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 to make payments to state and territory governments and directly to service providers and social enterprises based on the outcomes they achieve addressing disadvantage. 

We 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.  

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. We supported Treasury to lead the co-design of the Outcomes Fund . 

Minister Rishworth noted the links between the Early Years Strategy and the Outcomes Fund. The Minister 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 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. 

Cohort characteristics

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. 

Cohort characteristics 

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 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. 

Cohort characteristics 

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 
  • Aboriginal and Torres Strait Islander peoples 
  • people experiencing repeat homelessness 
  • people exiting institutions and care into homelessness  
  • older people. 

Expressions of interest

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

First round

The first EOI was open from 28 May 2024 and closed at 5 pm on 16 August 2024.  

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. 

Second round

The second EOI, in 2025 will have a greater emphasis on supporting proposals that take longer to develop and allowing time to develop capability and expertise. 

Third round

The third EOI will seek proposals from service providers, including social enterprises. 

More information

For further information, email OutcomesFund@dss.gov.au.