Social Impact Investing Program Evaluation

Goal of the program

The SII Program aims to inform the Australian Government of its role in: 

• building the SII market 
• the effectiveness of outcome-based financial models in addressing entrenched social disadvantage.  

The SII Program is funded to 2026-27, with a 3-phase evaluation approach planned: 

• Phase 1 — synthesis of evidence from the SII Program early stages 
• Phase 2 — analysis of the outcome commissioning experience, SII payment models and the role of partnerships 
• Phase 3 — Overall evaluation of the SII Program at the conclusion of the SII Trials.  

Insights from the SII Program are contributing to a broader approach to focus on outcomes achieved through programs and policies. 

SII Program First Phase Evaluation Report

The SII Program First Phase Report recognises the positive impact of the SII program on Australia’s emerging SII sector, and: 

• provides an evidence-base for the 4 SII Program initiatives 
• provides insights and information of interest to the SII sector 
• outlines opportunities for government to support ongoing initiatives and SII policy development, including: 
  • the Outcomes Fund and the Social Enterprise Development Initiative, announced as part of the Targeting Entrenched Disadvantage measure in the 2023-24 Budget 
  • any new policies supporting the social enterprise sector and outcomes-based funding models. 

The key lessons and insights from the first phase evaluation fall into 3 domains: 

• Commissioning outcomes – insights into government processes, capacity, limitations and challenges in the areas of data, appropriate skillsets and innovation 
• Building the market – lessons and insights into both limitations and opportunities regarding scale and capability development 
• The role of government – providing greater understanding of the systemic constraints and challenges across government, and the benefits of partnerships with states.