The report is a Commonwealth strategy aiming to create a self-sustaining social impact investing market. The report recognises the need for urgent action during the COVID-19 pandemic and highlights the opportunity to draw together the best of the private, community, and government sectors to address social issues within the Australian context.

Social impact investing (SII) market in Australia

The report identifies SII as a market that has the potential to transform Australia’s social impact investing field. While noting that SII is limited in Australia, the report highlights its increasing demand, with superannuation funds having a vast amount of capital. The report recommends that social enterprises and intermediaries identify superannuation funds as large sources of impact initiatives which could be targeted towards impact investments.

Commonwealth SII strategy: A pathway to a mature and self-sustaining market

The report proposes six recommendations to support the growth of the SII market and its self-sufficiency. The recommendations include a Commonwealth Outcomes Fund, the establishment of an Australian impact investing wholesaler, and an Early-Stage Social Enterprise Foundation to support innovative social entrepreneurs. The report highlights the need for the Commonwealth to appoint an independent institutional advisory body to oversee the implementation of recommendations and ensure that SII becomes a mainstream market.

Establish a foundation to support early-stage social enterprises

The report identifies those innovative social entrepreneurs in the early stages of their journey face numerous challenges. To support early-stage social entrepreneurs, the ASIT report recommends the implementation of an Early-Stage Social Enterprise Foundation. This foundation aims to provide essential support for early-stage social entrepreneurs, embedding a strong and robust social impact vision and practice early in their development.

Establish an Australian impact investing wholesaler

The report highlights that Australian institutional investors’ preference towards ‘traditional’ investment opportunities. To foster an SII market, the report suggests that the establishment of an Australian impact investing wholesaler is necessary. Evidenced by investors’ appetite to increase investment, this wholesaler will attract institutional investors who have committed capital money to the SII market.

Conclusion

The ASIT Final Report is a call to action for a self-sufficient SII that supports vulnerable Australians. By embedding social impact vision and practice into early-stage social entrepreneurs, the Report aims to encourage institutional investors to subscribe to investments that not only achieve financial but also have positive social returns. The report focuses on the challenges and opportunities of building an SII market by providing recommendations to support the development of a mature, self-sustaining and successful SII market in Australia.