Submission to Government’s Economic Reform Roundtable, SEDI Grants closing
Message from IIA CEO
Welcome to our latest news update.
In this issue, we share details of our latest submission to the Australian Government’s Economic Reform Roundtable, which included recommendations that offer a practical, evidence-based path to lift productivity, build economic resilience and strengthen budget sustainability.
We remind social enterprises that the final round of SEDI Grants is fast approaching, with funding expected to be fully allocated before the end of the year (EOIs to be submitted by August 31 and grant applications by 30 September 2025).
We also share highlights from our latest webinar with the University of Melbourne, where leading experts from Australia and overseas explored how innovative blended finance models can unlock capital for impact.
IIA’s latest guest author for our On Impact monthly series is Wendy Fergie of Sweef Capital and F5 Collective. Wendy has offered insights on the urgent need for a whole-system funding approach to support Australia’s growth.
In addition, we cover developments out of the UK and Asia on how impact investing is shaping global markets and government policy.
We hope you find these updates useful and welcome your feedback.
Best wishes,
David
David Hetherington, CEO
Impact Investing Australia
Submission to Government’s Economic Reform Roundtable
IIA has submitted a set of recommendations to Treasury for its Economic Reform Roundtable later this month, highlighting how a stronger impact investment market can boost national productivity. By directing capital toward solutions that address entrenched social and environmental challenges, impact investment drives better outcomes, reduces long-term public costs and lifts participation and economic performance. Our recommendations build on the 2022 update from the Social Impact Investment Taskforce, which identified several high-leverage reforms. We support the Taskforce’s recommendations and propose the Government adopt the following three priority measures, which will accelerate impact investment and contribute to Australia’s broader reform agenda:
1. Wholesale co-funding with private capital
We recommend the establishment of a wholesale co-funding mechanism that provides cornerstone investment alongside private and philanthropic capital to address financing gaps for intermediaries, funds and mission-driven enterprises unable to access capital on commercial terms. Initially, this could be interim wholesale financing options that crowd in private sector investment with a view to developing a wholesaler over time.
2. Foundation for Impact Investment
To address persistent gaps in early-stage capital, we recommend the establishment of the Foundation for Impact Investment, to provide capability-building grants and concessional, recyclable loans to support emerging social enterprises and impact intermediaries in proving and scaling their models.
3. Expedite outcomes fund implementation
We also recommend the implementation of the $100 million Outcomes Fund, announced in
2023, be expedited with an initial focus on backing high-quality, proven interventions to demonstrate the effectiveness of outcomes-based models that build confidence in outcomes-based contracting and catalyse broader adoption.
SEDI Grant applications closing soon
The Social Enterprise Development Initiative (SEDI) Grants program has supported social enterprises to build their capabilities and scale their impact since launching in June 2024. With strong demand, funding is expected to be fully allocated before the end of the year. As the grants administrator, we’re encouraging all eligible social enterprises to submit an Expression of Interest by 31 August and a grant application by Tuesday 30 September 2025. We anticipate this will be the final round.
If you’re a social enterprise considering applying:
- Check your eligibility on our website, including alignment with the Department of Social Services outcome areas.
- Submit an Expression of Interest (EOI) by 31 August, to allow time for our review and follow-up.
- Once submitted and we’ve reviewed your EOI, you’ll be prompted to book a call with the SEDI Grants Team to discuss your eligibility.
- If you are considered eligible, you’ll receive a link to complete the grant application. This is due by Tuesday 30 September 2025. The application process can take a lot of time, so we recommend starting early.
More information
Application Guidelines, Frequently Asked Questions and tips to help submit a successful application
Unlocking capital for impact with blended finance
In our most recent webinar with the University of Melbourne, our CEO David Hetherington interviewed guest speakers on how blended finance deals are structured and managed, highlighting key differences from traditional finance, risks and considerations for new investors, and lessons from global and Australian dealmakers. The session also covered strategies for aligning diverse stakeholders and navigating roles and challenges throughout the investment lifecycle. Our three leading experts were:
- Vito G. Dellerba, CFA – Managing Director, Sustainable Investing at Canadian pension fund, La Caisse (formerly CDPQ)
- Dr Catherine Brown – Enterprise Professor, University of Melbourne; Board member at IIA and Philanthropy Australia
- Ben Smith Ben Smith – Head of Impact Investing, Paul Ramsay Foundation
Insights on impact investment in the UK
Our CEO, David Hetherington, recently attended the London Impact Investing Network (LIIN) flagship event, part of London Climate Action Week, and met with senior UK impact leaders.
