Cost-Benefit Analysis of Mind Australia’s Haven Foundation Program

Published on
Apr 5, 2025

The Haven Foundation Program by Mind Australia addresses the needs of individuals with

severe, long-term mental health challenges by providing stable housing and psychosocial

support. Approximately 535,000 Australians (2% of the adult population) live with these

conditions, leading to social isolation, homelessness, and high hospitalisation rates. This

analysis quantifies the economic value of the program and its potential expansion.

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The Haven Foundation model:

▪ Long-term secure housing for adults with severe and enduring mental health

issues: high-quality apartments in small-scale facilities with communal areas

▪ 24/7 Psychosocial Support: Assistance with daily living, medical appointments,

crisis intervention, and other issues provided by trained on-site staff from Mind

Australia

▪ Financial Model: Residents contribute via their Disability Support Pension (DSP)

or Commonwealth Rental Assistance (CRA), while psychosocial support is

funded through the NDIS or provided gratis by Mind.

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The analysis shows that Haven’s supported housing model provides substantial economic

and social benefits:

▪ Total National Benefit: $26.3 billion net present value (NPV), with a benefit-cost ratio

(BCR) of 2.21 from expanding Haven nationally.

▪ Net benefit of current scenario (without expansion): $40.4 million NPV. BCR of 1.22.

▪ Largest Beneficiaries: Carers, homeless individuals, and people with mental health

challenges in prison.

▪ Hospitalisation Reduction: Decreased emergency admissions and hospital stays.

▪ Reduced Criminal Justice System Costs: Lower interactions with police, courts, and

prisons.

▪ Better Life Outcomes: Increased stability, community participation, and improved

physical and mental health.

▪ Economic Impact and Cost Savings: The current cost of inaction (not providing Haven

services) exceeds $15.5 billion per year, including health, policing, social housing, and

carer costs. Providing Haven facilities could lead to significant cost reductions and

improved life outcomes.

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Conclusion: The Haven Program is a cost-effective, evidence-based solution to support

individuals with severe mental health conditions. Its expansion could generate substantial

economic and social benefits while improving the quality of life for vulnerable populations

in Australia.

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Key recommendations

Expansion of Haven Facilities: Additional funding and policy support are needed to expand

the program nationally.

NDIS Policy Adjustments: Ensure funding aligns with the episodic but persistent nature of

severe mental health conditions.

Interagency Collaboration: Coordination among health, housing, and justice departments

to optimize outcomes.

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