SII in NSW

Social Impact Investments in NSW

The NSW Government now has six social impact investments and is working to develop more. The process and timeline for our investments outlined below.

December 2018

Joint Development Phase - Tackling Homelessness 

The NSW Government entered a joint development phase to develop a social impact investment tackling homelessness. 

September 2018

Sticking Together Social Impact Bond Launched 

Australia’s first social impact bond addressing youth unemployment – the Sticking Together Social Impact Bond will support approximately 870 young people with high barriers to employment develop work readiness skills and capabilities to enable them to ‘stick’ in work. 

August 2018

Sixth Request for Proposals

The NSW Government opened a request for proposals in any issue / policy area under the SII Evolve initiative. 

2018 Statement of Progress

OSII is pleased to update the market on our progress in delivering the NSW Government's Social Impact Investment Policy in the 2018 Statement of Progress

July 2018

Fourth and Fifth Request for Proposals 

The NSW Government opened a request for proposals to tackle homelessness and in Aboriginal economic development.

The Benevolent Society Bond

In recognition of the excellent outcomes achieved by Resilient Families, and its role in reducing the number of children entering the NSW child protection system, the Benevolent Society, FACS and OSII have successfully established a payment-by-results model to fund the continuation of the program. 

March 2018

Joint Development Phase - Youth Unemployment

The NSW Government entered a joint development phase to develop social impact investments to improve youth unemployment rates.

September 2017

Foyer51 Social Benefit Bond

Foyer51 will support vulnerable young people who are transitioning toward independence, by engaging young people in study, work or training opportunities whilst providing them with a safe housing environment staffed 24/7. The program is the sixth social impact investment in NSW and supports young people aged 18 to 22 for an average of 18 months.

July 2017

Third Request for Proposals (Reopened)

The NSW Government reopened a request for social impact investment proposals focussing on Youth Unemployment. RFP was also open to proposals in other policy areas that met the evaluation criteria.

Silver Chain Community Palliative Care Service Launched

The NSW Government implemented Australia’s first social impact investment to support palliative care patients. The service will provide approximately 8,300 patients who have an advanced, life-limiting and progressive illness with enhanced community-based palliative care services.

June 2017

Joint Development Phase - Early Childhood Education

The NSW Government selected one proponent to enter a joint development phase from its 3rd request for social impact investment proposals.

A proposal from Goodstart Early Learning seeking to improve outcomes through early childhood education was selected.

All parties worked collaboratively to further develop the proposal during the joint development phase. Despite best efforts, a new social impact investment was unable to be agreed.

May 2017

Resolve Social Benefit Bond Launched

The Resolve Social Benefit Bond (SBB) is the first social impact investment developed in Australia focussed on addressing mental illness. Flourish Australia will deliver the Resolve Program to approximately 530 patients in Nepean Blue Mountains and Western NSW Local Health Districts.

October 2016

Third Request for Proposals

The NSW Government opened its third request for social impact investment proposals. While open to proposals in all policy areas, the focus policy areas were:

  • Increasing permanency for children in out of home care, particularly through open adoption
  • Improving outcomes through early childhood education
  • Addressing youth unemployment.

OSII received 19 proposals seeking to address the focus policy areas and others were in response to the RFP.

July 2016

On TRACC Investment Launched

The NSW Government signed a contract to implement Australia’s first social impact investment to reduce parolee reoffending and re-incarceration in July 2016.

The success of the On TRACC investment will be measured regularly throughout the contract.

May 2016

Joint Development Phase - Health Proposals

The NSW Government entered a joint development phase with each of two proponents to develop social impact investments to improve health outcomes. The two proposals were in the areas of:

  • managing mental health hospitalisations
  • managing chronic health conditions. 

April 2016

2016 Statement of Opportunities

Building on the momentum and progress made in 2015, the NSW Government released the 2016 Statement of Opportunities. The statement identified policy areas the NSW Government believes social impact investment can achieve better outcomes for NSW communities.

December 2015

Second Request for Proposals

NSW Government opened the 2nd request for social impact investment proposals to deliver better social and financial outcomes for individuals and communities.

