Strengthening Australia’s Reform ‘Muscle’ via Social Licence to Operate

Australian policymaking is at an inflection point. Years of policy gridlock, combined with complex policy needs and politicisation of reform make major reforms infrequent and challenging. As years pass with no or very limited major reforms, pundits, policymakers and scholars question whether Australia is losing its reform muscle.

This research project explores how a “social licence to operate” (SLO) can support major reform addresses concerns about the inadequate delivery of major policy reform by Australian governments in recent times and our capacity to navigate emerging and complex challenges.

It is the first of its kind to apply the SLO concept to analyse social enablers and barriers to policy reform and public service capability that contributes to the “reform muscle” required to sustain a social licence for reform.

The research project was co-funded by ANZSOG and the South Australian Department of Premier and Cabinet and led by Professor Sara Bice at ANU’s Crawford School.

It addresses the research questions of:

• How is SLO defined, understood and operationalised among central and diverse policy actors in Australia?

• What key lessons can be learned from successful outcomes-oriented major reform, applying a SLO lens?

• What are the most promising strategies and approaches for strengthening and sustaining social licence for major policy reform?

Approach

Using a SLO framework developed through the literature review was used in the case studies to analyse policy reform with three components:

• The key framings of SLO used in policy (e.g. trust, acceptance, legitimacy and credibility)

• Six actions that governments commonly take to build SLO (e.g. participatory processes, advisory bodies)

• Fifteen factors that influence SLO and the success of reform (e.g. politicisation of reform, use of mass and social media

Findings

The final report brings together a literature review and commissioned case studies to determine:

The main challenges to achieving social licence identified in the research:

1. Politicisation of decision-making which contributes to a loss of trust in government.

2. The rise of disinformation which is commonly triggered by policy debate and destabilises democratic processes.

3. Reform in response to crisis where participation, transparency and/or evidence are sidelined and government legitimacy is compromised.

4. Sustaining conflicting ‘licences’ (e.g. appropriate disability support vs reduced expenditure on disability support).

5. Actual or perceived lack of fairness in distribution of benefits or burdens associated with reform.

Actions with demonstrated success (with action numbers corresponding to challenge numbers):

1. Building community acceptance of reform via consistent messaging over the policy cycle that incrementally socialises reform options.

2. Collaboration across agencies to share resources, coordinate actions and normalise reform. Transparent reliance on credible knowledge to inform policy (e.g. via expert advisory groups).

3. Bureaucratic capacity to develop a suite of response options underpinned by evidence and understood by communities and have this available when crises occur.

4. Participatory processes involving key stakeholders at appropriate points in the policy cycle matched with transparent mechanisms for incorporating community input in policy.

5. Communication and engagement in collaboration with credible and trusted third parties. Consideration of fairness in terms of outcomes, processes, and recognition of difference.

Capacity and Capability required in the public service to build reform muscle and sustain social licences:

1. Commitment to a workforce that has the time and skills to understand and work genuinely with communities to translate their knowledge into reform processes.

2. Professional development in relation to disinformation response as a specific skillset.

3. Communication expertise within agencies that can tailor communications to support clear information sharing and multiple social licences.

4. The knowledge and skills to assess the appropriate actions required to sustain.

Case study themes

Each case study examines a distinct reform initiative across different jurisdictions and policy domains, offering a rich, practice-oriented lens into how public sector leaders navigated the challenges of reform. Central to each narrative is the strategic use of social licence, how trust, legitimacy, and credibility were cultivated to support reform efforts, and how these elements influenced outcomes.

They highlight recurring themes such as:

• The importance of early and authentic engagement with stakeholders and communities.

• The role of narrative and framing in building public understanding.

• The need for adaptive leadership and institutional resilience.

• The risks and trade-offs involved in pursuing bold reforms.

• Proactive vs reactive policy making and policy driven by crisis.

Each case study concludes with a set of key lessons, practical insights, and questions for reflection, designed to help public servants and policy practitioners apply these learnings to their own work.

Tools

Strengthening Australia’s reform ‘muscle’ via SLO: evidence & practice: (Check List)

Research reports

Strengthening Australia’s reform ‘muscle’ via SLO: evidence & practice: (Literature Review)

Strengthening Australia’s reform ‘muscle’ via SLO: evidence & practice: (Case study collection)