David Janetzki: How we can make real social impact in improving lives in Qld

It’s estimated the annual economic contribution of social enterprise by businesses with a purpose that goes beyond profit is $3.84bn in Queensland alone, writes David Janetzki.

A social impact business lives a purpose that goes beyond profit. Picture: iStock

Amid the big announcements and big disappointments of last week’s state budget, we quietly committed to the biggest overhaul of social enterprise and social impacting investment in Queensland’s history.

A social impact business is difficult to define but essentially is a business that lives a purpose that goes beyond profit.

That is, a “social impact”. A business may be jobs-focused training and developing people, offer a particular service or product or simply run an ethical business for profit which is invested into social causes.

Social Enterprise Australia estimates there are 12,000 of them around Australia employing 200,000 people.

Names such as Orange Sky, the Big Issue and Who Gives a Crap come quickly to mind.

At their heart, social impact businesses can help governments target societal challenges including youth unemployment, offender programs, homelessness, foster care, disability care, addiction, domestic violence and environmental concerns.

A social impact business lives a purpose that goes beyond profit. Picture: iStock

These are generational ills we see play out on the news every day, frustrating governments and communities.

Queenslanders are looking for new solutions that can move the dial on these challenges and a fully realised social impact sector can help.

Two years ago, I announced our proposal for a loan scheme that will invest $20m every year to empower social entrepreneurs to change the lives of Queenslanders who need it most. These loans are capped at $500,000 and applicants will be required to meet certain conditions to access the scheme.

It was recognition that a purely grants-based program as adopted by the current government isn’t going to be enough.

Last week, I announced our next step.

A future LNP government will establish Queensland’s first Office of Social Impact (OSI) in Treasury.

The proposed Office of Social Impact will work alongside impact investors, community, faith groups, philanthropists, corporates and social enterprises to co-design a roadmap for social enterprise and impact investing in Queensland.

The OSI will work alongside impact investors, community, faith groups, philanthropists, corporates and social enterprises to co-design a roadmap for social enterprise and impact investing in Queensland.

By basing the OSI in the engine-room of Treasury, it means that ministers and their departments can unlock the information needed to make better decisions and create active and open channels to the community for better ideas.

In a world of infinite need limited by scarce resources, the potential for collaboration between government, socially-minded investors and the impacting business community to identify opportunities to access finance is vast.

That’s why an OSI embedded in Treasury will ensure the right capital is getting to the right place.

LNP member for Toowoomba South David Janetzki. Picture: Liam Kidston

No social impact investment models should be off the table, whether they be social benefit bonds, outcomes focused grants, payment by results contracts, incentive payments and layered investments.

The OSI will actively seek out, support and scale social enterprise and impact investment opportunities from across Queensland. If a social impact business can help solve a problem, we want to hear from them.

Social impact businesses, not-for-profits and community organisations are grassroots connected, on the ground and ready to help tackle our most difficult challenges. They have the knowledge, heart and personal drive to change the world around them.

In their own city, town, suburb and street.

Place based and community-based solutions are fundamental to delivering better services in Queensland.

Former British prime minister David Cameron drove social impact more than a decade ago.

This path has been walked before.

Former British prime minister David Cameron drove social impact more than a decade ago, creating lasting change through issuing the first social impact bond and establishing the first ever wholesale social investment bank.

When treasurer in NSW, Mike Baird pioneered Australia’s first two social benefit bonds seeking to deliver better services and results for families at risk.

Federal Treasurer Jim Chalmers signalled his intention in May’s budget to unlock private capital to build a deeper social impact investing market in Australia.

He’s currently working through recommendations from the Social Impact Investing Taskforce led by social impact investment pioneer Michael Traill.

Social Enterprise Australia estimates the annual economic contribution of social enterprise is $3.84bn in Queensland alone.

As NSW treasurer, Mike Baird pioneered Australia’s first two social benefit bonds seeking to deliver better services and results for families at risk. Picture: NCA NewsWire/Nikki Short

But the potential is limitless.

I’ve seen it with my own eyes as a founding director of Vanguard Laundry, a large-scale jobs-focused social enterprise for people who faced long-term barriers to work.

Swinburne University of Technology undertook a longitudinal study on Vanguard that revealed not just the obvious health and wellbeing benefits of the dignity of work but reduced Centrelink reliance, falling smoking rates, fewer hospital presentations and improved housing security.

Last year Brisbane hosted the Social Enterprise World Forum, which was proof that Queensland has the entrepreneurial spirit, creativity and heart to be a world leader.

And, if elected in October 2024, we have a plan to achieve exactly that.

David Janetzki is LNP member for Toowoomba South