NSW foster changes coming
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The NSW Government has announced sweeping reforms to its $2 billion foster care system following a major review.
Commissioned by Minister for Families and Communities Kate Washington, the “System Review into Out-of-Home Care” (PDF) delivers a stark assessment of the program's failures and provides a detailed plan to rebuild trust, accountability, and outcomes for vulnerable children.
The current system is described as “not fit for purpose”, criticised for its lack of accountability, inefficient use of taxpayer funds, and failure to deliver consistent, evidence-based care.
The review, led by Gelina Talbot and Lauren Dean, outlines a system plagued by fragmentation, slow responses, and ineffective oversight.
The findings show funds intended to support children are often lost in bureaucratic processes, making it difficult to ensure that taxpayer money directly benefits those in need.
One of the most alarming revelations involves the widespread use of High-Cost Emergency Arrangements, where temporary placements can cost upwards of $38,000 per week per child.
These arrangements highlight the inefficiencies of a system overly reliant on crisis-driven solutions, with little emphasis on early intervention or sustainable care models.
The report calls for immediate reforms, including the cessation of outsourcing case management before court orders are finalised and a complete overhaul of financial transparency mechanisms.
Foster carers, it argues, must be better informed about the funding provided to agencies on behalf of the children in their care.
Elevating the voices of children, families, and carers is also a priority, with the review criticising a system that often marginalises those it is meant to support.
The Minns Government says it has already implemented several changes, including an 81 per cent reduction in Alternative Care Arrangements since November 2023 and the opening of Waratah Care Cottages to provide more stable environments for sibling groups.
Among the more troubling findings is the lack of consistency across service providers and government districts, leading to duplication and administrative inefficiencies.
While some providers demonstrated excellence through trauma-informed care and innovative practices, these examples are undermined by a system characterised by gaps in data sharing, poor oversight, and inequitable service delivery.
Efforts to address these failures include a push for stronger inter-agency collaboration and the introduction of rigorous performance metrics and audits.
The review also highlighted cultural shortcomings, noting the absence of meaningful input from Aboriginal communities in decisions affecting Aboriginal children.
With plans underway to transition case management of these children to Aboriginal Community Controlled Organisations, the government says it acknowledges the need for reforms grounded in cultural sensitivity and self-determination.
The NSW Government has committed to a full response to the report’s 13 recommendations in the coming months.
