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SECTOR INTELLIGENCE REPORTNEW SOUTH WALESMARCH 2026

$327M/year.
34% detention surge.
The bail crisis.

A comprehensive evidence report on New South Wales' youth justice system: where the money goes, what the data shows, the impact of bail reform, and why Aboriginal-led alternatives deliver better outcomes. 12 programs mapped. 0 media articles analysed.

$327M
YJ Spend 2024-25
ROGS 2025
184
Detained avg night
AIHW 2023-24
22.1x
Indigenous Overrep
ROGS 2025
70%+
On remand
AIHW 2023-24
+34%
Detention surge
Since bail laws Mar 2024
12
Programs Mapped
JusticeHub

The System at Scale

On any given night, 184 young people are in NSW detention. Over 70% are unsentenced. Since the 2024 bail reforms, that number is climbing.

70%+
Unsentenced in detention
On remand, not convicted
184
Detained per night
AIHW 2023-24
1,736
Supervised per day
Community + detention
48%
First Nations in detention
22.1x overrepresentation

A bail crisis driving detention numbers

Since the NSW Government tightened bail laws in March 2024, detention numbers have surged 34%. The increase is overwhelmingly children on remand — not sentenced. NSW is not responding to more crime; it is detaining more children who haven't been found guilty, at $2,460/day.

AIHW 2023-24, NSW chapter

22.1x Indigenous overrepresentation

Aboriginal and Torres Strait Islander young people are 22.1 times more likely to be in detention than non-Indigenous young people. This is one of the highest rates of racial disparity in any justice system globally. Closing the Gap Target 11 requires reducing the rate to 22.3/10,000 — NSW is at 32.

ROGS 2025

Closing the Gap -- Target 11

NSW's First Nations youth detention rate is 32 per 10,000 -- well above the national target of 22.3. Despite successive Closing the Gap implementation plans, the rate has not improved. The bail law changes risk making it worse.

Closing the Gap Dashboard

The Spending Picture

$327M/year on youth justice. Detention costs $2,460/day per child. Community supervision costs $137/day. The system chooses the expensive option.

ROGS Real Recurrent Expenditure ($'000)

2015-16
$251M
2016-17
$249M
2017-18
$249M
2018-19
$239M
2019-20
$263M
2020-21
$259M
2021-22
$328M
2022-23
$329M
2023-24
$352M
2024-25
$327M

Source: ROGS 2025, Table 17A.1

The Cost Equation

SettingCost/DayCost/YearWhat it buys
Detention$2,460$898KA concrete cell, 34% surge in numbers, worsening outcomes
Community supervision$137$50KCase management, reporting obligations
Maranguka (Bourke)~$10$3.6KAboriginal-led, 42% fewer custody days, 5:1 return
Youth on Track~$30$11KEarly intervention, evidence-based, evaluated

Source: ROGS 2025; Maranguka KPMG assessment; Youth on Track evaluation

Cost Per Young Person -- 12 NSW Programs

Community (<$5K/yr)
0

Mentoring, diversion, sport, cultural programs

Intensive ($5-25K/yr)
9

Case management, bail support, family intervention

Residential ($25-100K/yr)
1

Residential rehab, therapeutic care

Detention (>$100K/yr)
2

Youth detention centres

Source: JusticeHub program cost analysis, March 2026

Detention costs 18x more than community supervision

NSW spends $2,460/day per child in detention vs $137/day for community supervision. The 34% surge since bail changes means an estimated additional $30-40M/year in detention costs — money that produces worse outcomes.

Maranguka delivers a 5:1 return at a fraction of the cost

The KPMG-validated Maranguka Justice Reinvestment Project in Bourke costs $600K/year and delivers $3.1M in gross impact. A 5:1 return. 42% fewer custody days. 23% drop in domestic violence. Aboriginal-led. Evidence-based. Underfunded.

Where the Money Goes

1,000 funding records worth $3.8B tracked. Who receives NSW youth justice funding?