The event included speakers from Better Society Capital Just Transition Finance Lab and Grantham Research Institute on Climate Change & the Environment who discussed:
- Social impact through a just transition lens and why supporting a just transition matters for climate goals – and how to do it
- Supporting and integrating social impact in company business models – lessons from fund management
Also at the event, David caught up with Dame Caroline Mason CBE, CEO of the Esmée Fairbairn Foundation (pictured below) who was an expert panel member for the recent Endowments for Impact Challenge (EFIC).
Reach out to David if you’d like to know more about the latest developments in impact investing in the UK.
Whole-system funding fix to supercharge Australia’s growth
In our latest story for On Impact our guest author, Wendy Fergie (Australia/NZ Advisor for Sweef Capital and CIO for F5 Collective), says Australia risks missing out on jobs, growth and innovation unless we fix a major funding gap holding back small and medium-sized impact businesses, especially those led by women and Indigenous founders. Wendy argues that a whole-system funding model, including venture capital, growth equity and strategic public co-investment, is urgently needed. By adapting proven approaches (such as those used by DFAT in Southeast Asia), we can unlock billions in private capital and strengthen the economy.
Read Wendy’s story in On Impact
Mission-led impact investing for foundations and trusts
Join the Endowments for Impact Challenge (EFIC) and the Foundations Group for Impact Investing (FGII) for a conversation on how foundations and trusts can work with advisors to align capital with purpose. IIA’s Chief Operating Officer, Bruce Campbell, is one of the guest speakers for the session, which will cover:
- the realities of working with advisors
- advisors and power dynamics
- the relationship between advisors and Investment committees
challenges faced and how challenges have been overcome
When: 12:00pm – 1:00pm AEST, Thursday 28 August
Where: Virtual
Note: This event is for FGII members only (if you’re a foundation or charitable funder interested in attending, you can apply for FGII membership)
International news
UK report identifies long-term impact investment opportunities for wealth managers
The UK’s Impact Investing Institute, with Schroders, has released a report to help wealth managers tap into the growing impact investing market, now worth £76.8 billion. While 85% of wealth managers offer sustainable investments, only a third offer dedicated impact products – despite 76% seeing it as a valuable unique selling point.
The report highlights four key opportunities: growing client demand (especially among younger generations and UHNW clients), improved client retention, competitive differentiation, and easier market entry. It also outlines barriers, such as low awareness and operational challenges, and includes a practical guide for firms developing an impact offering.
Read more and access the report
World’s largest fund of its kind to support vulnerable children and families
The UK’s new £500 million Better Futures Fund is a major landmark and a world first, which will help thousands of families, and places impact investing at the centre of UK Government policy.
The fund will support up to 200,000 children and their families over the next 10 years. It represents a substantial commitment from government to work alongside impact investors, philanthropy, purpose-driven business, civil society and local government to tackle long-standing challenges, providing opportunities, including improved access to education, safer homes and specialist services for those who need it most.
This builds on growing UK Government recognition of the impact economy, acknowledging that innovative funding models, impact investing approaches and purpose-centred partnerships can deliver social outcomes, economic growth and transformative change.
Accelerating gender equality: Financing for SDG 5 in the APAC region
Explore the latest financing landscape for gender equality across Asia in AVPN’s new report. This data-driven analysis offers a comprehensive view of current funding flows, highlights regional financing gaps, and identifies emerging opportunities across four key themes:
- Climate
- Women’s economic empowerment
- Health
- Gender-based violence
Accelerating Gender Equality: Financing for SDG 5 in the APAC Region offers a roadmap for funders, policymakers and practitioners to advancing SDG 5 through targeted, systemic investments.
