The Commonwealth Outcomes Fund

The Commonwealth Outcomes Fund is an initiative of the original $199.8 million Targeting Entrenched Disadvantage package announced in the 2023-24 Budget.

The Australian Government committed $100 million to establish the Commonwealth Outcomes Fund to make payments to state and territory governments and directly to service providers and social enterprises based on the outcomes they achieve addressing disadvantage.

The Department of Social Services (the department) will implement the Outcomes Fund. It will operate for up to 10 years to allow time for program development, delivery, achievement of outcomes, and final payments to be made.

A further $5.5 million was committed in the 2024-25 Budget to implement the Outcomes Fund. 

The Purpose of the Fund

The Outcomes Fund aims to reduce disadvantage in Australia through innovation. It will improve the evidence base for social policy interventions and will grow social impact investing in Australia.   

The first projects will commence in 2024-25. Treasury led the co-design of the Outcomes Fund (link is external) and were supported by the department.

Minister Rishworth noted the links between the Early Years Strategy (internal link) and the Outcomes Fund, and highlighted the opportunity the Outcomes Fund gives for innovation in both program funding and the way service providers deliver services.

Focus Areas

The Outcomes Fund has 3 focus areas and reflect the Government’s strategic priorities. The focus areas are designed to provide direction as well as flexibility and allow intersectionality between areas of disadvantage for specific cohorts.

Focus Area Cohort Characteristics

Focus Area 1: Supporting families and children 
Projects under the Fund will support positive outcomes for families and children to prevent cycles of intergenerational and community disadvantage. 

Examples of cohort characteristics include: 

  • children aged 0-5 to support a coordinated approach proposed under the Commonwealth Early Years Strategy 
  • vulnerable young adolescents transitioning to adulthood, especially those leaving the out of home care system
  • vulnerable young adolescents include those who have experienced disrupted and poor engagement with the education system and/or experience of the youth justice system.

Focus Area 2: Overcoming barriers to employment
Projects under the Fund will focus on broadening opportunities to support people, and communities, facing concentrated unemployment through the development of inclusive employment models.

Examples of cohort characteristics include:

  • cohorts living with severe mental illness, other chronic illness and disability
  • people leaving the justice system
  • newly arrived refugees 
  • the gender participation gap
  • young Australians aged 15-24 years considered NEET (not in employment, education or training) 
  • other cohorts who are at risk of experiencing long-term unemployment or barriers to work.

Focus Area 3: Supporting people facing homelessness 
Projects under the Fund will focus on supporting people facing homelessness by improving access to prevention and early intervention services.

Homelessness can be primary, secondary or tertiary in nature, and is experienced differently by different cohorts of Australians.

Examples of cohort characteristics include:

  • vulnerable younger people experiencing homelessness
  • single adults seeking traditional homelessness services in the inner cities
  • younger or older women and those who are parents that might wish to connect or reunify with their children
  • National Priority Homelessness cohorts listed under the National Housing and Homelessness Agreement, including:
    • women and children affected by family and domestic violence.
    • children and young people
    • Indigenous Australians
    • people experiencing repeat homelessness
    • people exiting institutions and care into homelessness, and 
    • older people.

    Expressions of Interest

    The Department will manage the selection of projects under the Outcomes Fund in 3 Expressions of Interest (EOI) rounds that will be open to state and territory governments, service providers and social enterprises. 

    1. The first EOI was open from 28 May 2024 and closed at 5 pm on 16 August 2024.
      It was open to state and territory governments and submissions were expected to include well-developed state-led projects that:
      • achieve outcomes in one or more of the focus areas 
      • align with the purpose of the Outcomes Fund
      • are suitable for social impact investing / outcome-based contracting
      • have agreed and measurable outcomes
    2. The second EOI, in 2025 will invite states and territory governments to apply with a greater emphasis on supporting proposals that take longer to develop and allowing time to develop capability and expertise.
    3. The third EOI will seek proposals from service providers, including social enterprises.

    Further information is available via outcomesfund@dss.gov.au

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