Design of the Commonwealth Outcomes Fund

This submission to the Australian Government shares SVA’s views on the design of the Commonwealth Outcomes Fund. It outlines key design priorities and considerations for implementation.

The document outlines the following based on SVA’s experience:

• The rationale for outcomes-based commissioning approaches in Australia, including different
  types of approaches (such as outcomes-based contracting and its benefits)
• Four priorities for the Australian Government in designing and implementing the Outcomes
  Fund, including:

1. Picking one pressing social issue to target with the Outcomes Fund and doing it well
   (i.e. delivering on a clearly defined strategic objective of the Outcomes Fund)
2. Implementing an outcomes payment framework which includes the standardisation of
   key commercial terms (cohort eligibility criteria, metrics, counterfactual, payment
   guidance) prior to commencing any commissioning/procurement process of the
   Outcomes Fund;
3. Building and retaining Australian Government capability in a specialised team/agency;
   and
4. Standardising contracting templates for State and Territory governments entering into
   outcomes-based contracting arrangements;

• The role of private investors and philanthropy in outcomes-based contracting