Impact Revenue Investments – frequently asked questions

No, there is no minimum or maximum trading revenue that organisations must meet to be eligible.

While trading revenues do not need to be generated in QLD, impact must occur in Queensland. Entities will be asked to report on both trading revenues and impact.

Year 2 funding support will be based off actual annual trading revenue in year 1 (not the original baseline).

All successful applicants will be required to enter into a funding agreement with the State, which sets out the terms upon which assistance will be provided including reporting requirements. Inability to deliver social impact in Queensland in the areas identified during the application process will be addressed as part of the contractual arrangements.

Yes, to be eligible for funding the social enterprise can be operating under a parent organisation’s ABN, however, the social enterprise will need to evidence that they maintain independent financial accounts alongside being Social Traders certified; People and Planet First verified; registered via the Office of the Registrar of Indigenous Corporations (ORIC); and/or certified with Supply Nation.

Eligible applicants are required to demonstrate that their organisation is a genuine social enterprise by
providing evidence of one or more of the following:

• Social Traders certification* (For Social Enterprise | Social Traders)
• People and Planet First (PPF) verification* (Verification | QSEC)
• Registration via the Office of the Registrar of Indigenous Corporations or certification with Supply Nation, and ability to demonstrate how they deliver outcomes as part of their business operations.

*If your organisation is proposing to obtain Social Traders certification or PPF verification, there is opportunity to note this in your application. Certification or verification does not need to be finalised for consideration of Stage 1 applications, provided the application to obtain certification or verification has commenced.

Eligible applicants must also be:

• operating in Queensland with a physical presence in Queensland
• generating or will be generating (within a year of contract commencement) a social benefit which occurs in Queensland
• able to demonstrate potential for sustainable growth in trade revenue and social impact. (This might be demonstrated, for instance, through a history of trade revenue growth or by having secured investment, land or other capital that is expected to unlock trade revenue growth within a year of contract commencement, and be profitable or the potential to be profitable)
• able to demonstrate good governance by having an established independent board in place or by providing a method statement that demonstrates transparent, accountable and effective decision
  making structures that balance social mission, financial sustainability, and stakeholder interests. (For detail on what comprises an adequate ‘method statement’, see further FAQs below)

No, to apply you must be a social enterprise aligned to the eligibility requirements above.

If you can demonstrate that your organisation is a social enterprise (as defined above), then you can apply for an Impact Revenue Investment. This includes social enterprises that are subsidiaries of not-for-profit organisations.

If your not-for-profit organisation is not currently operating a social enterprise, but is looking to expand existing activities to include social enterprise, you are not eligible for this round of Impact Revenue Investments.

Yes, to be eligible for an Impact Revenue Investment you must be able to demonstrate that your business has a physical presence and is operating in Queensland, and is delivering social impact in Queensland. This does not mean however that your primary headquarters needs to be located in Queensland. The Impact Revenue Investments are targeting revenue and impact growth in Queensland.

OSI is particularly interested in supporting organisations that deliver measurable social impact in the
following areas:

• Quality Jobs for Disadvantaged Queenslanders: Supporting projects that create sustainable employment opportunities for individuals facing barriers to workforce participation.
• Supporting Marginalised Young People: Supporting young people and their families to thrive, making communities safer, reducing the number of children and young people in out-of-home care, and improving outcomes for those in care, by addressing root causes and fostering positive pathways.
• Reducing Addiction and Improving Mental Health: Initiatives that tackle substance abuse, promote mental health, and provide accessible support services.
• Improving Women’s Safety and Preventing Domestic and Family Violence (DFV): Social enterprises that support people impacted by DFV, enhance safety for women, and address the underlying causes of DFV.
• Increasing Social and Affordable Housing: Projects that expand access to safe, affordable, and inclusive housing.
• Creating Place-Based Initiatives: Supporting community-driven solutions that enable all communities to thrive by addressing local challenges and opportunities.

OSI will also consider applications with potential for high-impact in other social areas.

Yes. While these areas are priorities, consideration will also be given to other high-impact initiatives that demonstrate strong potential to deliver positive and measurable social outcomes in Queensland. If your organisation addresses other critical social needs in Queensland, we encourage you to apply and outline the impact you aim to achieve.

As long as the organisation meets the eligibility criteria and the impact is going to be delivered in Queensland, there is no preference for scaling current activities over expanding into new areas, locations
or activities.

However, organisations will need to demonstrate how the government support will enable their enterprise to grow its trading revenue and move towards financial sustainability, in order to achieve greater social impact.

Government funding provided through the impact revenue investment product is untied, offering maximum flexibility to support your organisation’s needs. You can allocate the funding towards any operational or capital expenses that will help achieve your organisation’s goals and amplify its impact. Examples include:

• Salaries and wages for staff
• Professional services such as accounting, legal, or marketing support
• Administrative costs like rent, utilities, or insurance
• Technology upgrades, software, or equipment to improve efficiency
• Purchasing or upgrading physical assets, such as buildings, vehicles, or machinery
• Developing infrastructure to support service delivery or business growth
• Investing in tools or resources to enhance your organisation’s capacity.

You cannot however use the funding for a private benefit, such as excessive remuneration or dividends, purchase or improvement of assets for primarily private use, or the use of funds to increase private business value.

If you have an independent board, you will not be required to submit any documentation.

If you do not have an independent board, you will be required to attach a method statement about your organisation’s governance. Refer to the next FAQ for a detailed description of what to include in your method statement.

