Review of payments for foster, kinship and permanent carers

This report, commissioned under the Safe and Supported First Action Plan 2023–2026, reviews the adequacy, consistency and accessibility of payments and financial supports for foster, kinship and permanent carers across Australia. This is the first of 2 reviews to be undertaken as part of the Carers Review project. The second review will have a focus on Aboriginal and Torres Strait Islander carers. 

The review was commissioned in response to longstanding concerns about the adequacy and accessibility of payments and financial supports for carers and how this is impacting the recruitment and retention of carers of children and young people in family-based out-of-home care. 

Family based out-of-home care results in better outcomes for children and young people than residential care and is more cost-effective for governments. However, carers of children in out-of-home care report that carer payments and financial supports are inadequate and inaccessible. This risks placing carer households – and children and young people in care – under financial strain and without access to essential services and supports. 

The review was conducted by the Australian Institute of Family Studies (AIFS) and included:

• desktop reviews of policy and literature
• national consultations with carers, service providers and government representatives
• budget standards estimates of the costs of caring for children in out-of-home care (out-of-home care). 

The findings are based on qualitative and quantitative data collected through workshops, interviews, written submissions and economic analysis.