Commonwealth Outcomes Fund

Establishing the fund

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

The Australian Government committed $100 million to establish the Commonwealth Outcomes Fund. A further $5.5 million was committed in the 2024-25 Budget to implement the fund. The fund will make payments to state and territory governments and directly to service providers and social enterprises. Payments depend on how service providers achieve the fund's goals.

We will implement the fund. It will operate for up to 10 years. This allows time for program development, delivery, achievement of outcomes, and for final payments to be made. 

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

Purpose of the fund

The 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. 

There are links between the Early Years Strategy and the Commonwealth Outcomes Fund. The fund provides an opportunity for innovation in both program funding and the way services are delivered.

We supported Treasury to lead the co-design of the fund. 

The first projects will commence in 2024–25.

Focus areas

The fund has 3 focus areas that reflect the government’s strategic priorities. The focus areas are designed to provide direction and flexibility. They allow for crossover between areas of disadvantage for specific groups of people.

Focus Area 1: supporting families and children

Projects under the fund will support positive outcomes for families and children to break cycles of intergenerational and community disadvantage.

Groups supported by Focus Area 1 include:  

• children aged 0 to 5 to support a coordinated approach proposed under the Early Years Strategy  
• vulnerable adolescents transitioning to adulthood, especially those leaving the out of home care system 
• vulnerable adolescents who have had 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. They will develop inclusive employment models to achieve this. 

Groups supported under Focus Area 2 include: 

• people who live with severe mental illness, other chronic illness and disability 
• people leaving the justice system 
• newly arrived refugees  
• people affected by the gender participation gap 
• young Australians aged 15 to 24 years who are not considered to be in employment, education or training  
• other groups of people who are at risk of long-term unemployment or who face barriers to work. 

Focus Area 3: supporting people facing or experiencing homelessness

Projects under the fund will focus on supporting people facing or experiencing homelessness. They will improve access to prevention and early intervention services. 

Homelessness is experienced differently by different groups of people. 

Groups supported under Focus Area 3 include:

• vulnerable younger people experiencing homelessness 
• single adults seeking traditional homelessness services in the inner cities 
• women who might wish to connect or reunify with their children 
• people listed under the National Housing and Homelessness Agreement, including: 
  • women and children affected by family and domestic violence 
  • children and young people 
  • Aboriginal and Torres Strait Islander peoples 
  • people experiencing repeat homelessness 
  • people leaving institutions and care into homelessness  
  • older people. 

More information

Email OutcomesFund@dss.gov.au.