Australia's Social Purpose Market: Understanding Funding Flows and Exploring Implications
Australia's Social Purpose Market: Understanding Funding Flows and Exploring Implications was undertaken by PwC, as part of its partnership with the Centre for Social Impact (CSI), to estimate the scale in financial terms of the market involved in delivering services for social purpose.
For the purposes of this analysis, 'social purpose' was defined as those services designed to improve the health and wellbeing of individuals and communities across key policy areas: health, welfare (including aged care), education and housing.
Informed by a combined understanding of past investment, and a scan of current and emerging issues, the analysis aims to stimulate a debate around the question: how can Australia extract maximum value from its investment in the social purpose market, and will the best possible health, social and productivity outcomes be achieved?
The analysis concluded that every year Australia spends more than half a trillion dollars on social purposes, which is almost 32% of the Gross Domestic Product (GDP).
The breakdown of contribution to the social purpose market is as follows:
- $282bn: Commonwealth Government
- $121bn: State Government
- $10bn: Local Government
- $78bn: Not-for-Profit Sector
- ~$21bn: For-Profit Sector
The final report recommends that, on the basis of the analysis, the opportunity exists to consider transformative policy choices and reform directions that will yield substantial productivity improvements to provide a sustainable level of social support to Australian citizens.
It also recommends that any plan needs to consider seven interrelated focus areas:
- Data and measurement
- Prevention and intervening early
- System and market design
- Place-based reform