Federal Government Pledges Over $1 Million for Social Enterprises That Create Jobs for the Disadvantaged

Social enterprises that generate employment and positive social outcomes can apply for loans of up to $500,000.

An elderly commuter at Flinders Street Station in Melbourne, Australia, on Sept. 4, 2015. Michael Dodge/Getty Images

The Australian government is set to inject $1.2 million (US$755,000) into a new loan scheme to support social enterprises, businesses that merge commercial success with community benefits.

Treasurer Jim Chalmers and Social Services Minister Amanda Rishworth said the initiative would amplify the impact of Commonwealth funding by attracting private-sector investment.

Social enterprises that generate employment and positive social outcomes can apply for up to $500,000 in loans.

The scheme prioritises businesses that create job opportunities for disadvantaged groups, including people living in regional and rural areas, individuals over 65, and those with disabilities.

Other target beneficiaries include Indigenous Australians, refugees, asylum seekers, migrants, culturally diverse communities, and people experiencing homelessness.

Private Backing Strengthens the Fund

The initiative builds on White Box Enterprises’ efforts, which have raised an additional $4.2 million from backers such as the Westpac Foundation, Macquarie Group Foundation, English Family Foundation, Ian and Shirley Norman Foundation, and the Victorian government.

This new scheme follows the now-defunct Social Enterprise Development and Investment Funds (SEDIF), which provided loans until its closure nine years ago.

Under SEDIF, a $20 million federal investment leveraged an additional 124 percent in private finance, resulting in 61 loans to social enterprises.

Disability Employment Gaps Persist

The employment rate for Australians with disabilities has remained stagnant over the past two decades, with only 53.4 percent of working-age individuals (15–64 years) participating in the labour force, compared to 84.1 percent of those without disabilities.

This figure has barely shifted from 53 percent in 2003, while participation among those without disabilities rose significantly over the same period.

People with disabilities are also more likely to be employed part-time, with 40.9 percent employed part-time compared to 31.7 percent of workers without disabilities. Meanwhile, 59.1 percent of workers with disabilities hold full-time jobs, compared to 68.3 percent of their non-disabled counterparts.

Widespread Workplace Discrimination

Nearly half (45.2 percent) of employed Australians with disabilities reported facing discrimination or unfair treatment from their employer in the past year, according to Australian Bureau of Statistics data.

The Australian Human Rights Commission recorded 2,307 complaints in 2019–20, with employment and access to services among the most common concerns.

Around 44 percent of complaints fell under the Disability Discrimination Act 1992, with nearly 30 percent specifically linked to workplace discrimination.

The 2016 Inquiry Report found that workplace discrimination stems from negative assumptions about people with disabilities, employer unawareness, and lack of inclusivity.

Those with complex disabilities face greater barriers, while discrimination impacts mental health, confidence, and workforce participation.

Many employers also overlook available government support and legal obligations.