The State Government has re-negotiated a five-year contract extension for the management of Australia's biggest prison.
Corrective Services Minister Joe Francis said the new Acacia Prison contract was good news for taxpayers with estimated savings of $55 million over five years.
"A total of $33.2 million of that will come from lower daily prisoner costs, but with no changes to current service specifications or standards," Mr Francis said.
"The contract cost per prisoner per day at Acacia will come down from $156 to $144. By comparison, the average cost per prisoner per day across the entire adult prison estate is $332.
"A further $22 million is expected to be saved through the installation of 75 additional beds which will allow prisoners from higher-cost prisons to be moved to Acacia."
The additional beds will take maximum capacity at the Serco-run facility to 1,470.
Serco has agreed to meet the cost of the extra beds and will also pay for capital improvements to security and prisoner management.
"There will also be increased financial penalties, or abatements, in the event of an escape or other serious incident," the Minister said.
"The Department of Corrective Services will also work with Serco over the next two and half years to implement performance benchmarks which will provide financial incentives to improve performance in areas such as recidivism rates and program completion by prisoners.
"This Acacia agreement delivers value for money for taxpayers and reflects the benefits that can flow from comparisons between private and public sector management in our prison system.
"Acacia Prison has consistently been acknowledged as one of the best run prisons in the State. This contract extension should ensure that performance record is maintained."
The new Acacia contract will run until May 2021
Serco has been managing Acacia Prison since 2006 when it took over from AIMS Corp
A 387-bed expansion project at Acacia was completed in 2015, taking capacity to 1,395 and making the prison the largest in Australia
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