paul mallett proposes the development of “Social Impact Bond” pilots in Tasmania to tackle pressing social issues.

Social Impact Bond (SIB)

A Social Impact Bond (SIB) is an innovative “pay-for-success” funding model for social services. Private or philanthropic investors provide upfront capital to deliver a proven program tackling a social issue.  A trusted provider delivers the program (e.g. family support, youth engagement). If the agreed results are achieved (e.g. more kids finish Year 12, fewer in out-of-home care), the government repays investors — plus a return if targets are exceeded.  If targets aren’t met, the government pays less — the risk shifts from taxpayers to investors.

Strategy

paul advocates for the trial of Social Impact Bonds in Tasmania, because there is a high human and economic cost if the social issues are left untreated. paul believes this innovative approach may enable Tasmania to invest upstream to save big downstream costs on issues such as:

• Youth mental health. High rates of anxiety, depression, and self-harm among young people. Long wait times for services. A well-designed SIB could fund early intervention outreach, community-based mental health hubs, or school-based resilience programs. Clear pay-for-success: reduced hospital admissions, fewer crisis interventions.
• Chronic youth unemployment. Tasmania has some of Australia’s highest youth under-employment and disengagement rates. A SIB could support intensive employment pathways for long-term unemployed youth: mentoring, training, wage subsidies. Measurable: job placement and sustained employment targets.
• Intergenerational income support dependence. Some communities face persistent cycles of income support dependence. A SIB could fund wraparound support for families — combining parenting help, adult education, employment pathways. Measurable: reduced long-term welfare reliance.
• Chronic homelessness.  High numbers of rough sleepers and people cycling in and out of temporary housing. A SIB could expand housing-first models — stable housing plus intensive support. Pay-for-success: fewer crisis accommodation nights, reduced health and justice costs.
• Preventable hospitalisations.  High rates of hospital use for chronic diseases (diabetes, heart disease). A SIB could fund community-based prevention and self-management programs. Savings: reduced hospital admissions, ambulance call-outs.
• Early childhood development. Tasmania lags on some early childhood development indicators (e.g. speech and language, social readiness). A SIB could fund early years family support, parent coaching, or speech therapy outreach. Pay-for-success: improved developmental readiness, reduced need for remedial schooling.
• Justice system. High rates of repeat offenders in the adult justice system. A SIB could fund intensive rehabilitation or re-integration programs for prisoners exiting custody. Outcomes: lower re-offending, fewer prison days.
• Domestic and family violence. Tasmania has persistent rates of family violence, with huge health, justice and housing costs. A SIB could fund proven perpetrator intervention programs, safe housing, or family wraparound support. Measurable: repeat incidents, housing stability.

Inspiration

• NSW Newpin SIB (2013–2020). Goal: Reunite children in foster care with families.  Delivered by UnitingCare, funded by private investors. Result: ~400 children safely restored; investor return ~8.9% pa. Cost savings to government through avoided foster care and better life outcomes.
• Aspire SIB (South Australia). Goal: House and support people with chronic homelessness. Result: Significant savings in health, justice, crisis accommodation.
• UK Peterborough Prison SIB. Goal: Reduce short-term reoffending. Result: Recidivism down ~9%; government paid based on proven outcome.