Criminal justice benefits of the Magistrates’ Early Referral into Treatment (MERIT) program exceed its cost

Link to Report Summary: 

Release date: Thursday 12 September 2024

A new study by the NSW Bureau of Crime Statistics and Research (BOCSAR) has found that the criminal justice and health benefits associated with the NSW MERIT program exceed the cost of delivering the program. On average, the MERIT program costs $6,339 per referral to deliver, but results in savings of $7,226 per referral due to a reduction in criminal justice contacts. We find that MERIT delivers a net benefit of $887 per individual referred, equivalent to a return of $1.14 for every dollar spent.

BOCSAR conducted a cost-benefit analysis (CBA) of the MERIT program by comparing the criminal justice and health outcomes for 9,680 defendants referred to MERIT between 2012-2017 with a matched group of 9,680 defendants who were eligible but were not referred.

Key benefits among those referred to the MERIT program compared to those not referred include:

  • 22 fewer days in custody over two years, which translates to $4,552 in avoided prison costs.
  • A reduction in reoffending of 0.32 fewer offences on average in the first year, which translates to $1,185 in avoided community corrections costs, $1,069 in avoided victim costs and $536 in avoided police and court costs.

Commenting on these findings, Jackie Fitzgerald, Executive Director of BOCSAR, said "the study provided evidence that programs targeting the underlying causes of offending, can not only deliver a crime reduction benefit, but can be more cost-effective than traditional court processes."        

For comment please contact:

Jackie Fitzgerald, Executive Director, NSW Bureau of Crime Statistics & Research.

Phone: +61 423 139 687
Email: jackie.fitzgerald@dcj.nsw.gov.au
Copies of the report: www.bocsar.nsw.gov.au 


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About the Magistrates Early Referral into Treatment program – MERIT

The NSW MERIT program is a voluntary, pre-plea program for adults whose offending behaviour is related to drug and/or alcohol use. In the period covered by the study, MERIT was available in 62 NSW Local Courts. It has since been expanded and is now available in 72 NSW Local Courts (as of July 2024). MERIT participants have their court matters deferred for 12 weeks while they undergo drug and/or alcohol treatment. The program aims to improve participant health and reduce their risk of reoffending. . 

Key Cost Benefit Analysis findings

  • The costs of the MERIT program were estimated from information on staffing, episodes of alcohol and other drug (AOD) treatment, and estimates of administrative costs over the years 2012 to 2019. BOCSAR estimated the impact of the program on each person’s: a) reoffending; b) days in custody; c) ambulance callouts; d) emergency department presentations; e) unplanned hospital admissions; and f) mortality, in the two years following referral to MERIT.
  • Individuals in the matched comparison group spent approximately 94 days in custody in the two years after their index appearance, while those referred to MERIT spent 72 days in custody, a difference of 22 days in custody.
  • The reoffending rate in the first year was 38% among those referred to MERIT versus 40% among those not referred (a 2 percentage point decrease or a reduction of 0.32 offences on average), which translates to $1,185 in avoided community corrections costs, $1,069 in avoided victim costs, $416 in avoided court costs and $120 in avoided police costs.
  • Those referred to MERIT had slightly more emergency department presentations and ambulance callouts in the first year after referral, resulting in $116 in additional costs.
  • The total value of benefits of the MERIT program are $7,226 per referral and the total costs of the program are $6,339 per referral. This translates into a net present value of $887 per individual referred to the MERIT program or $1.14 in benefits for each dollar spent on the program.


Last updated:

11 Sep 2024