This is the second report of the Market Design and Evolution for Better Outcomes Research Program (also known as the Disability Services National Benchmarking Project). It provides a snapshot of the changes in the financial performance of a Panel of 154 disability service providers (providers) between 2014/15 and 2015/16 as they transition into the National Disability Insurance Scheme (NDIS) A significant proportion of existing providers are not exclusively delivering disability services. That is, they also provide services such as aged care, child protection and other human services. As their activities in other service sectors effects their financial sustainability this report includes data on the overall financial performance of organisations as well as their financial performance from to the provision of disability services.

Key findings: The results show growth in the aggregate financial performance of the cohort examined which is the result of some organisations getting financially stronger and some getting weaker. As this is only the second year of the study, it is too early to determine if the findings are indicative of trends.

This report is funded with assistance from a funding grant offered under the National Disability Research and Development Agenda, jointly implemented by disability representatives from Commonwealth, State and Territory governments.