A method statement for governance is an outline of principles, processes and practices your organisation has adopted to ensure it operates effectively; sustainably; and with clear accountability, transparency, and ethical behaviour. Elements to consider including in your method statement include:

• Mission and purpose: are your organisation’s mission and purpose clearly defined and how does your organisation ensure its activities and decision making are aligned with these?
• Accountability and transparency: what mechanisms and processes does your organisation follow to report on finances, performance and impact?
• Leadership and decision making: in the absence of an independent board, what are the decision making structures and processes within your organisation?
• Regulatory and ethical compliance: what are the means by which your organisation adheres to relevant laws, regulations and ethical standards?
• Financial sustainability: what financial management practices does your organisation follow including relating to budgeting, risk management and diversification of income streams?

An operating model refers to the framework or approach your organisation uses to deliver its services, achieve its objectives, and manage resources. Types of operating models include:

• Work Integrated Social Enterprise: creates employment and training opportunities for marginalised people.
• Community Need: delivers accessible products and services to meet community needs that are not met by the market.
• Profit Redistribution: donates at least 50% of profits or revenue to charity

In Stage 1, applicants need to provide basic information about their organisation, including its financial history, potential for revenue growth, and its social impact areas. This information will be submitted without supporting evidence for the purpose of Stage 1 and will be assessed against the criteria outlined in the Guidelines. Applicants who are shortlisted in Stage 1 will be invited to submit an application in Stage 2.

In Stage 2, applicants will be asked to provide additional details and evidence to support the claims made in Stage 1. This could include documents like financial statements, impact assessments, or certifications, as well as other information and evidence to inform the assessment of your organisational capability, financial viability, revenue growth potential and social impact quality. The Stage 2 assessment will use this evidence, along with the Stage 1 information, to decide which applications will be recommended for funding.

OSI will provide:

• Public information sessions on Friday 11 July at 12pm and Wednesday 23 July at 12pm, co-hosted with the Queensland Social Enterprise Council. Links to register your attendance are available on the
  OSI Impact Revenue Investments web page (link here).
• Updates to the FAQs on the funding webpage.
• A dedicated inbox for questions: impactrevenueinvestments@treasury.qld.gov.au.

Trading revenue will need to be reported every 6 months to determine how much funding you are eligible to receive under the IRI program, and audited financial accounts provided annually.

You will also be required to report every 6 months on the social impact that your organisation has created in Queensland as a result of the government support, however, government payments will be made on the basis of revenue growth not social impact.

More information will be provided to applicants who are invited to apply to Stage 2.

Trading revenue is the gross revenue generated from the sale of goods or services as part of operating business activities, minus any discounts or refunds provided. This revenue is distinct from grants,
donations, or other forms of similar funding, as it is earned through commercial transactions. For the purpose of IRIs, trading revenue excludes income earned from donations, grants, interest, dividends, intercompany transfers, other forms of passive income and profits on the sale of assets.

For the purpose of IRIs, grants are defined as financial assistance payments provided by a government, philanthropy or other funding organisation to support the achievement of specific objectives or outcomes. These payments are characterised by a transfer of funding without a direct and approximately equal exchange of good and services. Payments that are considered a ‘fee for service’ or involve a contractual arrangement for the delivery of specific services or products are excluded from this definition and can be included as part of trading revenue.

Successful social enterprises will be eligible for two years of IRI support capped at $100,000 in the first year and $100,000 in the second year (or a total of $200,000 over two years). The total amount you will be entitled to however will depend on the growth in trading revenue earned. See further below for more detail.

Eligible social enterprises can receive up to $100,000 in the first year (inclusive of a $30,000 upfront payment) and up to $100,000 in the second year (there is no upfront payment in the second year).

The total funding you are entitled to in each year is tied to your trading revenue growth, with funding calculated at a rate of $4.00 for every $10.00 growth in trading revenue in the first year tapering to $2.00 for every $10.00 growth in trading revenue in the second year. For further detail around how individual payments are calculated, refer to the ’How do IRIs work in practice’ below.

Yes, 30% of the first year’s funding ($30,000 per year) will be paid upfront, with the remainder distributed in six-monthly payments across the two-year program subject to and based on demonstrated growth in trading revenue.

Subsequent payments in the first year will factor in the $30,000 upfront payment to avoid over payment. For further detail around how individual payments are calculated, refer to the ’How do IRIs work in practice’ below.

Yes, non-financial support will be provided as part of the IRI program to ensure social enterprises have access to both the financial and non-financial support necessary to succeed.

This will include peer-to-peer learning opportunities. This will enable participants to share experiences, insights, and best practices with others in the sector, creating a supportive network for mutual growth and learning.

Yes, the intention is to run three rounds of IRIs, with applications opening in 2025, 2026 and 2027 for commencement in the subsequent year.

OSI reserves the right to alter the eligibility criteria, application process and priority focus areas for future rounds.

Unsuccessful applicants will be notified following both the Stage 1 and Stage 2 assessment process.

CASE STUDY

Olivia’s Catering

Olivia’s Catering is an organisation in Ipswich that employs disadvantaged Queenslander’s who are struggling to enter the job market. The organisation provides employees with on-the-job training to help them build transferable employment skills in the areas of hospitality, catering and customer service and connects employees with wrap-around social support services such as housing and psychological support to help them thrive in paid employment.

Olivia’s organisation:

• Currently earns $600k in trading revenue each year, with all profits re-invested to grow her social impact.
• Has the opportunity to quadruple trading revenue over the next two years but requires investment to expand.
• Has accreditation with both Social Traders and People and Planet First and operates with an independent board. 
• As a social enterprise that delivers impact in Queensland and with strong growth potential, Olivia’s organisation is successfully awarded the 2-year Impact Revenue Investment funding support from the Queensland Government.