Agencies overseeing prisoners in New South Wales have failed to implement formal partnerships, shared decision-making and a healing framework, despite these measures being required under Closing the Gap and the NSW Government's Aboriginal Affairs Plan.
A scathing report by the NSW Audit Office, released on Thursday, found that both Corrective Services NSW and Youth Justice NSW (agencies) have at various times introduced five strategies aimed at reducing the over-representation of First Nations people in custody. However, at no time did they track spending or outcomes linked to those strategies and failed to achieve their objectives.
First Nations people make up 3.4 per cent of the NSW population but account for almost 34 per cent of the adult prison population — a record high. Among the youth population, more than 56 per cent of those in custody in the state are Indigenous.
First Nations people are classified as high risk in custodial settings in NSW. Despite identifying the failure to reduce the over-representation of First Nations people in custody as a strategic risk, the audit found both agencies have not established effective governance and accountability mechanisms to address it.
The Auditor-General for NSW, Bola Oyetunji, has tabled in NSW Parliament a report titled Support for First Nations peoples in custody and post-release to reduce reoffending'.
Read here: https://t.co/yU1dtglvDG#AONSW #audit #FirstNations pic.twitter.com/owTwHG2MXc
— AuditOfficeNSW (@AuditOfficeNSW) March 11, 2026
The report also found neither agency has "embedded formal partnerships and shared decision-making, or established a healing framework and therapeutic model of care for First Nations peoples, as required by Closing the Gap and the NSW Government's Aboriginal Affairs Plan [OCHRE]".
"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," the audit 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."
It also found both agencies have failed to implement a "referral framework to systematically support First Nations peoples exiting custody — including an endorsed list of culturally appropriate services in community", and have not "sufficiently addressed the needs of First Nations peoples on remand".
For those on remand, the report said the agencies have not adequately addressed the needs of Indigenous people — despite their growing numbers — nor examined the practices contributing to the sharp increase.
Greens justice and First Nations spokesperson Sue Higginson said the report shows the government's "commitment to Closing the Gap is at best tokenistic, but in reality non-existent".
"The people of New South Wales have been told that skyrocketing remand rates, huge increases in the number of kids locked up in prisons, and drastic overpolicing are all temporary fixes while systemic reform is underway," she said. "The Auditor General has revealed that the promised systemic reform does not exist."
The NSW government has faced criticism from Indigenous, legal and human rights groups, who argue its policies have increased Indigenous incarceration rates and, in turn, heightened the risk of deaths in custody.
Last year, 12 Indigenous people died in custody in NSW — the highest number recorded since data collection began in 1979.
"The incarceration rate for Aboriginal adults is now an alarming 15 times higher than for non-Aboriginal adults," NSW Bureau of Crime Statistics and Research Executive Director Jackie Fitzgerald said last moth.
"In December 2025, around one in 25 Aboriginal men living in NSW was in prison. These record numbers show that we are still not seeing the reductions needed to address Aboriginal overrepresentation in custody or to meet Closing the Gap targets. This remains one of the most persistent and pressing challenges facing the criminal justice system."
The Audit Office recommended both agencies establish governance and accountability structures in line with Closing the Gap and OCHRE, co-design a First Nations Healing Framework, establish formal partnerships, and review their assessment tools.
Ms Higginson called on NSW Minister for Aboriginal Affairs David Harris to fully implement the recommendations.
"His 'sit back and it will happen' approach to co-design is not working. He needs to push back on the Premier's tsunami of law and order measures that are disproportionately impacting First Nations communities," she said.
Requests for comments from Mr Harris by National Indigenous Times were directed to Corrections Minister, Anoulack Chanthivong. He said the government "welcomed" the report, noting they are "important in considering how we can continually improve our system to maximise outcomes for all inmates in our care".
"Improving outcomes for Aboriginal people is a key priority, and Corrective Services NSW is progressing reforms to ensure services are culturally appropriate, evidence‑based and designed in partnership with Aboriginal people and communities. Many of these reforms align with the Audit Office's recommendations," Mr Chanthivong said.
"I remain committed to Closing the Gap through strong governance, Aboriginal leadership and collaboration with Aboriginal organisations, and welcome continued engagement with the Audit Office as this work continues into 2026 and beyond."
Last year, the NSW government committed $246.8 million over four years to meet its Closing the Gap obligations, including an additional $202.4 million allocated in the 2025-26 budget.
However, a separate report released last year by the NSW Auditor-General found governance arrangements for the National Agreement on Closing the Gap in NSW are not operating effectively.
At the time, it found that although the Premier's Department and the NSW Coalition of Aboriginal Peak Organisations (CAPO) had agreed to jointly lead the implementation of the National Agreement, "they have not formed a genuine partnership" and do not agree on how to align existing government policies with the agreement.
