Almost 4,000 ex-prisoners on parole will be offered intensive individual support in a bid to prevent them returning to jail under the latest "social impact investment" scheme launched by the NSW government.
National Australia Bank and the non-profit Australian Community Support Organisation (ACSO) have signed up as investors in the scheme, which aims to reduce re-incarceration rates.
It will see 3900 parolees over five years receive the support to help their reintegration into the community, particularly in the first 16 weeks after release.
The Transition Regeneration and Community Connection program - otherwise known as On Tracc - will be run by ACSO and a fellow non-profit, arbius.
The investment amounts and potential returns are not being publicly released by the NSW government.
Returns paid to the investors will be linked to the percentage reduction in re-incarceration for parolees referred to the service in the year following their release from custody.
The first group of parolees to go through will be measured after a year against historical re-incarceration data. The next four groups will each be measured after a year against a live randomised control group.
Corrections minister David Elliott said the scheme would help NSW to achieve its commitment to reduce reoffending by five per cent by 2019.
"Rehabilitation services must continue once an offender is released to ensure they do not return to prison," he said.
"This program is designed to help parolees to reintegrate into the community and improve community safety".
On Tracc is the third such investment scheme launched by the NSW government, which aim to attract private sector capital to social programs with the promise of financial returns.
It follows the Newpin Social Benefit Bond, aimed at returning children in out-of home care to their parents and the Benevolent Society Social Benefit Bond, designed to keep children with their families where safe to do so and out of foster care.
Treasurer Gladys Berejiklian said NSW is leading the way when it comes to social impact investment.
"It allows us to address serious challenges facing our community while harnessing the expertise of the not-for-profit sector as well as support from private investors," she said.