Unlinked/Unknown 77%
Community Adjacent 10%
TypeTotalRecordsOrgs%
Unlinked/Unknown$3.0B121077%
Community Adjacent$383.9M51636410%
Intermediary$343.2M3161769%
Community Controlled$134.9M28174%
Government$2.5M870%
University$709K1060%
Peak Body$10K110%
#RecipientTypeIndigenousRecordsTotal Value%
1Youth Justice - Total expenditureUnlinked/Unknown4$1.3B33%
2Youth Justice - Detention-based servicesUnlinked/Unknown6$1.2B32%
3Youth Justice - Community-based servicesUnlinked/Unknown4$419.1M11%
4SNOW MEDICAL RESEARCH FOUNDATION LIMITEDIntermediary2$150.0M4%
5Wesley Community Services LimitedCommunity Adjacent5$58.8M2%
6Allambi Care LimitedCommunity ControlledYes2$55.2M1%
7Caresouth LimitedCommunity Adjacent5$44.0M1%
8PLACE — National Centre for Place-Based CollaborationIntermediary2$38.6M1%
9Challenge Community Services LimitedIntermediary3$36.9M1%
10The University Of NewcastleCommunity ControlledYes1$25.0M1%
11Mackillop Family Services LimitedCommunity Adjacent4$19.1M1%
12IBM AUSTRALIA LTDCommunity Adjacent1$18.5M0%
13Marist Youth Care LimitedCommunity ControlledYes4$17.1M0%
14St Vincent's Curran FoundationIntermediary2$16.0M0%
15Burrun Dalai Aboriginal CorporationCommunity ControlledYes2$15.4M0%
16Black Dog InstituteCommunity Adjacent2$14.7M0%
17Bridge Housing LimitedCommunity Adjacent1$14.4M0%
18St George Community Housing LimitedCommunity Adjacent2$10.4M0%
19The Trustee for the Halloran TrustIntermediary3$10.0M0%
20Moelis Australia FoundationIntermediary1$8.9M0%
21B J WhelanUnlinked/Unknown1$8.2M0%
22Veritas HouseCommunity Adjacent2$8.1M0%
23The Disability Trust LimitedIntermediary2$8.1M0%
24P.Y.S Paramount Youth Services Pty LtdCommunity Adjacent1$7.9M0%
25SDN Child And Family Services Pty LimitedCommunity Adjacent3$7.3M0%
Top 25 Total65$3.5B92%

The intermediary question

Across NSW youth justice, the pattern mirrors the national trend: intermediary organisations receive the bulk of government funding while Aboriginal Community Controlled Organisations (ACCOs) receive a fraction. When 48% of detained young people are First Nations, the question is whether the funding structure matches the need.

The Evidence Base

12 NSW programs mapped by evidence level. 4 Proven, 16 Effective.

Effective
1
8%
Promising
7
58%
Untested
4
33%

4 Proven programs in NSW

NSW has 4 Proven and 16 Effective programs -- a stronger evidence base than most Australian states. Programs like Functional Family Therapy, Multisystemic Therapy, and Youth on Track have rigorous evaluations. The challenge is scale: proven programs reach a fraction of young people in the system.

The gap between evidence and investment

Despite having programs with strong evidence, NSW continues to invest the majority of its $327M budget in detention infrastructure. The bail law changes have directed more young people into the most expensive, least effective part of the system -- precisely where evidence says outcomes are worst.

What the Sector Is Saying

The NSW youth justice debate has four distinct political camps. The evidence points one direction.

Law & Order Expansion

Position: Tougher bail, raise the maximum age of detention, more police powers

Key actors: NSW Government (current), Police Association

Evidence: Contradicts 40 years of criminological evidence. Bail tightening has already produced a 34% detention surge with no reduction in youth offending.

Justice Reinvestment

Position: Redirect detention spending to community-led prevention and early intervention

Key actors: JustReinvest NSW, Maranguka, Aboriginal Legal Services, BOCSAR researchers

Evidence: KPMG-validated 5:1 return (Maranguka). 42% fewer custody days in Bourke. 23% drop in domestic violence.

Raise the Age

Position: Raise the minimum age of criminal responsibility from 10 to 14

Key actors: Raise the Age Campaign, AHRC, Law Council, UNSW, ATSILS, medical colleges

Evidence: Aligned with UN Convention on Rights of the Child, endorsed by every major medical body. NT and ACT have legislated. NSW has not.

Aboriginal Self-Determination

Position: Transfer decision-making authority to Aboriginal communities

Key actors: AbSec, ALS NSW/ACT, Yuwaya Ngarra-li, Koori Justice Panels

Evidence: Maranguka, Koori Courts (15% less reoffending), Yuwaya Ngarra-li (Walgett). Where Aboriginal communities lead, outcomes improve.

NSW Legislative Council Select Committee2024

The Select Committee on Youth Justice heard evidence that bail reforms would increase remand populations. This prediction has been confirmed -- detention up 34% since March 2024.

Inspector of Custodial Services2024-25

Inspections of Cobham and Reiby Youth Justice Centres identified overcrowding, staff shortages, and conditions below minimum standards. Strip search practices flagged as human rights concerns.

