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Social impact investment fails to make difference in criminal justice system
The first social impact investment into the criminal justice system found no changes in reducing reoffending rates, supporting a decision to abandon the initiative.
Naomi Neilson
A study by the NSW Bureau of Crime Statistics and Research (BOCSAR) found a first-tested social impact investment in the criminal justice system did not make a difference to reoffending rates but has hopes that future programs could have better results.
Across four measures of recidivism — returned to custody, committed any new offence, were sentenced to imprisonment and committed a new personal, property or a serious drug offence — BOSCAR said it found there were “no statistically significant differences between offenders assigned to On TRACC” and those assigned to similar models.
Further analysis found only one significant result in a sub-study: non-Aboriginal people in the program were 5 percentage points less likely to commit the personal, property or serious drug offences. However, “this finding should be interpreted cautiously”.
The social impact investment was a “payment by result” contract with the arrangement planned to have National Australia Bank and ASCO provide working capital while the NSW government payments working contingent on program performance.
In 2019, all parties agreed to terminate the investment. The government said it remains committed to the approach as it “allows evidence of what works to be collected and to enable it to direct resources into areas where they can have the biggest impact”.
Naomi Neilson
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
You can email Naomi at:
