Last week's announcement of a major overhaul to Australia's employment services system is a big moment for our sector.
For the first time, social enterprises have been explicitly named as part of the solution.
This didn't happen overnight. It reflects decades of work across the sector. Now the focus shifts from proving the value of social enterprise, to helping shape the role it can play in the future employment system.
What just happened
On Wednesday, 27 May Minister Amanda Rishworth announced plans for a major overhaul of Australia's employment services system, describing it as a "once-in-a-generation reform."
The $312 million package will reshape how more than one million Australians are supported into work each year. At the centre of the reform is a shift to three service streams, each with tailored support. The stream that matters most to social enterprises is Stream Three, designed for people facing complex barriers to employment who need intensive, wrap-around support.
The Minister was clear: Stream Three "will include alternative pathways to employment, including social enterprises."
And the government's discussion paper goes even further, noting: "Social enterprises will likely play an important role within intensive services... They are well placed to offer flexible, wrap-around support such as supervision, mentoring and job design and many have strong connections to local communities and industries."
Why this matters
This is the first time social enterprises will be considered in the core architecture of mainstream employment services, not as an add-on, but as part of how the system is intended to work.
For years, WISEs have been operating on the edges of the system, often without funding, delivering the kind of support this reform is now prioritising. The outcomes speak for themselves.
Just 11.7% of people supported through Workforce Australia Services find employment lasting more than six months, and the government's own target is only 15%. Disability Employment Services performs better, at 37.3%. Jobs-focused social enterprise is achieving 82% according to the results from the PBO Trial.
That gap is not incidental. It reflects a fundamentally different approach, one built around the person, not the placement.
For individuals furthest from the labour market, what the government is proposing signals a deliberate move away from the large-provider, one-size-fits-all model that has dominated employment services. In its place, the new framework aims to prioritise provider diversity, deep local community connections, wrap-around integrated support, and sustainable employment outcomes.
These are the things WISEs do best.
Crucially, the Minister made clear that Stream Three providers will be distinct from those in Stream Two, specifically chosen for their deep community connections and relevant experience delivering intensive support.
What’s next
For jobs-focused social enterprises, the opportunity now is to help define our role in the employment system. DEWR is seeking input on its discussion paper. This is your chance to have a say: what your organisation does, who you support, what outcomes you achieve, and what you'd need to participate in the new system.
The consultation window is open until 31 July 2026.
There is a role for individual input, particularly where it reflects practical experience, delivery insight, and local context.
At the same time, a collective voice is crucial – we’re here to help with that.
What White Box is doing
This is a moment years in the making. White Box has been engaging government on the role of WISEs in the employment system since 2021, when we first broached the idea of a Payment by Outcomes (PBO) Trial.
That trial helped build a compelling evidence base, showing that social enterprises are 2.5 times more effective than mainstream employers supported by government programs to retain people with complex barriers.
We wouldn’t be here without the 17 social enterprises who participated in that work. That evidence, alongside programs like EPRI and the sustained work of organisations across the sector, contributed to this moment. We're proud of the role we've played. Now, our focus is on what comes next.
We are:
- Talking to WISEs we work with - White Box will be reaching out to the 40+ WISEs we engage with through our programs and services to hear what you need from this reform: what funding models work, what barriers exist, what a good system looks like from where you sit.
- Developing an informed and evidence-based position - based on what we hear, and what experience and the evidence suggests, we'll work toward an informed paper with clear recommendations.
- Working alongside sector peers including Social Enterprise Australia (SEA), the WISE Hub, Social Traders and Amplify Alliance to avoid duplication and strengthening our position as a united front for the WISE sector.
This is a critical moment
There is a real opportunity now to embed social enterprise into the core of Australia's employment system. But it's not guaranteed.
Not everyone in government understands how WISEs work or what it takes to deliver impact. If we don't engage clearly and collectively, we risk undermining years of progress. We cannot waste this opportunity.
The next phase of this reform is critical, and a united approach is key.
Share your views – you have options!
- WISEs involved in White Box’s programs or services, a direct invite is coming your way – these will be small group discussions to get under the hood of potential models. If you’re a WISE not directly linked to White Box and you like to join these – drop your details here and we’ll send you an invite.
- Beyond this, Social Enterprise Australia will bring people together to develop a shared sector response to build social enterprise understanding, develop an evidence-based case for reform, and work alongside to grow access to decent work. Find out more.
We’re working alongside SEA and the WISE Hub members to ensure our positions and messaging are aligned. The great news is, you have options. So whichever forum you choose, you'll be heard and part of the collective voice.
There is much more to come. But this is the moment to step forward and help design the system we want to be part of.