BOCSAR (Bureau of Crime Statistics)Ongoing

NSW crime data consistently shows youth crime has been declining for over a decade. The bail reforms are a response to perception, not trend. Reoffending rates remain high for those who pass through detention.

AHRC -- Help Way Earlier!2024

The Australian Human Rights Commission report called for a fundamental shift from punitive to welfare-based approaches for children. NSW was identified as a jurisdiction where detention is expanding despite falling crime.

Voices from Community

The data describes a system. These are the people building the alternatives.

Western Sydney -- Mounty Yarns

Mounty Yarns is a storytelling project from Western Sydney that gives voice to young people and families affected by the justice system. Their transcripts and recordings document what the system looks like from the inside -- not from ministerial press releases, but from the people who live through it.

Stories from community members navigating youth justice, child protection, and housing systems simultaneously. Every story published with informed consent.Empathy Ledger

Bourke -- Maranguka Justice Reinvestment

“This is what Aboriginal-led looks like”

Maranguka was designed by the Bourke Aboriginal community, not for them. Elders, families, and young people shaped every program element. The result: 42% fewer custody days, 23% drop in DV, 31% rise in Year 12 retention. The KPMG evaluation found a 5:1 return on investment.

Bourke Aboriginal community

Walgett -- Yuwaya Ngarra-li

“We Speak Together” in Gamilaraay. A collective impact initiative led by Elders in Walgett, one of the most disadvantaged communities in NSW. Rather than a single program, it is a governance model: Aboriginal Elders setting priorities for the whole community, with government and NGOs accountable to them.

Walgett Elders, UNSW partnership

What these communities share

Cultural authority that cannot be outsourced. Governance by Elders, not by contract managers. Programs that emerge from community need, not from government tender processes. The evidence shows they work better. The funding system does not reflect this.

The Cross-System Pipeline

82% of children in NSW youth justice were known to child protection. The pipeline is identifiable years in advance.

82%
CP contact (all children)
NSW data
89%
CP contact (First Nations)
NSW data
~50%
Mental health comorbidity
Clinical literature
~40%
Cognitive disability (est.)
National studies

The pipeline is predictable -- and preventable

82% of children in NSW youth justice had prior child protection contact. For First Nations children: 89%. These are children known to the state years before they enter the justice system. Family support at $3-8K/year could prevent the $898K/year detention pathway. The system chooses the expensive, harmful option.

What Works in NSW

Aboriginal-led models and evidence-based programs that deliver results. These exist. They are underfunded.

Maranguka Justice Reinvestment (Bourke)

Aboriginal-led, collective impact
42% fewer custody days, 23% less DV, 5:1 ROI

KPMG-evaluated. Aboriginal community governance. $600K/year cost, $3.1M gross impact. The most rigorously evaluated justice reinvestment project in Australia.

JustReinvest NSW; KPMG Assessment

Koori Court (Circle Sentencing)

Aboriginal-led, court diversion
15% less reoffending

Elders sit with magistrates. Cultural authority integrated into the justice process. Operating in multiple NSW locations. Lower reoffending than mainstream courts for comparable offences.

NSW BOCSAR evaluation

Youth on Track

Evidence-based early intervention
Evaluated, positive outcomes

Targets 10-17 year olds at risk of reoffending. Uses risk-needs-responsivity framework. Delivered by NGOs. Independently evaluated with positive results.

NSW DCJ evaluation

Yuwaya Ngarra-li (Walgett)

Elder-led collective impact
Governance transformation

Not a program -- a governance model. Elders set priorities, government and NGOs accountable to community. UNSW partnership. Addresses root causes across education, housing, health, justice.

UNSW; Yuwaya Ngarra-li consortium

The meta-analytic consensus

Across 48 meta-analyses covering 40 years of research: rehabilitation works (OR 1.73 for CBT-based programs), while deterrence-based approaches are slightly harmful (OR 0.85). NSW's bail-driven detention expansion contradicts the entire evidence base. The programs listed above are aligned with what the research says works.

PMC: The 40-year debate meta-review

The Philanthropic Response

Government spends $327M/year on youth justice. Philanthropy contributes ~$45M. They fund very different things.

Government vs Philanthropy: Where the Money Goes

DimensionGovernment ($327M/yr)Philanthropy (~$45M/yr)
Primary investmentDetention infrastructure and operationsCommunity programs, research, advocacy
ApproachTighter bail, longer sentences, more bedsPrevention, diversion, justice reinvestment
ACCO fundingMinority of grants go to ACCOsSeveral foundations prioritise ACCOs directly
Evidence alignmentContradicts 40-year meta-analytic consensusGenerally aligned with evidence base
AccountabilityLow transparency (limited RTI, no outcome data)Variable -- some publish evaluations, others do not
ScaleSystem-wide but poorly targetedPlace-based but limited reach

Key Philanthropic Actors in NSW Youth Justice

Dusseldorp Forum

Justice reinvestment, Aboriginal self-determination

Core funder of JustReinvest NSW and Maranguka. Backs Aboriginal-led governance models.

