Earlier this year, Social Traders delivered a pre-budget submission calling on Federal funding to support ‘A better future through social enterprise’. This was followed by an invitation for key policy influencers to join us at an event in Canberra, to unpack the role of social enterprise in a wellbeing economy.

Last week, Social Traders together with Social Enterprise Australia were invited to the Federal Budget briefing at Parliament House, Canberra. Together, we’ve unpacked how social enterprise has been included in this year’s budget under the headline ‘targeting entrenched community disadvantage’.

This will entail:

• $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, mentoring and online education 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.

“It’s exciting to see social enterprise development included in the Federal Budget. One more step on the journey of making business for good, business as usual. Thank you to the many people over many years who have been part of making this happen.” -Tara Anderson, CEO, Social Traders.

This marks a significant turning point for our sector, as together we highlight the role of social enterprise in contributing to a fairer and more equitable Australia.

Learn more about how social enterprises create meaningful community impacts.