New social impact investment to reduce parolee reoffending and re-incarceration

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

The investment funds On TRACC (Transition Reintegration and Community Connection), an intensive support program that will provide individualised support to parolees, particularly in the first 16 weeks of parole. It aims to support parolees to successfully reintegrate into the community following their release from prison. The program will complement and build on existing support services for parolees provided by Corrective Services NSW.

On TRACC will work with up to 3,900 parolees over five years, and will be jointly delivered by Australian Community Support Organisation (ACSO) and arbias. ACSO and arbias are experienced providers of community support and early intervention for people in the criminal justice system. In November 2015, they were announced as successful proponents to an earlier request for social impact investment proposals.

The On TRACC social impact investment aims to reduce the social and financial costs of reoffending and reduce pressure on the criminal justice system. It is jointly financed by ACSO and National Australia Bank (NAB), with government payments contingent on the performance of the program.

This is the third social impact investment in NSW, following the Newpin and The Benevolent Society social benefit bonds implemented in 2013. Negotiations are also progressing for social impact investments to achieve outcomes for vulnerable young people transitioning to independence, and patients with chronic and mental health conditions.

Through July, the Office of Social Impact Investment is hosting market sounding sessions to explore opportunities for investments to increase access to early childhood education, to increase permanency for children in out-of-home care, and to reduce youth unemployment.

A quick guide to the On TRACC social impact investment

Policy area:

Reducing parolee reoffending and re-incarceration

Intervention group:

Up to 3,900 adult parolees with a medium to high risk of reoffending, released to supervision in selected Sydney metropolitan areas

Program description:

Intensive, individual support to parolees to help them reintegrate into the community, particularly in the first 16 weeks of release

Outcome measure:

Reduced rate of re-incarceration in the 12 months post release

Contract term:

5 years

Service providers:

ACSO and arbias

Upfront finance:


Government agency:

Corrective Services NSW


NSW Bureau of Crime Statistics and Research