Paul Ramsay Foundation

Place-based initiatives, systemic change

Largest Australian philanthropy. Funds community-led approaches to breaking cycles of disadvantage.

Vincent Fairfax Family Foundation

Youth, Aboriginal communities, leadership

Long-term funder of Aboriginal community development and youth programs in regional NSW.

Tim Fairfax Foundation

Regional and remote communities, arts, health

Funds community infrastructure in remote NSW communities. Arts-based youth engagement.

Minderoo Foundation

Systemic reform, data and evidence

Funds Raise the Age campaign. Invests in data infrastructure for justice reform.

Social Ventures Australia

Impact investment, social enterprise

Manages social impact bonds for youth justice. Bridges philanthropy and government funding.

Philanthropy funds what government won't

In NSW, philanthropic funders have filled critical gaps: funding the Maranguka evaluation, supporting Raise the Age advocacy, backing Aboriginal-led governance models. Government spends $327M primarily on detention. Philanthropy spends ~$45M primarily on alternatives. The question is not whether alternatives exist -- it is why they remain philanthropically funded rather than publicly funded.

The ACCO funding gap persists

Even in philanthropy, ACCOs receive less than their non-Indigenous counterparts. While foundations like Dusseldorp Forum explicitly prioritise Aboriginal-led organisations, the broader philanthropic sector still channels the majority of funding through intermediaries. In a system where 48% of detained young people are First Nations, this remains a structural problem.

Eight Recommendations

Based on the evidence in this report. Not theory -- every recommendation has a working model.

1

Reverse the bail law changes

The 34% detention surge is a policy choice, not a crime trend. Revert to pre-March 2024 bail settings. Redirect the estimated $30-40M/year in additional detention costs to community bail support.

2

Raise the age to 14

Align with the UN Convention on the Rights of the Child and the ACT/NT precedent. No child under 14 should be in detention. Invest in therapeutic, family-based responses for under-14s.

3

Fund Maranguka-model justice reinvestment in 10 communities

The Bourke model is KPMG-validated at 5:1 return. Fund Aboriginal communities to lead justice reinvestment in 10 locations: Walgett, Dubbo, Moree, Kempsey, Redfern, Mt Druitt, Coffs Harbour, Tamworth, Broken Hill, Nowra.

4

Transfer 30% of youth justice funding to ACCOs by 2028

Currently a fraction of funding reaches Aboriginal Community Controlled Organisations. Set a binding target: 30% of youth justice funding to ACCOs within three years, with community governance.

5

Mandate program-level outcome reporting

Currently no public data on which programs reduce reoffending. Require every funded program to report 12-month reoffending rates, cultural safety metrics, and young person satisfaction.

6

Expand Koori Courts statewide

Circle Sentencing courts show 15% less reoffending. Currently available in limited locations. Fund expansion to every court circuit in NSW with significant Aboriginal populations.

7

Establish a cross-system early intervention fund

82% of youth justice-involved children were known to child protection. Create a pooled fund across DCJ, Health, and Education to intervene at the child protection stage, not the justice stage.

8

Publish the data

Release program-level spending, outcome data by program, intermediary overhead ratios, and cultural safety metrics. Transparency is the precondition for accountability.

Connected

This report is part of a wider intelligence system. Explore the data, the stories, and the organisations.

The Bottom Line

New South Wales spends $327 million per year on youth justice. Since the bail law changes in March 2024, detention numbers have surged 34%. Over 70% of detained children are unsentenced.

Aboriginal young people are 22.1x overrepresented in detention. 82% of children in youth justice were known to child protection. The pipeline is identifiable and preventable.

Meanwhile, Maranguka in Bourke delivers a 5:1 return on investment. Koori Courts reduce reoffending by 15%. Yuwaya Ngarra-li in Walgett shows what Elder-led governance looks like. These models exist, they work, and they are underfunded.

The question is not whether alternatives exist. It is why NSW continues to invest in a system that every piece of evidence says does not work.

Data: ROGS 2025, AIHW 2023-24, BOCSAR, NSW Inspector of Custodial Services, NSW Legislative Council, KPMG (Maranguka), AHRC, Senate Inquiry. Built by JusticeHub (justicehub.com.au). Senate inquiry reports June 2026.