The New South Wales (NSW) government has announced a landmark investment of $1.2 billion aimed at reforming the child protection system, marking the first substantial increase in foster care allowances in twenty years. This initiative, highlighted in this year’s state budget, was revealed by Treasurer Daniel Mookhey during the budget address, terming it “the biggest investment in child protection in New South Wales history.”
The budget allocates $797.6 million to support children and young individuals in out-of-home care, a sector that Mookhey described as “chronically and tragically underfunded.” Additionally, the investment includes $143.9 million to implement a 20 per cent increase in tax-free foster care allowances, which will commence on January 1. This is the first raise in these allowances in two decades, with foster carers for a five-year-old gaining an extra $131.20 every fortnight, translating to $3,411.20 annually, while those caring for a 14-year-old will see an additional $176 per fortnight or $4,576 yearly.
Mookhey emphasised the importance of fostering, stating, “Those with love to give a child needing foster care should have the financial means to do so.” The budget also sets aside $191.5 million to enhance the workforce by recruiting over 200 new caseworkers and retaining more than 2,100 existing staff through improved salaries and specialised training. This includes the establishment of 100 new leading caseworker positions to further bolster support.
Moreover, $49.2 million is dedicated to the construction of 44 care homes specifically for children over 12 with complex needs, and an additional $10 million will go towards supporting the Office of the Children’s Guardian. The funding for the increased number of caseworkers is expected to come from savings accrued by ceasing payments to labour hire firms that were previously tasked with caring for children in temporary motel accommodations.
Significantly, the government has reported that there are currently no children in motels, marking the first such occurrence in over 20 years, following the cessation of unaccredited emergency accommodation practices. This comprehensive financial commitment outlines a transformative approach to child welfare, aiming to provide vital support and resources for New South Wales’ most vulnerable children and families.