NSW Policy

Deliver more social impact investment transactions

As part of the policy, we aim to deliver two new social impact investment transactions to market every year. This section contains information on the process for 2015, including requests for proposals, guidance on developing proposals and the Government's priority areas for social impact investment. More tools to help you develop and implement transactions are also available.

Request for proposals (RFP)

The second RFP for social impact investment transactions closed on 15 February 2016. While open to proposals in any policy area, the RFP identified two preferred policy areas:

  • managing chronic health conditions
  • managing mental health hospitalisations.

An interagency panel is now evaluating all proposals received through the RFP. We expect to notify proponents of the outcome of their proposal in June 2016.

The first RFP for social impact investment transactions closed on 26 July 2015 and successful proponents were announced on 20 November 2015. The first RFP identified two preferred policy areas:

Social impact investment principles

We have developed Australia's first social impact investment principles. The principles identify and explain what we are looking for in social impact investment proposals to the NSW Government. They also seek to reduce costs associated with developing proposals.

The principles are not limited to social benefit bonds and can be adapted to suit any social impact investment transaction seeking NSW Government involvement. They apply equally to proposals for social services and those that include social infrastructure or assets.

As part of its Social Impact Investment Policy, the NSW Government intends to regularly call for proposals for social impact investment transactions. Proposals that consider and incorporate these principles are more likely to be selected for further development. During a formal request for proposals process, this document should be read with any tender documents also available.

The Office of Social Impact Investment thanks everyone who provided feedback on the consultation draft of the principles released in early 2015.

Statement of Opportunities

The NSW Government will periodically identify its priorities for future investment opportunities through a Statement of Opportunities. The statement will guide market sounding and formal RFP processes.

The second statement was released on 18 April 2016 and identified the following priority areas:

  • increasing permanency for children in out-of-home care, particularly through open adoption
  • establishing an Aboriginal centre for excellence in Western Sydney
  • increasing access to early childhood education.

A series of market sounding events will be held in coming months. Details of the events will be published on this site as they become available.

The first statement was released on 4 February 2015. All priority areas in the statement were the subjects of RFPs in 2015.

Grow the market and remove barriers

2015 Roundtables and market sounding sessions

The Office of Social Impact Investment recently held five market sounding sessions to help stakeholders prepare for future transactions with the NSW Government:

20 February 2015

Supporting offenders on parole to reduce their levels of re-offending

23 February 2015

Managing chronic health conditions

27 February 2015

Managing mental health hospitalisations

9 March 2015

Preventing or reducing homelessness among young people

11 March 2015

Open ideas

The NSW Ministry of Health held additional market sounding sessions on 7 October 2015.

Materials from all sessions in 2015 are below.

Market sounding materials – October 2015

Materials from two market sounding sessions hosted by the NSW Ministry of Health on 7 October 2015 are now available:

Market sounding materials – February and March 2015

The following documents were distributed at all market sounding sessions in February and March 2015:

Specific documents on the policy areas discussed at individual sessions are available below.

Supporting offenders on parole

Managing chronic health conditions

The following publications by the Bureau of Health information may also be useful:

The Australian Institute of Health and Welfare has also published extensively on chronic disease.

Managing mental health hospitalisations

Preventing or reducing homelessness among young people

Open ideas

Build the capacity of market participants

Expert Advice Exchange (EAX)

Apply for the EAX

Applications are now open for the third round of the EAX. Submit your online application by 21 June 2016.

  • Are you a not-for-profit or social enterprise based in NSW that delivers services?
  • Do you want to build knowledge and skills to participate in new funding arrangements like social impact investment or outcomes-based contracting?
  • Are you interested in improving your outcomes focus, diversifying income streams, or transitioning to new business models?
  • Do you have potential for growth?
  • Would you otherwise have limited financial resources to purchase the advice required?

The EAX is a platform to connect eligible social sector organisations with pro bono expert advice from leading law firms, professional services firms, and financial institutions. Advice is available in over 20 areas, including:

  • legal issues, such as governance, intellectual property and regulatory matters
  • strategy, such as business planning, IT systems and communications
  • financial management and accounting
  • program development, implementation and evaluation.

Read the full list of advice areas and eligibility criteria in the EAX applicant brochure.

As a result of strong demand for the EAX in 2015, the Office has worked with some advisory firms to support NFPs in ways other than one-on-one advice. Introductory advice packages on legal structure, governance and intellectual property are now available.

For more information or to sign up to our mailing list, please contact the Office of Social Impact Investment via email or on (02) 9228 5333.

Participating advisory firms