Payment Integrity: on a quarterly basis.

Minimum Standards

• Licensing Standards Met: An LSAS of 95 or above out of 100 ensures eligibility for a quarterly performance rating against the Provider Performance Framework.

• Licensing Standards Not Met: An LSAS below 95 out of 100, is classified as “Licensing Standards not met”. Providers will not receive an Overall Performance Rating for the relevant Licence for that quarter. This result will be displayed publicly on the Department’s website in the ratings table. To support continuous improvement, Licences that do not meet the minimum licensing standards will still receive their performance data through the Qlik App.

29.3. Provider Performance FrameworkCopy citation · §29.3

The Provider Performance Framework is a comprehensive and holistic assessment for each licence of Provider performance across 4 modules. The underpinning performance measures include both quantitative and qualitative metrics and the frequency of assessment varies depending on the type of measure.

The modules and measures may be refined over time with Providers being notified of any changes. Supporting documents provide detailed descriptions of the methodology for each of the measures.

For each licence, a performance rating of High, Moderate or Low is awarded for each measure, then measure ratings are aggregated to determine module ratings of High, Moderate or Low. Module ratings are aggregated to determine overall ratings of High, Moderate or Low – shown in performance reports as HIGH, MOD or LOW.

From 1 January 2026, where a rating is not available the reason is shown in reporting as follows:

• ‘INS’ (insufficient data) - is applied where insufficient data is available to calculate a rating

• ‘NR’ (No Rating) – is applied where a performance measure and/or module has been identified for review

  • when NR has been applied performance measure data may still be released to Providers to support them to manage and improve their own performance.

• ‘Not Reported’ – is applied for new licences that commenced operating from 1 July 2025, while performance data matures.

• ‘NA’ (Not Available) – due to licence specialisation type.

To ensure the Provider Performance Framework continues to drive continuous improvement, regular reviews are conducted of the performance thresholds required to achieve performance ratings for each module and their performance measures.

The performance ratings inform Provider performance treatments, for example a performance improvement plan, and Licence Review decisions. For more information about the Licence Review refer to the Licence Administration Chapter.

(Deed Reference(s): Clause 92)

29.3.1. Overall Performance RatingsCopy citation · §29.3.1

Module ratings for each Licence are used to determine overall ratings as set out in Table 29‑A.

29.3.2. Progress to Employment ModuleCopy citation · §29.3.2

This module assesses the success of the Provider in progressing Participants towards Employment via 2 performance measures:

• Participant Servicing Rate

  A quantitative measure of the extent to which Providers deliver regular services to eligible Participants on their Caseload.

• User Views - Progress

  A survey-based measure of Participant views on whether Providers have improved their chances of finding employment.

The performance measure ratings are used to determine module ratings as set out in Table 29‑B.

29.3.3. Quality of Service to Participants ModuleCopy citation · §29.3.3

This module assesses the success of the Provider in delivering high quality services to Participants via 4 performance measures.

• Service Delivery Assessment – Participants

  A qualitative assessment of each Provider’s quality of service to Participants.

• User Views - Quality

  A survey-based assessment of the Participant experience of the quality of service delivered by each Provider.

• User Views - Tailored

  A survey-based measure focusing on the extent to which Participants agree the support offered by their Provider matches their needs.

• Case Management Assessment

  A qualitative assessment of each Provider’s ability to personalise services to individual circumstances of Participants on their Caseload.

The performance measure ratings are used to determine module ratings as set out in Table 29‑C.

29.3.4. Quality of Service to Employers ModuleCopy citation · §29.3.4

This module assesses the success of the Provider in delivering high quality services to Employers via the Service Delivery Assessment – Employers measure. This measure is a qualitative assessment of each Provider’s quality of service to Employers.

The rating for this measure is also the rating for the module.

29.3.5. Sustained Employment ModuleCopy citation · §29.3.5

This module assesses the success of Providers in their Participants achieving sustained employment outcomes via 4 quantitative outcome rate performance measures.