The request for proposals (RFP) identified two preferred policy areas:

  • managing chronic health conditions
  • managing mental health hospitalisations.

Results

21 proposals were received during this request for proposal.

November 2015

Joint Development Phase - Re-offending and Youth Homelessness 

The NSW Government selected two proponents to enter a joint development phase from its request for social impact investment proposals.

A proposal addressing each of the preferred policy areas in the request for proposals was selected. The policy areas were:

  • supporting offenders on parole to reduce their levels of re-offending
  • preventing or reducing homelessness among young people.

The NSW Government worked collaboratively with each proponent to further develop the proposals during the joint development phase. 

July 2015

First Request for Proposals

The NSW Government opened the 1st request for social impact investment proposals to deliver better social and financial outcomes for individuals and communities in NSW.

The request for proposals identifies two preferred policy areas:

  • supporting offenders on parole to reduce their levels of re-offending
  • preventing or reducing homelessness among young people.

Proposals focusing on other policy areas where also accepted.

Result:

16 proposals were received during this request for proposal round.

February 2015

Social Impact Investment Policy

NSW Government’ Social Impact Investment Policy outlines 10 actions the Government will take to:

  • deliver more social impact investment transactions
  • grow the market and remove barriers
  • build the capacity of market participants.

A key commitment in the policy is to aim to bring two investments to market each year

August 2013

Implementing The Benevolent Society Bond

We signed contracts for our second bond in August 2013. The bond was marketed by Westpac and fully subscribed by October when The Benevolent Society began delivering services.

Read the information memorandum for potential investors.

Results

The success of the Benevolent Society's Resilient Families Service will be measured at the end of the five year bond when payments are due to investors.

Read the investor reports for 201420152016 and 2017.

March 2013

Implementing the Newpin Bond

We signed a contract with Uniting for Australia's first social benefit bond in March 2013. Social Ventures Australia marketed the bond, which was fully subscribed and closed earlier than expected.

Read the information memorandum for potential investors.

Results

In the three years to 30 June 2016, Newpin restored 130 children to their families. This is a cumulative restoration rate of 61% compared to 25% for similar families that were not part of the program. The program also prevented children in 47 families from entering care.

Investors received a 12.2% return in 2016.

Read the investor reports for 2013-142014-15, and 2015-16.

March 2012

Joint Development Phase (JDP) 

Three proponents were selected to enter the JDP in March 2012:

  1. UnitingCare Burnside (out-of-home care)
  2. A consortium of the Benevolent Society, Westpac and the Commonwealth Bank (out-of-home care)
  3. Mission Australia and Social Ventures Australia (recidivism).

The purpose of the JDP was to work with the proponents to develop the financial instruments and service arrangements for each bond. We expected them to take six months, but they took closer to 12.

KPMG independently evaluated the JDPs for the two out-of-home care bonds at the end of 2013. The evaluation report outlines the planning and development of both bonds and the lessons learned by participants.

The recidivism bond did not proceed beyond this phase and is not included in the evaluation. The decision not to proceed was based on the aggregate challenges and risks of the proposed model, including the evolving nature of the justice and corrective services policy environment. The NSW Government appreciates the goodwill and efforts of Mission Australia and Social Ventures Australia in developing the model. We all learned a lot from the experience and these lessons have continued to inform our other activities.

September 2011

Request for proposals (RFP)

An RFP for up to two pilot social benefit bonds was announced in September 2011. Applications closed in November 2011.

We received 11 proposals in the areas of out-of-home care and recidivism. Most proposals were made by not-for-profits from NSW.

February 2011

Feasibility study

In 2010, the NSW Government commissioned the Centre for Social Impact (CSI) to determine the feasibility of social benefit bonds in NSW. CSI concluded juvenile justice and parenting skills for at-risk families were suitable policy areas for a pilot.

Read the full report from CSI. We announced a pilot program as part of the 2011-12 Budget in September 2011.

 

In recognition of the excellent outcomes achieved by Resilient Families, and its role in reducing the number of children entering the NSW child protection system, The Benevolent Society, FACS and OSII have successfully established a payment-by-results model to fund the continuation of the program.