Impact Investing Australia has welcomed the NSW Government’s announcement today of a new impact investment to target parolees with the aim of reducing the rate of reoffending and re-incarceration.
The impact 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 to prevent reoffending and re-incarceration. NAB and the Australian Community Support Organisation are joint investors in the program, highlighting the potential of collaboration between financial services organisations, the community sector and government.
“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,” said Daniel Madhavan, CEO of Impact Investing Australia.
Impact investing is a growing field where investments are made into organisations, projects or funds with the intention of generating positive social and environmental outcomes, alongside a financial return.
Impact investing provides government with a powerful tool for addressing some of our most intractable societal challenges. It is helping to generate positive results outcomes across a broad range of areas including: housing, employment, disability, aged care, health, education, arts and culture and agriculture and the environment.
“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” said Madhavan.