Sweeping NSW foster care reforms announced

The NSW government has announced what it says are the most significant reforms in decades to the state’s out-of-home care system, expanding the government’s role and tightening oversight of non-government providers.

The reforms, announced on Sunday, follow multiple reviews that found the out-of-home care system, which cares for 13,500 vulnerable young people, was fragmented and lacked accountability, according to the government. The plan includes expanded government responsibilities across the sector and new measures to regulate non-government care providers.

The State government said it would play a larger role in recruiting foster carers and it also plans to take responsibility for providing specialist and therapeutic support services as part of the overhaul. The government has set a timeline to fully implement reforms by 2030, with new accountability measures to be in place by mid-2027.

Oversight and accountability

Families and Communities Minister Kate Washington said the government would introduce tougher accountability measures for non-government providers and clamp down on what it has accused as “egregious” misuse of taxpayer money.

Ms Washington cited examples including motor vehicle leasing schemes, management fees and property purchases that she said redirected public funds away from frontline services.

Families and Communities Minister Kate Washington.

While the government intends to continue outsourcing some child protection services, it outlined plans to enforce stricter transparency for providers. Ms Washington said existing practices had led to public funds being used in ways that did not prioritise services for children and families.

“Accountability and transparency are non-negotiable.”

— Kate Washington

Ms Washington said the government would work with providers that committed to accountability and transparency standards.

The government said it would take on tasks currently handled by the non-government sector, including the recruitment of foster carers. Ms Washington said outsourcing recruitment had left many carers feeling undervalued. She said the reforms aimed to return children, families and carers to the centre of the foster care system in New South Wales.

Under the plan, specialist and therapeutic support services will be delivered by the government. Renee Leigh, the CEO of advocacy organisations Adopt Change and Carers for Kids NSW, said the changes would assist in attracting and retaining foster carers and improve access to therapeutic care.

Ms Leigh said carers reported leaving when they did not feel heard or respected, or could not access therapeutic support for children in their homes.

Caseworkers and the union

The Public Service Association, representing child protection caseworkers, has backed the changes. The association’s assistant general secretary, Troy Wright, said there had long been “enormous frustration” with the current model. He said members assess and determine whether children need to enter care and sometimes supervise arrangements, while funding has been directed to non-government organisations without equivalent accountability requirements.

Mr Wright said members were relieved to see action on a model they had worked under for too long without adequate accountability on the non-government side.

Key changes

• Tighter accountability measures for non-government care providers
• Government-led recruitment of foster carers
• Government delivery of specialist and therapeutic support services
• Ongoing outsourcing of some child protection services with stricter oversight
• Implementation of new accountability measures by mid-2027
• Full reform implementation targeted by 2030

Community impact

Advocates and the union representing caseworkers said the reforms could support better outcomes for children and stabilise the workforce of carers. Ms Leigh said more effective recruitment and improved access to therapeutic services could help retain carers. The Public Service Association said clearer accountability would align with the responsibilities caseworkers already carry in assessing, determining and supervising care arrangements.

Teresa’s experience underscored the instability young people can face when moving through multiple placements or temporary supervised hotel stays. She said the changes could open opportunities to consider how system reform can function for children and those working in the sector.