Federal impact investing deal crosses state borders
15 July 2020 at 6:00 pm
The Morrison government is committing $22.3 million to the agreement
Australian states and territories have signed onto a new federal government deal that is aiming to boost the Australian impact investing market to new heights.
Announced on Monday by the federal social services minister, Anne Ruston, the deal sets out how the Commonwealth will work with the states and territories across a range of impact investing projects.
The agreement is backed by $22.3 million from the Morrison government, which includes $8.5 million for outcome payment for projects that support people at risk of homelessness and $8.5 million for outcome payments for projects that support other vulnerable groups.
Sally McCutchan, the CEO of Impact Investing Australia, told Pro Bono News that while the outcomes-based funding had already been earmarked, it was positive to see collaboration happening between the Commonwealth and the states and territories.
“Effective and collaborative implementation of these initiatives takes us towards further development of the impact investing market and better outcomes for people experiencing homelessness and other vulnerable groups,” McCutchen said.
“These complex problems are often not defined by geographic boundaries and the responsibilities in finding solutions are shared by state and territories and the federal government as is the data that informs good decision making.”
With the coronavirus crisis far from over, she added that government investment in projects designed to help vulnerable community members was more important than ever.
“Women and youth along with our First Nations people have been disproportionately impacted at this time,” she said.
“If we are to come through COVID with an Australia that is more economically and socially inclusive we need a new investment mindset that is collaborative and considers impact on people and the environment as well as just financial return.”
The impact investing market has rapidly accelerated over recent years with the value of the Australian market hitting $19.9 billion last year – up from an estimated $1.2 billion at 30 June 2015.