Social impact investing

How it works 

Social impact investing (SII) brings governments, service providers, investors, and communities together to address social policy issues.  

Since 2017-18, $52.7 million has been committed to grow the SII market in Australia. 

SII initiatives 

The following trials inform the government on how to approach the SII market. 

These trials test the effectiveness of different financial models to address social disadvantage: 

These initiatives improve our understanding of how the government can support and strengthen the SII sector: 

Principles for social impact investing 

These initiatives are established in line with Australian Government principles for social impact investing(Opens external website). These principles were developed in consultation with the SII sector. Where the Australian Government is involved in social impact investments, agencies must take into account the following principles: 

• the government's role as an enabler and developer of the market 
• value for money co-design with stakeholders 
• fair sharing of risk and return 
• robust outcomes-based measurement and evaluation, and 
• outcomes that align with Australian Government policy priorities. 

Evaluation of the SII initiatives 

The SII evaluation seeks to answer questions about:  

• the government’s role in building the SII market 
• the effectiveness of outcome-based financial models 
• how to better address entrenched social disadvantage. 

The evaluation will also look at how the SII initiatives: 

• have contributed to the broader SII market 
• have changed the social sector 
• have supported government reforms 
• could help the government address significant social disadvantage could define the government's role in the SII market to: 
  • deliver social outcomes better 
  • strengthen social enterprises 
  • attract private investment. 

Targeting entrenched disadvantage

We are working with Department of Treasury to find innovative ways to target entrenched community disadvantage. 

Learn more about how we are supporting disadvantaged communities. 

Social Enterprise Development Initiative 

The Social Enterprise Development Initiative (SEDI) is helping social enterprises to be more efficient and effective and deliver social benefits to vulnerable Australians. It does this through providing capability building grants, online education and mentoring for social enterprises. 

Learn more about the Social Enterprise Development Initiative. 

Outcomes Fund

The Outcomes Fund provides an opportunity for the Commonwealth to work closely with state governments, service providers and social enterprises to address disadvantage. The Fund will make payments based on the delivery of agreed, measurable outcomes through specific projects.  

Focus areas of projects under the Fund include the needs of children and families, unemployment and homelessness.  

Learn more about the Commonwealth Outcomes Fund.

Get in touch

If you want to contact us, send an email to SocialImpactInvesting@dss.gov.au.