A Social Benefit Bond is a new financial instrument in which private investors provide up-front funding to service providers to deliver improved social outcomes. If these outcomes are delivered, there are cost savings to government that can be used to pay back the up-front funding as well as provide a return on that investment.
NSW Government has entered contracts for two Social Benefit Bonds (SBBs). One with UnitingCare Burnside for the Newpin SBB and another, for The Benevolent Society SBB, that was developed with a consortium of The Benevolent Society, Westpac and Commonwealth Bank.
These initial SBBs will test the capacity for Social Benefit Bonds to:
The SBBs will be evaluated to understand the extent to which the above factors were achieved and to capture other learnings associated with the SBB Trial. The first evaluation of the Trial was recently conducted by KPMG and covered the planning and development of the SBBs to date. The report on this evaluation is available here.
All NSW Government information relating to Social Benefit Bonds and the Request for Proposal process in NSW will be published via this web page.