The social impact bond (SIB) innovation is gathering pace around the world and here in Australia, but it is still very early in the development of this nascent market. Expectations are high – from investors and service providers alike – but implemented contracts are thin on the ground, and players are learning on the job when new SIBs are developed.

While SVA believes SIBs have the potential to provide significant benefits to governments, service providers and investors alike, the reality is that they are not a suitable funding instrument for all social programs.