New South Wales has an opportunity to reduce Aboriginal over-representation in the criminal justice system by doubling down on justice reinvestment, argues a new report from researchers at the University of Technology Sydney, the University of Sydney and Macquarie University alongside Aboriginal community leaders and community controlled organisations.
The net prison operating and capital costs in NSW rose from $0.95 billion in 2014-15 to $2.2 billion in 2024-25, while Aboriginal imprisonment continued to climb. In March 2026, Aboriginal adults reached a record high of 34.5 per cent of the NSW prison population, despite representing only 3.3 per cent of the general population.
The report, Investing in Aboriginal-led justice solutions, supported by an APPI Policy Challenge Grant, argues that justice reinvestment should be supported as a long-term framework rather than a series of short-term programs. It examines how NSW can strengthen justice reinvestment by providing secure, ongoing support for Aboriginal-led initiatives that strengthen how Aboriginal communities and government work together to address the underlying drivers of over-representation.
While justice reinvestment initiatives have demonstrated positive impacts in communities, the report finds that no jurisdiction in Australia has yet fully implemented reinvestment approaches: there is no method for calculating the savings these initiatives generate, and no mechanism to return those savings to build on initiative success over time.
Lead researcher Associate Professor Fiona Allison said: “Justice reinvestment has shown promise in Aboriginal communities across NSW, but current funding arrangements are too short-term and fragmented to support the scale of change required. This report sets out a practical pathway toward long-term investment in Aboriginal-led solutions.”
The report outlines a new reinvestment model that would provide sustained funding for community-led initiatives, strengthen Aboriginal decision-making and establish new mechanisms for government and communities to share responsibility for outcomes. Key recommendations include establishing a Justice Reinvestment Aboriginal Community Controlled Organisation, creating a dedicated justice reinvestment fund and ensuring sustainable support while longer-term arrangements are developed.
Justice reinvestment has shown promise in Aboriginal communities across NSW, but current funding arrangements are too short-term and fragmented to support the scale of change required. This report sets out a practical pathway toward long-term investment in Aboriginal-led solutions.
Associate Professor Fiona Allison
Daniel Daylight, CEO, Mounty Aboriginal Youth & Community Services and a co-author of the report said: “If you shift money away from crisis and punishment to support prevention and community leadership, different outcomes are possible. Reinvestment provides a pathway forward in the right direction to achieve this.”
APPI Executive Director for Policy and Projects Marianna Brungs said: “This report proposes a new model for justice reinvestment that supports Aboriginal communities to play a leading role in shaping justice responses, while providing the NSW Government with a practical framework for implementation.”
The report was produced through the APPI Policy Challenge Grant, which supports research translation and policy engagement across Australian universities.
