Social impact investment

Social impact investments aim to achieve positive and measurable social outcomes alongside financial returns. Learn about our approach to social impact investment, our initiatives and opportunities.

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OSII opportunities

Learn about our current social impact investment tenders open now


Our approach to social impact investment

Social impact investment (SII) is a form of impact investing that provides government with a different approach to addressing social issues in collaboration with the for-purpose (not-for-profit, social enterprises, philanthropy) and for-profit sectors (private investors), through a focus on outcomes.

OSII partners with other government agencies to commission innovative outcome-based programs. Outcome-based approaches include a range of investment structures where a part of the funding is dependent on the achievement of outcomes. These outcome-based contracts are also referred to as Payment-by-Results, Payment-by-Outcome, and Pay-for-Success.

A focus on outcomes supports innovation and provides flexibility to better meet the needs of the individuals receiving support. It also ensures accountability and helps to build an evidence base of what works. 

Our SII approach is supported by 4 core principles: 

Early intervention and prevention

Empowering people to improve the course of their life and reduce the need for avoidable government support.

Innovation

Testing innovative services and building an evidence-base for what works.

Partnerships

Leveraging the strengths of different sectors and sharing risks and rewards. 

Outcomes

Designing, measuring, and paying for outcomes. 


How outcome-based contracts work

Outcome-based contracts enable risk sharing to incentivise innovation, collaboration and better services​.

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Types of social impact investments 

Social impact investments come in many forms. We have facilitated the following types of social impact investments:

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Payment-by-Results contract

Payment-by-Results (PBRs) are outcome-based contracts where a portion of funding is dependent on the delivery of outcomes. They can also be referred to as Payment-by-Outcome and Pay-for-Success contracts.

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Social Impact Bonds

Social Impact Bonds (SIBs) also referred to as Social Benefit Bonds (SBBs), are a financing mechanism that enable service providers to enter outcome-based contracts with government. SIBs raise investor capital to fund service delivery costs and share in the financial risk of service providers achieving the agreed outcomes.

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Blended finance

Blended finance combines different types of capital (such as debt, equity and philanthropic funding).

We are open to exploring alternative impact investment structures. Contact us for further information.

 

Our opportunities

Formal tenders (or Requests for Proposals - RFP) for social impact investments are made through NSW e-Tendering. Learn about our current open tenders, view past tenders and find tools and resources to develop a proposal.
 

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Our initiatives

Since 2013, NSW has been at the forefront of social impact investing in Australia. 

OSII, alongside our partners, has facilitated over 10 investments which have directly supported over 10,000 people through programs aimed at achieving better outcomes for children and families with experience of out-of-home care, reducing recidivism, improving community palliative and mental health care, and reducing youth unemployment and homelessness. 

Learn about our initiatives below.

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Resilient Families

Resilient Families is an intensive family preservation program that works to prevent children from entering out-of-home-care by creating positive home environments. 

Newpin

Newpin is an intensive, centre-based family restoration program that works to safely restore children in out‑of‑home care to their families. 

OnTRACC

OnTRACC (Transition Reintegration and Community Connection) supported parolees to successfully reintegrate into the community following their release from prison and reduce re-offending.

Silverchain

Silverchain is a community-based palliative program that supports people in Western Sydney Local Health District to die in their place of choice and reduce preventable hospital visits.

Resolve

The Resolve program provides recovery-oriented community based mental health support to people living in Western NSW and Nepean Blue Mountains local health districts and aims to reduce preventable hospital visits.

Foyer Central

Foyer Central is a purpose-built accommodation and learning centre that provides young people with experience of out-of-home care with a stable home and tailored, strengths based and 24/7 support to develop skills to lead independent and fulfilling lives. 

Sticking Together Project

The Sticking Together Project supported young people with high barriers to employment to find and maintain employment through a personalised 60-week coaching model.

Home and Healthy

Home and Healthy supported people experiencing homeless and those at risk of homelessness to achieve sustained housing, and improved employment and training outcomes.

Youth Employment Social Impact Program (YESIP)

YESIP supports young people with multiple or complex barriers to employment to develop work readiness skills and achieve sustainable employment.

Momentum

Momentum is a three-step holistic program that supports Aboriginal and Torres Strait Islander peoples in North Eastern NSW to achieve employment, including birth registration and certification, a driver licence program and training and job placement services.

Opportunity Pathways social impact investment (OPSII)

OPSII supports social housing tenants and their household members, Rent Choice recipients and applicants on the NSW Housing Register to gain and retain employment through access to tailored case management support, training, education and employment opportunities. 


Contact us

Address:  52 Martin Place, Sydney NSW 2000

Postal address:
Office of Social Impact Investment
GPO Box 5341, SYDNEY NSW 2001

Knowledge hub

Explore our knowledge hub for helpful tools and resources.

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