The federal budget and social enterprise

Last week, the Australian Government announced its budget.

For those working to ensure all people, places and the planet thrive, all of what the Government chooses to spend on, and not spend on, matters. 

But in the lead-up to the budget, the social enterprise sector went to the Government with a specific offer and ask. We said:

Australia faces social, environmental and economic challenges that demand new responses.

The social enterprise sector can help.

However, because social enterprise sits between traditional business and charity, many fall through the gaps in the supports that exist.

We seek a social enterprise national strategy to change this that is:

• Powered by a genuine partnership between the Sector and Government.
• Challenge-led, focusing on national priorities where social enterprise can make a significant contribution.
• Underpinned by data and certification.
• Incorporates social procurement, access to finance, outcome payments, and capability building.

Together with so many of you, we have and will continue to talk to the Government across portfolios about these things.

Funding in the released federal budget, under the headline 'targeting entrenched community disadvantage', speaks to some of this. It includes:

• $11.6 million over 3 years for the Social Enterprise Development Initiative
• $100 million over 5 years to establish an Outcomes Fund
• $64 million over 6 years to deliver place-based initiatives in partnership with local communities and state and territory governments for disadvantaged children and their families
• $16.4 million over 4 years to capture data to inform long-term policy to tackle intergenerational disadvantage
• $7.8 million over 2 years to develop a framework guide how the Government will work with communities to build their capability to address cycles of disadvantage

The Social Enterprise Development Initiative and the Outcomes Fund are particularly key for the sector.

The Social Enterprise Development Initiative will be managed by the Department of Social Services. It is intended to expand, learn from and replace the Sector Readiness Fund. Of the $11.6 million allocated, $1.6 million will be for the administration and management of the Initiative. $10 million will be for grants, online education and mentoring for social enterprises to build capability to access capital, better participate in the social impact investing market, and support improved social outcomes. It will be co-designed with the sector.

The Outcomes Fund will be managed by Treasury, with support from the Department of Social Services. It will establish a partnership between the Commonwealth, state and territory governments and social enterprises to tackle entrenched disadvantage. There is a commitment to co-design it with stakeholders, specifically state and territory governments, but not naming any others at this stage.

In the context of the federal budget, these are modest spends. They are also significant. They are spends into the social enterprise sector and ones with the potential to do things differently.

While there's much work to do to fully realise the potential of these, a pause is warranted to mark this shift.

So many have worked over decades to get us to this point. Doing the work in enterprises. Researching, funding, investing in, and providing other forms of support for social enterprise. Growing understanding within Government. Sharing information and learning together. Advocating for change.

Thank you, to all who made this happen.