South Australian Multiple Sclerosis not-for-profit MS Society SA and NT has appointed voluntary administrators on Monday, citing “sustained financial pressures” as the reason for its collapse.
A federal government spokesperson said it was “the first the government has heard of them going into voluntary administration”.
“The Department of Health, Disability and Ageing will engage with MS SA and NT for further information,” she said.
Administrator Heard Phillips Lieberenz announced the not-for-profit would continue to operate as its future was assessed.
In a statement, the MS Society SA & NT said it faced pressures that included “changes to the NDIS, the recent outcome of the Inclusive Employment Australia tender, and declining lottery sales”.
Nearly 3000 people living with the chronic disease Multiple Sclerosis in SA and the NT used the society for services including nursing, physiotherapy and occupational therapy in 2023-24, while the society contributed nearly $800,000 to MS research during that time, according to the group’s website.
Administrators said that prior to their appointment, the society employed approximately 70 staff and traded from nine locations.
The society – which assisted those living with the disease that attacks the central nervous system – was founded more than 60 years ago, and appointed administrators from Heard Phillips Lieberenz overnight.
Administrators said they were appointed “following the loss of key income-generating contracts and the inability to find replacement income”.
“This difficult decision was made after careful consideration of the organisation’s financial position and the challenges faced in sustaining ongoing operations,” Heard Phillips Lieberenz founding partner Andrew Heard said.
“The voluntary administration process aims to provide an opportunity to assess all available options, with the goal of minimising disruption to the individuals supported by the organisation.”
The administrators – Andrew Heard and Anthony Phillips – said it was their current intention to “continue to trade the organisation as they work towards strategies to facilitate the urgent assignment, sale or controlled wind down of the organisation’s services”.
“The administrators are working with MS Society and Multiple Solutions offices across Adelaide to endeavour to minimise impact to service delivery and to explore every possible option to retain vital support services for people in South Australia and the Northern Territory living with multiple sclerosis,” Heard said.
“Outcomes from these negotiations will be announced in the coming weeks.”
The society only recently appointed a new CEO in December last year – Shaun Kennedy – who was touted as an “experienced social sector leader” with “extensive executive experience across private enterprise, government and not-for-profit sectors, with expertise in NDIS service delivery and social advocacy”.
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In its most recent annual report for the year 2023-24, former chair Kerry Sanders – who stepped down this month according to her LinkedIn profile – said the company had a “tough year financially due to several different factors”.
“The most significant factor was the loss of our home lottery program,” she said.
“The cost-of-living crisis has impacted our other fundraising programs and lowered the financial performance of Multiple Solutions’ program.”
In that year, the company posted an operating loss of $1.6 million, compared to a $843,085 surplus the year prior.
Total income for the year was $16 million, including $5.7 million from fundraising activities. At the time, the society’s balance sheet was described as “healthy” with net assets of $5 million.
The administration follows the almost-collapse of South Australian disability support services company Bedford.
Bedford was rescued from entering voluntary administration earlier this year after the state government stepped in with a $15 million rescue package.
McGrathNicol was appointed as restructuring advisers reporting directly to Bedford’s board and chief executive Myron Mann resigned from his position.
The company is the second-largest employer of people with a disability in Australia, and at the time said it would have appointed voluntary administrators after spending a year attempting to decouple the organisation from reliance on NDIS funding models.
Last week, Premier Peter Malinauskas said in state parliament that the organisation’s financial position was “even more dire than what we first misunderstood”.
He also said residents living in Bedford’s Balyana site in Clapham had until “at least the second half of 2025” to leave the accommodation.
Malinauskas said the government support package stopped Bedford Industries from entering voluntary administration and an expected rapid liquidation of Bedford’s assets, “directly impacting Bedford’s supported independent living clients”.
[SRC] https://www.indailysa.com.au/news/just-in/2025/09/23/sas-multiple-sclerosis-society-in-turmoil
