We were pleased to see two key funding initiatives in last night’s Federal Coalition budget related to outcomes-based funding – the announcement of a social impact investing Taskforce and nearly $15M for payment-by-outcomes investments over the coming four years.
Of the $14.6M ($14.1M net) funding allocation, $3M is to be expended in the coming financial year but the bulk of it isn’t due to be spent until the years 2021-22 and 2022-23.
The Budget Papers tell us that this funding will be targeted to:
“…three social impact trials in the social services sector…’ and, specifically, for‘…initiatives that increase the workforce participation of people who receive income support payments.’
In addition to the $14+M, $5M is to be expended in the 2019-2020 financial year to establish a taskforce within the Dept of Prime Minister & Cabinet to examine the Commonwealth’s role in this emerging market, ‘…including how these investments can provide solutions for entrenched disadvantage’.
These investments are welcome indicators of the Government’s interest in this area. Particularly encouraging is the reference to using these tools to shift entrenched disadvantage.