The literature reveals that Australia is lagging behind other OECD countries in the employment of people with disabilities. Research into employment policy and practice in the disability sector conducted by the Equity Research Centre in early 2008 confirms that education and skill development is a critical component in improving the employment prospects for people with disabilities. However, education and qualifications are not sufficient to ensure that people with disabilities can secure and maintain fulfilling employment. Very little has been documented on the role and impact of Australian employer attitudes and behaviour in relation to the skill development and employment prospects of people with disabilities. Our recent research into employer policy and practice in the disability sector shows that Australian employers can play a significant role in skill deveopment by thinking outside the square. This paper will outline some of the research findings which point the way towards successful employment policies, practices, models and innovations that develop critical employment skills and break down barriers to employment for people with disabilities.