Federal government public spending of circa $350 billion per annum includes many billions on Band-Aid solutions to problems that require systemic changes to address their underlying causes. The role of governments in enabling a social impact/benefit corporation business structure is as critical to Australian innovation as its support for innovation more broadly.
Further, the absence of support for social impact/public benefit corporations constrains social innovation and increases the public cost of delivering social outcomes.
The 2017 Social Impact Investing Discussion Paper provides a framework for governments to now collectively act to remedy this.
We encourage the Federal Government to catch up to the US, UK and Canada in the impact investment market. By leveraging trillions of dollars globally in private equity the impact investment market is potentially more innovative and impactful than the rest of the innovation and ideas boom combined. It speaks to an increasingly conscious consumer sentiment. And finally, and significantly, it has government spending upsides, including a far less myopic spend and an increased ability to leverage private equity.
Click here to download Impact Seed’s submission to Social Impact Investing Discussion Paper – January 2017
*Table extract: global social impact business incorporation structures Vs Australia: