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.

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.

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.

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.

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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