What is Newpin Social Benefit Bond?

The Newpin SBB represents the coming together of a diverse group of people united in the goal of helping some of the most vulnerable families in our community. This was the first time in Australia this new approach to tackling some of society’s most entrenched problems was tried. The New South Wales (NSW) Government worked collaboratively with UnitingCare Burnside and Social Ventures Australia to agree a ‘payment by outcomes’ structure under which taxpayers effectively share the financial benefits flowing from the social impact of the Newpin program.

How was it initially funded?

Through a combination of high-net worth individuals, superannuation funds including Christian Super, and not for profit organisations including The Benevolent Society, The Newpin Social Benefit Bond raised and invested approximately $7 million.

What have they accomplished?

The bond has been designed to deliver considerate financial savings to government, as well as a competitive return to investors. At the end of its third year (financial year ending 30 June 2016), 67 children have been returned to their families for care, resulting in an 12.15% return to investors, up from a 7.5 per cent return in the first year.

What’s next?

UnitingCare has submitted a proposal for a similar Bond-funded program in collaboration with the NSW government to address youth homelessness. The New South Wales government has also expressed intention to take two new social impact bonds to market each year.