A major audit has found New South Wales’ prison and post-release systems are failing to provide effective, culturally appropriate supports for First Nations people, with the state’s Auditor-General warning current approaches are not reducing reoffending and are instead reinforcing a damaging cycle of re-incarceration.
In its report to Parliament, the Audit Office found “the activities undertaken by Corrective Services and Youth Justice have had little to no impact on the rates of reoffending among First Nations peoples, nor alleviated pressure on an already overburdened justice system”. It said the “absence of effective, efficient and culturally appropriate rehabilitation services, including practical supports known to reduce reoffending among First Nations peoples, contributes to a costly cycle of reincarceration.”
The audit highlighted how classification and assessment tools can limit access to programs and supports. It found First Nations people are “disproportionately classified as high-risk in NSW custodial settings, reducing their access to reintegration programs and increasing the risk of institutional barriers that contribute to reoffending.”
It also found a critical gap in continuity of care between custody and community, stating agencies “do not have a referral framework to systematically support First Nations peoples exiting custody, including an endorsed list of culturally appropriate services in community.”
The report sets the findings against worsening or stagnant outcomes. It notes that, as at December 2025, First Nations adults made up 33.9 per cent of adults in prison in NSW (described as the highest proportion on record) while 56.4 per cent of young people in detention were First Nations. It also points to persistently high reoffending rates, saying there has been “little to no improvement” over recent years.
Advocates say the audit reinforces long-standing calls for Aboriginal community control and culturally grounded healing responses, rather than one-size-fits-all programs. The report recommends agencies establish stronger governance and accountability aligned with Closing the Gap commitments, co-design a First Nations healing framework, and review tools and settings that contribute to over-classification and reduced access to reintegration pathways.
The NSW government will now face pressure to respond quickly, with communities and service providers arguing that reform must be matched by stable funding for Aboriginal-led programs and practical supports that begin before release and continue long after someone returns home.
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