Social procurement policy to unlock public benefit
Social procurement is procurement for impact. When governments embed social enterprises into supply chains, they can directly address societal challenges, create jobs for marginalised communities or contribute to positive environmental impact.
Social procurement is a strategy to align and deliver multiple strategic economic and social objectives across government. By leveraging the $140b+ annual government procurement spend, social and economic outcomes can be achieved through sustainable market activity.
Image: Good Sammy Enterprises
We’re supporting government to unlock public value
Social Traders has been working with governments around Australia for over 10 years. We’re a trusted partner and adviser on the social enterprise sector and we provide expertise in social procurement.
Commonwealth government
Workforce Australia Review
The Australian Government is actively considering social procurement. A Commonwealth Social Procurement Framework has been recommended in the Workforce Australia Review and the Inquiry Report from the Standing Committee on Economics.
House of Representatives Standing Committee on Economics
Social Traders provided a submission to the inquiry on economic dynamism, competition and business formation from the House of Representatives Standing Committee on Economics.
Commonwealth Procurement Rules
The Commonwealth Procurement Rules are under review. Social Traders is speaking with the Australian Government Department of Finance and Treasury about short- and long-term changes. We’ve also provided social procurement policy advice to the Department of Finance at their request.
'Working Future' White Paper
The Australian Government’s 'Working Future' White Paper released in September 2023 has a section dedicated to ‘Backing social enterprise’ signalling the government's priorities and commitment to the growth of, and collaboration with, the social enterprise sector as the future of Australia’s Employment Services system.
Australian Government 2024 Budget
The Australian Government 2024 Budget included a package for Employment Services Reform and Small Business Support, ‘providing $21.9 million to support social enterprises and employers to engage job seekers through paid employment placements of up to six months. This includes grant funding of $1.5 million over two years to support the certification of an expected 500 Work Integrated Social Enterprises.’
Our 2024 pre-budget submission
Tackling Entrenched Community Disadvantage package
The 2023 Australian Government Budget announced millions of dollars for social enterprise as part of their Tackling Entrenched Community Disadvantage package.
State governments
Queensland
The Queensland Government is a member of Social Traders and has a social enterprise strategy in place. This social enterprise strategy includes an investment of $8m into a Social Enterprise Jobs Fund for social enterprise capacity building, market development and finance. As well as accessing Social Traders database through a whole-of-government membership, the Queensland Government undertook a pilot project where five government departments are working with us to grow their social procurement capability.
The Queensland Government also provided funding for Queensland social enterprises to get certified with Social Traders. Alongside government support at state level, all Queensland Local Governments now have access to certified social enterprises through an agreement between Social Traders and Local Buy.
Victoria
As the first state government to join Social Traders membership in 2018, the Victorian Government has a social enterprise strategy currently in place since 2016.
The Victorian Government Social Procurement Framework was introduced in 2018, to leverage its everyday procurement spend to deliver social and sustainable outcomes that would benefit the Victorian community. The framework has been rolled out across 275 government agencies and is a key driver of social procurement adoption amongst businesses.
New South Wales
The NSW Government has been a member of Social Traders since 2020. To grow social procurement activity, it also amended its procurement guidelines to incorporate social enterprises as a type of supplier that they are encouraging business to engage with.
In 2024, the State launched an inquiry into the procurement practices of government agencies in New South Wales and its impact on the social development of the people of New South Wales.
Our submission into the NSW Procurement Inquiry
South Australia
The Department of Human Services (SA) joined Social Traders as a member in 2024 and has utilised Social Traders certification as eligibility criteria to enable access for certified social enterprises to access grant funding regardless of legal structure. Media release from SA Premier
The SA Office for Small and Family Business made the SA Government’s first major investment into the SA social enterprise sector in 2023, funding the multi-year Business for Good program as part of the Small Business Fundamentals grant, led by Social Traders in partnership with the South Australian Social Enterprise Council and Collab4Good.
Australian Capital Territory
The ACT has been a member of Social Traders since 2021, and actively encourages ACT Government departments and agencies to engage with social enterprises as one way that Government Buyers may choose to achieve the Diversity, Equality and Inclusion procurement value.
In late 2023 the ACT Government announced their investment into supporting Canberra’s growing social enterprise sector through a pilot Social Enterprise Grants Program which is being rolled out in 2024.