The Maranguka Justice Reinvestment project in Bourke will receive $1.8 million to reduce reoffending.
The project, which was the first of its kind, was developed to reduce reoffending, improve disadvantage and make the community safer. It's targeting three key areas: breaches of bail, outstanding warrants and the need for a learner driver program.
The goals are achieved in collaboration with different sectors and organisations.
The federal government has announced $1.5 million for the project across five years, while the NSW government will fund another $300,000.
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Just Reinvest NSW chair Sarah Hopkins said achieving outcomes like those in Bourke not only improved outcomes for young people and the community, it was also financially beneficial.
"Just Reinvest is currently working with other communities in NSW who are keen to explore justice reinvestment for themselves. A small upfront investment has led to positive results downstream in Bourke," Ms Hopkins said.
"Governments should be getting behind justice reinvestment initiatives in other communities, and developing a reinvestment funding mechanism to support the long term sustainability of these initiatives."
Federal Member for Parkes Mark Coulton said the project’s partnership with community leaders had been beneficial.
"This is an important project for Bourke, offering a real solution for tackling problems around offending and incarceration. Maranguka Justice Reinvestment creates alternate pathways for local youth and has been hugely positive for this community," Mr Coulton said.