• 26 Week Outcomes – All Participants

• 12 Week Outcomes – All Participants

• 26 Week Outcomes – Indigenous Participants

• 12 Week Outcomes – Indigenous Participants

Generalist and Ex-Offender specialist Licences receive ratings for all 4 measures. Indigenous specialist Licences receive ratings for the 2 Indigenous Participant measures. Culturally and Linguistically Diverse and Refugee specialist Licences receive ratings for the 2 All Participant measures.

For Licences with 4 measure ratings, the performance measure ratings are used to determine module ratings as set out in Table 29‑D.

High Performance – Exceptions

In the following situations, a Licence that achieves 2 High measure ratings and 2 Moderate measure ratings receives a module rating of Moderate:

• The 2 High ratings are for the 2 – All Participant measures, indicating that the Licence has not achieved comparably high results for their Indigenous Participants.

• The 2 High ratings are for the 2 Indigenous Participant measures, indicating that the Licence has not achieved comparably high results for All Participants.

• The 2 High ratings are for the two 12 Week Outcome measures, indicating that the Licence has not been highly effective at sustaining employment placements for 26 weeks.

For Licences with 2 measure ratings, the performance measure ratings are used to determine module ratings as set out in Table 29‑E.

29.4. Performance ThresholdsCopy citation · §29.4

Each measure has 2 performance thresholds that define the 3 performance ratings:

• The upper threshold is the cut-off between High and Moderate

• The lower threshold is the cut-off between the Moderate and Low

The performance rating for each measure is determined by comparing a Licence’s result against the performance thresholds for that measure.

29.4.1. Annual Performance Threshold Adjustment ProcessCopy citation · §29.4.1

The Provider Performance Framework is designed to drive continuous improvements in performance by adjusting performance thresholds over time, where appropriate.

The thresholds are evaluated annually between April and May each year, Providers are advised of any adjustments for the upcoming financial year in June each year.

29.5. Release of Performance RatingsCopy citation · §29.5

The Department calculates and releases quarterly performance ratings.

29.5.1. Public ReleaseCopy citation · §29.5.1

Overall ratings, module ratings and measure ratings are released on the Department website 1 week after each Provider receives their own performance ratings. In addition, quarterly performance ratings are shared with Services Australia for use in the referral process.

29.5.2. ReportsCopy citation · §29.5.2

To support Providers to manage their own performance, they receive regular reports. Table 29‑F details when performance measure data were first distributed to Providers and the frequency of updates.

29.6. Provider under-performanceCopy citation · §29.6

The Department will work in partnership with Providers to clarify and resolve any issue(s) to help improve performance against all measures in the Provider Performance Framework.

Assessment of Provider performance is ongoing, and Providers must at all times make efforts to improve their performance.

The Department may also undertake a Licence Review to make a holistic assessment of performance. For further information refer to the Licence Administration Chapter.

Provider performance ratings and licence review outcomes help the Department determine when to implement performance management action where performance at the licence level is less than satisfactory.

Action the Department may take, at any time, to address poor performance includes:

• a requirement for the Provider to enter into a Performance Improvement Plan (PIP),

• a reduction in the Provider's business share,

• any other action under the terms of the Deed, including non-extension or ceasing of a licence.

The Department will work with Providers holding licences with conditional extensions.

29.6.1. Performance Improvement PlanCopy citation · §29.6.1

Where the Department determines a PIP is required to address poor performance, including where it results from a Licence Review, the Provider is responsible for developing and implementing strategies to improve its performance. The Department will negotiate the PIP details with the Provider.

The Department will regularly review progress against each of the performance priorities. The outcome of these reviews will inform decisions about whether a PIP will be ongoing or ceased. The PIP will include details of review points and expectations.

Progress against the areas for improvement addressed in a PIP may be a consideration for future licence review activity.

29.7. Periodic Review of Provider Performance FrameworkCopy citation · §29.7

The Department may periodically initiate broader reviews of the Provider Performance Framework to ensure the framework is driving the overall policy intent of the model. Such reviews could result in the Department making changes to the framework, such as adding, removing, or adjusting modules and/or measures and their thresholds.