Social Benefit Bonds

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:

  • Increase funding for prevention and early intervention programs in a sustainable manner
  • Improve accountability for the effectiveness of expenditure  on social services   
  • Catalyse the development of the social finance sector
  • Harness the innovation capacity of both investors and service providers
  • Improve the evidence base for, and focus on measuring the impact of, social services.

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 plans and reports arising from these evaluations will be made publicly available from this site as they are completed.

All NSW Government information relating to Social Benefit Bonds will be published via this web page. 

Further information:

Social Benefit Bonds Trial in NSW FAQs

NSW Social Investment Expert Advisory Group FAQs

Superannuation Funds and Impact Investment FAQs 

KPMG evaluation of the SBB project Joint Development Phase 

Evaluation of the Newpin service – evaluation framework

Evaluation of the Resilient Families Service – evaluation plan

Evaluation of the Newpin SBB Program - implementation report