The Andrews Labor Government will explore the use of Social Impact Bonds (SIBs) to address complex areas of social disadvantage in Victoria.
As outlined in the Victorian Budget 2016/17, the Labor Government will examine Social Impact Bonds as a way to introduce, develop and test new programs to tackle serious social issues.
These bonds would allow service providers to explore new approaches to social issues, while investors provide the necessary funding and are paid on the achievement outcomes that have a positive impact.
SIBs have been trialled in the United Kingdom and the United States, and in other states around Australia.
An innovative way to deliver services in some circumstances, the Government will investigate their effectiveness in Victoria, and which areas would be most appropriate for their use.
The bonds would complement other Victorian Government programs and services and would not replace existing services.
To drive reform within the public sector, improvements in service delivery in existing areas will also be considered.
Government departments, including the Department of Treasury and Finance, are currently working together to explore appropriate social policy areas for Victoria’s first SIBs.
Further information on Social Impact Bonds in Victoria is available at: www.dtf.vic.gov.au/socialimpactbonds
Quotes attributable to Treasurer Tim Pallas
“This could be a real way to address serious social issues, while increasing Victoria’s productivity and competitiveness.”
“The Andrews Labor Government is looking to explore new ways to assist some our most disadvantaged Victorians, and help ensure our programs are making a positive impact on the Victorian community.”
“As a modern Labor Government, we are open to new ideas and will see whether they can be effective in Victoria, while also ensuring that the most vulnerable in our community are protected.”