New Impact Investment Targets Prisoner Reoffending
12 July 2016 at 1:08 pm
In an Australian first, the New South Wales Government will target prisoner reoffending through a new impact investment.
NSW Treasurer Gladys Berejiklian and Minister for Corrections David Elliott said on Tuesday the initiative would work with parolees to reduce the rate of reoffending and reincarceration.
The investment will support a new program, On Tracc (Transition Reintegration and Community Connection), which will work with up to 3,900 parolees over five years.
“This program will support the government’s commitment to reduce reoffending by 5 per cent by 2019,” Elliott said.
“Rehabilitation services must continue once an offender is released, to ensure they do not return to prison. This program is designed to help parolees to reintegrate into the community and improve community safety.”
On Tracc will provide parolees with intensive individual support to assist their successful reintegration into the community, particularly in their first 16 weeks of parole.
National Australia Bank and the Australian Community Support Organisation are joint investors in the program.
“NSW is leading the way when it comes to social impact investment – and it allows us to address serious challenges facing our community while harnessing the expertise of the Not for Profit sector as well as financial support from private investors,” Berejiklian said.
Impact Investing Australia welcomed the government’s announcement and said the model was a “powerful tool” for addressing some of the most intractable social challenges.
“Prisoner reoffending is a persistent social issue in many countries including Australia. We are seeing that impact investing provides a unique model for tackling this issue, and working towards reduced recidivism,” Impact Investing Australia CEO Daniel Madhavan said.
“Through its whole of government policy and innovative transactions, NSW has played a pioneering role in harnessing impact investment and growing the opportunities for private capital to work alongside public and philanthropic funds in delivering measurable positive social outcomes.
“We are encouraging a more active role for government at all levels to enable and grow the opportunities impact investment. Without government engagement, the potential for impact investment in Australia will not be realised.”
Government payments and returns to investors in this innovative social investment will be dependent on the outcomes achieved by On Tracc.
NSW was the first state to use impact investment, and On Tracc will be its third venture following the Newpin and The Benevolent Society social benefit bonds.
